Sovereign Gold Bonds: RBI announces premature redemption dates for April-September 2024

The Reserve Bank of India (RBI) has released details regarding the premature redemption of Sovereign Gold Bond (SGB) tranches scheduled for the period of April 2024 to September 2024. The central bank has provided a window for investors to submit requests for premature redemption, along with important dates for coupon payments.

As outlined in the Consolidated Procedural Guidelines on the Sovereign Gold Bond (SGB) Scheme, premature redemption is permissible after five years from the date of issue of the bonds.

Investors should take note that the mentioned dates are subject to change in case of unscheduled holidays, RBI stated.

In the event of early encashment or redemption, investors can approach the concerned bank, SHCIL offices, post office, or agent thirty days before the coupon payment date.

It is crucial to submit the request at least one day before the coupon payment date for the premature redemption to be entertained.

Sovereign Gold Bonds are government securities denominated in gold, issued by the government, and come with a holding certificate for investors.

While the bond has a tenor of 8 years, premature redemption is allowed after the fifth year from the date of issue on coupon payment dates.

In case of successful premature redemption, the proceeds are credited to the customer’s bank account provided at the time of applying for the bond, as per the guidelines set by the Reserve Bank of India.