RBI Releases Premature Redemption Calendar for 33 SGB Tranches

The Reserve Bank of India (RBI) on February 23 released the schedule for premature redemption of Sovereign Gold Bonds (SGBs) that will become eligible between April 1 and September 30.

Under the consolidated procedural guidelines dated October 22, 2021, investors are allowed to opt for premature redemption of SGBs after completing five years from the date of issuance, even though the bonds carry an eight-year maturity period.

33 Tranches Eligible in Upcoming Window

As per the calendar, 33 tranches issued between 2018-19 and 2021-22 will qualify for early redemption during the six-month period. These include issuances starting from 2018-19 Series II (issued October 23, 2018) through to 2021-22 Series VI (issued September 7, 2021).

Key Dates for Redemption

The earliest tranche in the upcoming window, 2018-19 Series II, will be eligible for premature redemption on April 23, 2026. Investors can submit their requests between March 23, 2026, and April 13, 2026.

At the other end of the schedule, 2019-20 Series X will mature for premature redemption on September 11, 2026. The submission window for this tranche will remain open from August 11, 2026, to September 1, 2026.

How Can Investors Apply?

Investors may submit redemption requests through designated receiving offices, depositories such as NSDL and CDSL, or via the RBI Retail Direct platform. Applications must be filed within the specified submission window for each tranche.

The central bank noted that redemption dates could be revised in the event of unscheduled holidays. Investors intending to exit before maturity have been advised to carefully track the submission windows applicable to their respective tranches.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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