“In terms of GOI notification F.No. 4(4)-B(W&M)/2020 dated April 13, 2020 (SGB 2020-21 Series I – Issue date April 28, 2020) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranche shall be on October 28, 2026,” said RBI.

Sovereign Gold Bond Scheme: How Much Money Will You Get?

Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).

Accordingly, the redemption price for premature redemption due on October 28, 2026, shall be Rs 14,159 (Rupees Fourteen Thousand One Hundred and Fifty-Nine Only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., October 23, October 26, and October 27, 2026, RBI added.

What is Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

How Is Sovereign Gold Bond Scheme being sold?

The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Who can buy Sovereign Gold Bond Scheme?

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.