Sovereign Gold Bonds Premature Redemption 2025: RBI announces early exit schedule for SGB investors—Check if your bond is eligible

The Reserve Bank of India (RBI) has announced the premature redemption schedule for Sovereign Gold Bonds (SGBs) maturing between April and September 2025. Investors holding these bonds now have the option to redeem them before their maturity date.

According to the central bank's press release dated February 21, 2025, investors holding eligible SGBs can submit requests for early encashment during the specified window.

SGBs Premature redemption schedule

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The RBI noted that SGBs issued five years ago are now eligible for premature redemption. The detailed schedule for redemptions between April and September 2025 has been outlined, with the central bank advising investors to stay updated, as dates may change due to unscheduled holidays.

The redemption price for each tranche will be determined based on the average closing price of gold during the previous week, as published by the India Bullion and Jewellers Association Ltd. (IBJA).

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SGBs: Eligible bonds and key dates

The RBI's list of SGBs eligible for premature redemption between April and September 2025 includes specific dates for each tranche. The central bank cautioned that the redemption schedule may change if an unscheduled holiday occurs.

Investors wishing to redeem their holdings before maturity should take note of the submission period for redemption requests. The redemption price will be based on the average closing price of gold for the previous week, ensuring transparency and consistency across tranches.

What are Sovereign Gold Bonds?

SGBs are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. They offer an alternative to holding physical gold while providing periodic interest. The bonds are available in denominations of one gram of gold and multiples thereof, with a minimum investment requirement of one gram. The maximum limit for individuals and Hindu Undivided Families (HUFs) is 4 kg per fiscal year, while trusts and similar entities can invest up to 20 kg.

Eligibility to invest in Sovereign Gold Bonds

Eligible investors include individuals, HUFs, trusts, universities, and charitable institutions. Even if an individual's residential status changes from resident to non-resident, they can continue to hold SGBs until early redemption or maturity.

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How one can invest in Sovereign Gold Bonds?

Investors can purchase SGBs through various channels:
- Banks: Both public and private sector banks offer SGBs.
- Post Offices: SGBs are available for purchase at designated post offices.
- Stock Exchanges: Investors can buy SGBs through the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
- Online: Investors can apply online via internet banking, which offers a discount of Rs 50 per gram.

SGBs interest rate and maturity

SGBs carry a fixed interest rate of 2.5 per cent per annum, paid semi-annually. The bonds mature after eight years, but investors can opt for premature redemption after five years. The redemption price is based on the average closing price of gold for the previous week.