Sovereign Gold Bonds: RBI issues dates for premature redemption, check details

The Reserve Bank of India (RBI) has set dates for the premature withdrawal of several tranches of Sovereign Gold Bonds (SGB). The RBI issued a press release outlining the details of the SGB tranches scheduled for premature redemption from April 1, 2023, to September 30, 2023, as well as a window for submitting requests for premature redemption.

SGBs are government securities denominated in grams of gold. They can be considered substitutes for holding physical gold.

Also read:Sovereign Gold Bond premature redemption: Check details of SGB 2016-17 Series I due date, price, tax applicability


According to the RBI press release dated February 28, 2023, "the details of tranches falling due for premature redemption during the period April 01, 2023, to September 30, 2023, along with the window available for submission of the request for premature redemption by the investors are as under."

Sl. No	SGB Series	Issue Date	Date of coupon payment	Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct
				From	To
1	2015-I	30-Nov-15	30-May-23	29-Apr-23	20-May-23
2	2016-I	8-Feb-16	8-Aug-23	7-Jul-23	28-Jul-23
3	2016-II	29-Mar-16	29-Sep-23	29-Aug-23	20-Sep-23
4	2016-17 Series I	5-Aug-16	5-Aug-23	5-Jul-23	25-Jul-23
5	2016-17 Series II	30-Sep-16	30-Sep-23	30-Aug-23	20-Sep-23
6	2016-17 Series III	17-Nov-16	17-May-23	17-Apr-23	8-May-23
7	2016-17 Series IV	17-Mar-17	17-Sep-23	17-Aug-23	7-Sep-23
8	2017-18 Series I	12-May-17	12-May-23	12-Apr-23	2-May-23
9	2017-18 Series II	28-Jul-17	28-Jul-23	27-Jun-23	18-Jul-23
10	2017-18 Series III	16-Oct-17	16-Apr-23	16-Mar-23	6-Apr-23
11	2017-18 Series IV	23-Oct-17	23-Apr-23	23-Mar-23	13-Apr-23
12	2017-18 Series V	30-Oct-17	30-Apr-23	29-Mar-23	20-Apr-23
13	2017-18 Series VI	6-Nov-17	6-May-23	6-Apr-23	26-Apr-23
14	2017-18 Series VII	13-Nov-17	13-May-23	13-Apr-23	3-May-23
15	2017-18 Series VIII	20-Nov-17	20-May-23	20-Apr-23	10-May-23
16	2017-18 Series IX	27-Nov-17	27-May-23	27-Apr-23	17-May-23
17	2017-18 Series X	4-Dec-17	4-Jun-23	4-May-23	24-May-23
18	2017-18 Series XI	11-Dec-17	11-Jun-23	11-May-23	31-May-23
19	2017-18 Series XII	18-Dec-17	18-Jun-23	18-May-23	8-Jun-23
20	2017-18 Series XIII	26-Dec-17	26-Jun-23	26-May-23	16-Jun-23
21	2017-18 Series XIV	1-Jan-18	1-Jul-23	1-Jun-23	21-Jun-23
22	2018-19 Series I	4-May-18	4-May-23	3-Apr-23	24-Apr-23

Premature withdrawal
The bond's tenor is eight years, although, after the fifth year from the date of issuance, early encashment or redemption of the bond is permitted. If the bond is maintained in demat form, it can be traded on exchanges.

When can you prematurely withdraw Sovereign Gold Bonds?
Investors can contact the concerned bank, SHCIL offices, post office, or agent thirty days before the payment date in the event of early redemption. Premature redemption requests will only be
considered if the investor contacts the relevant bank or post office at least one day before the payment date.

Sovereign Gold Bonds tax rules
The interest on the bonds will be taxable in accordance with the rules of the Income-tax Act of 1961. TDS is not applicable to the bond. The capital gains tax on SGB redemption has been exempted. According to the RBI website, "The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond."

Sovereign Gold Bonds: Minimum and maximum limit
The Sovereign Gold Bonds are issued in denominations of one gram of gold and multiples thereof. The minimum investment in the SGB will be one gram and the maximum subscription limit
shall be four kilograms for individuals, four kilograms for Hindu Undivided Families (HUF), and twenty kilograms for trusts and other similar institutions.

Sovereign Gold Bonds: What are the procedures involved during redemption?
The bond's upcoming maturity will be disclosed to the investor one month before that date. The maturity funds will be credited to the bank account specified in the records on the date of maturity.
Investors must inform the bank/SHCIL/PO of any changes to any details, such as account numbers or email addresses.

Sovereign Gold Bonds: Benefits
According to the RBI website, "The quantity of gold for which the investor pays is protected since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held
in the books of the RBI or demat form eliminating the risk of loss of scrip etc."