RBI Issues Schedule For Premature Redemption Of SGBs From Oct 2025 To Mar 2026

This article provides a comprehensive overview of the Reserve Bank of India’s newly issued schedule for the premature redemption of Sovereign Gold Bonds (SGBs) between October 2025 and March 2026, a valuable liquidity option for long-term investors. It also explores what SGBs are, how investors have performed historically, and the broader implications of the government's recent decisions regarding the scheme.

What Are Sovereign Gold Bonds?

Sovereign Gold Bonds (SGBs) are government securities issued by the RBI on behalf of the Indian government, denominated in grams of gold. Imagine them as a digital locker of gold—without the hassle of storing physical bars. Instead of holding physical gold, investors hold a bond whose value mirrors gold prices, plus earn a fixed interest.

Since their launch in 2015, SGBs have offered dual benefits: capital appreciation based on gold prices, and a fixed interest rate, currently at 2.5% per annum, paid semi-annually.

Investors in earlier tranches have seen substantial gains. For instance, one series issued in January 2019 (Series V) has delivered over 205% return, even before considering the interest component.

Eligible Tranches and Windows for SGB Redemption

Below are three tables highlighting the SGB tranches eligible for premature redemption between October 2025 and March 2026. Each table is prefaced with introductory context and followed by a quick summary.

Read More – What is a Sovereign Gold Bond? Features, Benefits & How to Buy Online

2018–2019 Issuances

These bonds, issued between May 2018 and February 2019, become eligible for early redemption during Q4 2025 to early 2026:
 

Summary: Investors holding these bonds should note the rolling submission windows to apply via RBI-approved channels, allowing access about a month before redemption.

2019–2020 Issuances

Next are tranches issued from mid-2019, redeemable late 2025 to mid-2026:
 

Summary: These windows allow holders from 2019 to apply for early redemption according to their respective series timelines.

2020–2021 Issuances

Finally, a few early-2020 issuances are also part of the schedule:

Note: Detailed redemption schedules for all 2020–21 series are available; for instance, investors in Series I and others should check RBI publications and announcements for precise timelines.

Also Read - Sovereign Gold Bond vs. Gold ETF: Which will grow your ₹1,00,000 investment more?

How Is the Price of Sovereign Gold Bond Redemption Calculated?

The redemption value of SGBs is determined by the simple average of the closing price of 999 purity gold, as published by the India Bullion & Jewellers Association (IBJA) over the three working days preceding the redemption date—ensuring fair alignment with prevailing gold market rates.

Does the Indian Government Offer an Annual 2.5% Interest on Sovereign Gold Bonds?

Yes, SGBs carry a fixed 2.5% per annum interest, distributed semi-annually to investors until redemption or maturity. This interest, combined with gold price-driven capital gains, enhances overall returns.

Indian Government Discontinued This Scheme Despite 200% Returns

What – Why – When – Where – How?
 

• What happened? The SGB scheme, once a flagship program aimed at reducing India’s dependence on physical gold imports, was discontinued—no new tranches have been issued since February 2024.
   
• Why? The scheme had become an expensive borrowing tool for the government amid soaring gold prices, making it less viable for fiscal management.
   
• When? Discontinuation was enacted in 2024, with the last issuance in early 2024; existing bond redemptions continue as per schedule.
   
• Where and How? While no new subscriptions are open, existing instruments remain valid, and premature redemption options for eligible tranches remain in force.

Impact of Discontinuation
 

• For investors: No new investment opportunities in SGBs; continued returns and early redemptions remain accessible.
   
• For the economy: Limited the government's ability to channel gold demand into paper assets, potentially driving more demand back to physical gold markets.
   
• Overall: The move shifts investment interest toward alternative instruments offering good risk-adjusted returns, while winding down fiscal exposure to rising gold-linked debt.
   

Do Sovereign Gold Bonds Give Approximately 200% Return on Investment?

Overview & Comparison Table

The SGB scheme launched in 2015 and, across its run, issued more than 67 tranches mobilizing nearly 147 tonnes of gold by March 2025. Each year, thousands of investors participated via public issuances.
 

Summary: While returns vary by series and timing, many early investors in SGBs have indeed seen returns in the 200%+ range (excluding interest), largely driven by sustained gold price appreciation.

Other Government Schemes with Good Returns:

• Public Provident Fund (PPF) – long-term, tax-free interest
   
• National Savings Certificates (NSC) – safe fixed returns
   
• Post Office Monthly Income Scheme (POMIS) – steady monthly payouts
   
• Sukanya Samriddhi Yojana (SSY) – high interest for girl child savings

Conclusion

The Reserve Bank of India’s new schedule for premature redemption of Sovereign Gold Bonds (Oct 2025 – Mar 2026) gives investors essential liquidity flexibility well before the standard eight-year maturity. SGBs, with their dual benefits of gold-mirroring returns and 2.5% fixed interest, have proven lucrative: many early investors in 2017–19 series have enjoyed over 200% capital appreciation, even before factoring in interest.

Although the scheme was discontinued post-2024—due to high fiscal costs—it remains a compelling investment tool for those who already hold it. For new investors, the focus may shift to other secure government-backed options like PPF, NSC, POMIS, and SSY, which offer dependable, if more modest, returns.

Overall, SGBs exemplified a unique mix of safety, convenience, and strong returns, especially during periods of rising gold prices—and remain a valuable part of many investors’ portfolios.

 

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