Investors holding eligible Sovereign Gold Bond (SGB) tranches issued between 2019 and 2021 have multiple opportunities to opt for premature redemption between July and September 2026, according to the Reserve Bank of India's (RBI) latest redemption schedule. The upcoming window covers several SGB series that have completed the mandatory five-year holding period, allowing investors to exit before the bonds' original eight-year maturity.

Under the SGB scheme, investors become eligible for premature redemption only after five years from the date of issue. However, redemption is permitted only on the scheduled interest payment dates, and investors must submit their requests within the window specified by the RBI through the bank, post office or other authorised institution from where the bonds were purchased.

Which SGB tranches are eligible?

The first redemption opportunity during the period is for 2019-20 Series VIII, issued on January 21, 2020. The bonds are eligible for premature redemption on July 21, 2026, while requests can be submitted between June 20 and July 13.

This will be followed by 2019-20 Series IX, redeemable on August 11, 2026, and 2019-20 Series X, redeemable on September 11, 2026.

Among the 2020-21 issuances, investors in Series IV, Series V, Series VI, Series IX, Series X, Series XI and Series XII will also become eligible for redemption during July, August and September.

Similarly, investors holding 2021-22 Series IV, Series V and Series VI can also opt for premature redemption. The final tranche in the current schedule is 2021-22 Series VI, issued on September 7, 2021, which will become eligible for redemption on September 7, 2026. Investors in this tranche can submit their requests between August 7 and August 28, 2026.

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How is the redemption price decided?

The redemption price is not fixed at the time of investment. Before every redemption date, the RBI calculates the value based on the simple average of the closing price of 999 purity gold during the previous three business days, using prices published by the India Bullion and Jewellers Association (IBJA). The central bank announces the final redemption price separately ahead of each redemption date.

Apart from capital appreciation linked to gold prices, SGB investors also receive 2.5% annual interest, paid semi-annually on the original investment amount throughout the holding period.

Previous redemption delivered over 219% returns

The recent redemption of SGB 2020-21 Series III demonstrates how rising gold prices have boosted investor returns. The tranche, issued on June 16, 2020, became eligible for premature redemption on June 16, 2026.

The bond was issued at ₹4,627 per gram for online subscribers and ₹4,677 per gram for offline investors. RBI fixed the premature redemption price at ₹14,774 per gram, resulting in an absolute return of around 219.3% for investors who had purchased the bonds online, excluding the interest earned over six years.

An investor who invested ₹1 lakh at the time of issue would have seen the investment grow to approximately ₹3.19 lakh, apart from the cumulative interest received during the holding period.

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Should investors redeem?

Financial experts say the decision to redeem should depend on an investor's liquidity needs, portfolio allocation and outlook on gold prices. Investors requiring funds or looking to book profits may consider premature redemption, while those seeking continued exposure to gold can hold the bonds until the full eight-year maturity, when they will receive the prevailing gold price along with the final interest payment.

Although the government has discontinued fresh issuances of Sovereign Gold Bonds, existing investors will continue to receive interest and redemption benefits according to the original terms. With gold prices remaining elevated, the upcoming redemption windows offer eligible investors an opportunity to evaluate whether to lock in gains or remain invested for the long term.

Change in SGB taxation from April 1

From April 1, 2026, only investors who subscribe to Sovereign Gold Bonds directly during the RBI's primary issuance and hold them until maturity will enjoy capital gains tax exemption. Investors who buy SGBs from the secondary market will now have to pay applicable capital gains tax on redemption, reducing the tax advantage previously available.

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Published on: Jun 27, 2026 3:37 PM IST