Sovereign Gold Bond scheme: RBI issues calendar for premature redemption during Oct 2023 to March 2024

The Reserve Bank of India (RBI) has issued calendar for premature withdrawal of several tranches of sovereign gold bonds (SGB). In a press release, the central bank provided the details of tranches falling due for premature redemption during the period October 01, 2023 to March 31, 2024, along with the window available for submission of request for premature redemption.

The RBI, however, said that the mentioned dates may undergo a change in case of unscheduled holidays.

“Investors are advised to take note of the period for submission of requests for redemption of SGB, in case they choose to redeem their holdings before maturity,” RBI said.

Sovereign gold bonds or SGBs are issued by the government, for which investors get a holding certificate. It comprises government securities denominated in gold wherein investors are required to pay the issue price in cash.

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates.

In case of premature redemption, investors can approach the concerned bank/SHCIL offices/post office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date, according to RBI.