RBI pronounces untimely redemption dates for Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds (SGBs) are issued for a tenure of eight years however one can redeem these gold bonds prematurely after 5 years. The untimely redemption window opens each six months.

The Reserve Bank of India (RBI) issued a calendar detailing SGB tranches untimely redemption in the course of the interval October 01, 2023, to March 31, 2024. 

However, it could be famous that the dates could bear a change in case of unscheduled vacation/s. Investors are suggested to pay attention to the interval for submission of requests for redemption of SGB, in case they select to redeem their holdings earlier than maturity, the central financial institution mentioned within the press launch.

RBI Announces Dates for Premature Redemption of Sovereign Gold Bonds, Providing Flexibility to Investors

SGB untimely redemption dates for October 2023 – March 2024 interval

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SGB untimely redemption dates for October 2023 – March 2024 interval (RBI)

For SGB 2017-18 Series III which was issued on October 16, 2017, the dates for submitting the request for untimely redemption by the buyers will begin from September 16, 2023, to October 6, 2023

For SGB 2017-18 Series IV which was issued on October 23, 2017, the dates for submitting the request for untimely redemption by the buyers will begin from September 23, 2023, to October 13, 2023.

For SGB 2017-18 Series V which was issued on October 30, 2017, the dates for submitting the request for untimely redemption by the buyers will begin from September 30, 2023, to October 20, 2023.
 

What are SGBs?

SGBs are the right different to funding in bodily gold. With these bonds, you’ll be able to take pleasure in capital appreciation and likewise earn curiosity yearly. The minimal funding within the bond is one gram with a most restrict of 4 kg for people every fiscal 12 months. Eligible buyers embody people, HUFs, trusts, universities, and charitable establishments. 

Interest on Sovereign Gold Bonds is paid @ 2.50% on the problem worth and is credited to your checking account on a half-yearly foundation. “The curiosity obtained on Sovereign Gold Bonds is totally taxable. As far as income made on the time of redemption of Sovereign Gold Bonds are involved, the identical is totally tax-free in your arms. This rule for income made on redemption applies, whether or not on the finish of the unique tenure of 8 years or on early redemption which is allowed after 5 years,” mentioned Mumbai-based tax and funding knowledgeable Balwant Jain.

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Updated: 01 Sep 2023, 02:46 PM IST