There is important news for people investing in Sovereign Gold Bond (SGB). The Reserve Bank of India (RBI) has released the premature redemption schedule for June 2026. Investors who had invested in various SGB series issued between 2019 to 2021 can now redeem their bonds before maturity as per the prescribed rules.
RBI has clarified that investors will have to submit their redemption requests within the prescribed time limit. Application can be made through Bank, Post Office, NSDL, CDSL or RBI Retail Direct platform. Applications will not be accepted if the deadline is missed.
Redemption of these series will happen in June 2026
As per the RBI calendar, premature redemption of 2021-22 Series II will take place on June 1, 2026. Applications for this could be made from 30 April to 22 May 2026. Whereas the redemption of 2021-22 Series III is scheduled for June 8, 2026, applications for which were accepted from May 8 to May 29, 2026. Redemption for 2019-20 Series VII will be on June 10 and Redemption for 2019-20 Series I will be on June 11, 2026. Apart from this, investors of 2020-21 Series III will be able to redeem their bonds on June 16, 2026. RBI has also said that change in dates is possible in case of any unexpected holiday.
What is Sovereign Gold Bond?
Sovereign Gold Bond is an investment instrument issued by RBI on behalf of the Government of India. It is denominated in grams of gold and is considered an alternative to buying physical gold. The investor not only gets the benefit of increase in the price of gold, but also gets fixed interest.
How is the redemption price determined?
The redemption price of SGB is decided based on the price of gold of 999 purity. As per RBI rules, the average closing price of the three working days preceding the redemption is taken as the basis. This price is issued by India Bullion and Jewelers Association (IBJA).
Investors get 2.5% annual interest
On Sovereign Gold Bond, investors get a fixed interest rate of 2.5 percent per annum on the initial investment amount. This interest is deposited directly into the bank account every six months. The final interest payment is made along with the principal at the time of maturity or redemption of the bond.
According to RBI, a total of 33 SGB series will be eligible for premature redemption in FY 2026-27. In such a situation, investors must check their series and the last date of application, so that they can avail the benefit of redemption on time.
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