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RBI Announces Dates For Premature Redemption of Sovereign Gold Bonds; Know Details Here

The RBI’s sovereign gold bond buyback window dates have been announced. Mark these dates in your calendar in case you wish to redeem these bonds before maturity.

RBI Announces Dates For Premature Redemption of Sovereign Gold Bonds; Know Details Here
Reserve Bank of India, RBI

The Reserve Bank of India has released dates for the premature withdrawal of Sovereign Gold Bonds (SGB) issued under different tranches. The RBI had through a press release listed out the details of the SGB tranches, which were falling due for premature redemption during H1 of 2022-23, i.e., from April 1, 2022 to September 30, 2022, along with a window for submission of request for premature redemption. 

Sovereign Gold Bonds
Sovereign Gold Bonds

How To Pre-Maturely Redeem SGBs?

An SGB is a type of gold bond issued by the central government, and has a lock-in period of eight years. However, if investors wish, they can redeem their bonds bought at specific intervals from the fifth year onwards. For instance, suppose you subscribed to the 2017-2018 Series II, so in 2022, you will complete five years of investment. So now, either you can wait for three more years to redeem your SGBs, or, redeem them now at the announced RBI buyback window.

The redemption price of the respective SGBs will be based upon the simple average closing gold price of 999 purity, which is published by the India Bullion and Jewellers Association Ltd (IBJA) during the week (Monday-Friday) preceding the date of redemption of the respective bond. The RBI will notify about the specific price as and when the time comes for premature redemption of those bonds.

Procedures Involved In SGB Redemption

  • If you are holding your SGBs in non-demat mode, then fill up the redemption form at your nearest Receiving Office (RO), and submit it at least 10 days before the next interest payment date.
  • If you are holding the SGBs in demat mode, then submit the redemption form to your respective Depository Participant (DP).
  • You will also have to comply with any additional documents, KYC proof, or declaration that the Depository Participant or Receiving Office may ask for.
  • The filled-out form will then have to be submitted by the DP or RO at least four days before the due date of interest to the RBI, by using the E-Kuber Portal. They will also verify and thoroughly scrutinise the details specified in the redemption form by the respective investor. 
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