Sovereign Gold Bonds: RBI announces early redemptions for some SGBs – should investors redeem? – Times of India

Sovereign Gold Bonds: RBI announces early redemptions for some SGBs – should investors redeem? – Times of India



Sovereign Gold Bonds: The Reserve Bank of India (RBI) has declared early redemptions for 30 series of Sovereign Gold Bonds (SGBs) maturing between October 1, 2024, and March 31, 2025.
The central bank has provided a calendar from September 2024 to March 2025 for repurchasing the bonds that have completed five years, allowing investors an early withdrawal option.This buyback aligns with the terms specified during the bonds’ issuance.

RBI SBG early redemption calendar:

Sl. Tranche Issue Date Date of Coupon payment Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct
No. From To
1 2017-18 Series I 12-May-17 12-Nov-24 11-Oct-24 2-Nov-24
2 2017-18 Series II 28-Jul-17 28-Jan-25 27-Dec-24 18-Jan-25
3 2017-18 Series III 16-Oct-17 16-Oct-24 16-Sep-24 7-Oct-24
4 2017-18 Series IV 23-Oct-17 23-Oct-24 23-Sep-24 14-Oct-24
5 2017-18 Series V 30-Oct-17 30-Oct-24 30-Sep-24 21-Oct-24
6 2017-18 Series VI 6-Nov-17 6-Nov-24 5-Oct-24 28-Oct-24
7 2017-18 Series VII 13-Nov-17 13-Nov-24 11-Oct-24 4-Nov-24
8 2017-18 Series VIII 20-Nov-17 20-Nov-24 19-Oct-24 11-Nov-24
9 2017-18 Series IX 27-Nov-17 27-Nov-24 25-Oct-24 18-Nov-24
10 2017-18 Series X 4-Dec-17 4-Dec-24 4-Nov-24 25-Nov-24
11 2017-18 Series XI 11-Dec-17 11-Dec-24 11-Nov-24 2-Dec-24
12 2017-18 Series XII 18-Dec-17 18-Dec-24 18-Nov-24 9-Dec-24
13 2017-18 Series XIII 26-Dec-17 26-Dec-24 26-Nov-24 16-Dec-24
14 2017-18 Series XIV 1-Jan-18 1-Jan-25 30-Nov-24 23-Dec-24
15 2018-19 Series I 4-May-18 4-Nov-24 4-Oct-24 25-Oct-24
16 2018-19 Series II 23-Oct-18 23-Oct-24 23-Sep-24 14-Oct-24
17 2018-19 Series III 13-Nov-18 13-Nov-24 11-Oct-24 4-Nov-24
18 2018-19 Series IV 1-Jan-19 1-Jan-25 30-Nov-24 23-Dec-24
19 2018-19 Series V 22-Jan-19 22-Jan-25 21-Dec-24 13-Jan-25
20 2018-19 Series VI 12-Feb-19 12-Feb-25 10-Jan-25 3-Feb-25
21 2019-20 Series I 11-Jun-19 11-Dec-24 11-Nov-24 2-Dec-24
22 2019-20 Series II 16-Jul-19 16-Jan-25 17-Dec-24 6-Jan-25
23 2019-20 Series III 14-Aug-19 14-Feb-25 15-Jan-25 4-Feb-25
24 2019-20 Series IV 17-Sep-19 17-Mar-25 15-Feb-25 7-Mar-25
25 2019-20 Series V 15-Oct-19 15-Oct-24 14-Sep-24 5-Oct-24
26 2019-20 Series VI 30-Oct-19 30-Oct-24 30-Sep-24 21-Oct-24
27 2019-20 Series VII 10-Dec-19 10-Dec-24 8-Nov-24 30-Nov-24
28 2019-20 Series VIII 21-Jan-20 21-Jan-25 21-Dec-24 13-Jan-25
29 2019-20 Series IX 11-Feb-20 11-Feb-25 10-Jan-25 1-Feb-25
30 2019-20 Series X 11-Mar-20 11-Mar-25 7-Feb-25 1-Mar-25

Source: ET

What should SCG investors do?

Investors are not obligated to sell the bonds back to the RBI, as the early redemption window is voluntary. According to an ET report, financial planners advise investors to hold these bonds until maturity due to the benefits they offer. They caution against the temptation to prematurely withdraw funds and invest them in equities.
Investors in the four tranches of SGBs that have completed their eight-year tenure have earned an average annualized return of 10.94%, which is tax-free for those who hold the bonds until maturity. Additionally, they have received an annual interest of 2.5%.
Since the introduction of the first tranche in November 2015, there have been a total of 67 tranches, with the most recent issued in February 2024. As of now, the government has not announced any new SGB issues for the current financial year.





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