The Reserve Bank of India (RBI) has announced a schedule for the premature redemption of Sovereign Gold Bonds (SGBs), giving investors the option to redeem these bonds before their eight-year maturity date. This new announcement is valid from October 1, 2023, until March 31, 2024.
The central bank has announced the specifics of tranches scheduled for premature redemption between October 1, this year and March 31 next year, as well as the window for submitting requests for premature redemption. However, the RBI has stated that the above-mentioned dates may vary due to unforeseen vacations.
“Investors are advised to take note of the period for submission of requests for redemption of SGB, in case they choose to redeem their holdings before maturity,” RBI said in a statement.
What Are Sovereign Gold Bonds (SGBs)?
SGBs are an excellent alternative to physical gold investment. You can benefit from capital appreciation as well as annual interest with these bonds. The minimum investment in the bond is one gram, with a maximum limit of four kilogrammes every fiscal year for people. Additionally, individuals, trusts, universities, Hindu Undivided Families (HUFs), and charity institutions are all eligible investors.
Premature Redemption Dates For SGB From October 2023 to March 2024
The deadlines for investors to file requests for premature redemption for SGB 2017-18 Series III, which was issued on October 16, 2017, will be from September 16, 2023, to October 6, 2023.
The dates for submitting a request for premature redemption for SGB 2017-18 Series IV, which was issued on October 23, 2017, will be from September 23, 2023, to October 13, 2023.
The deadline for making a request for premature redemption by investors for SGB 2017-18 Series V, which was issued on October 30, 2017, will be September 30, 2023, to October 20, 2023.
Sovereign Gold Bonds (SGBs) Are Taxed: Read How And Why?
The interest rate on Sovereign Gold Bonds (SGBs) is fixed at 2.50 per cent of the issuance price and is credited to the investor’s bank account every six months. It is to be noted that the interest on Sovereign Gold Bonds is fully taxed. Profits earned on the redemption of these bonds, however, are totally tax-free, whether redeemed at the conclusion of the original eight-year term or by early redemption after five years.
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