New Delhi: The Reserve Bank of India (RBI) has announced the dates for the early redemption of Sovereign Gold Bonds (SGBs) issued between May 2017 and May 2020.
The central bank plans to redeem 30 SGBs between October 11, 2024, and February 7, 2025. The redemption price will be determined based on the average gold price over the three days leading up to the maturity date.
Investors who wish to redeem their bonds early can submit their requests during a 20-day window. Once a redemption request is submitted, the redemption amount, along with any interest accrued, will be credited to the investor’s account within 10 days.
The first redemption period is set for the SGBs issued on May 12, 2017. This period will run from October 11, 2024, to November 2, 2024, with the redemption amount being deposited into the investor’s account on November 12, 2024.
Although SGBs have an 8-year maturity period, investors have the option to request early redemption after 5, 6, or 7 years. These bonds, which are backed by the government and valued in grams of gold, offer a safe alternative to owning physical gold.
SGBs are available in denominations starting from one gram, with a minimum investment of one gram. Individual investors can purchase up to 4 kg per financial year, while trusts and other government-recognized entities can invest up to 20 kg annually.
