RBI has announced the calendar for premature redemption of sovereign gold bond issued between May, 2017 and May, 2020.
In all, the Reserve Bank of India will redeem 30 SGBs from October 11 and February 7, 2025. The redemption price will be announced by RBI based on the average gold price on the last three days before maturity.
The window for redemption request will be open for 20 days and the amount will be credited to the investor’s account along with interest 10 days after putting in a redemption request.
The first redemption window for SGB issued on May 12, 2017, will be opened between October 11 and November 2 and the amount will be credited to the investor’s account on November 12.
Though SGBs have a tenure of 8 years, investors can apply for pre-mature redemption after 5, 6 and 7 years.
SGBs are government securities denominated in grams of gold, and they are a substitute for holding physical gold. The bonds are issued in denominations of one gram of gold and in multiples thereof.
Minimum investment in SGB is one gram with a maximum limit of 4 kg for individuals and 20 kg for trusts and similar entities notified by the government per financial year.
