Sovereign Gold Bond Premature Redemption: RBI releases calendar, details of tranches; know how to do it?

Sovereign Gold Bond Premature Redemption: The Reserve Bank of India (RBI) has released dates of premature redemption of Sovereign Gold Bonds (SGB). The Central Bank, through a release has listed the details of tranches falling due for premature redemption during H1 of 2022-23 i.e. from 1 April, 2022 up to 30 September, 2022 along with the window for submission of request for premature redemption.

Premature redemption of the Sovereign Gold Bonds (SGBs) is permitted after five year from the date of issue of such bond, on the date on which the next interest is payable.

SGP Premature Redemption: How to do it? 

- The request for pre-mature redemption shall be submitted to the Receiving Offices (RO) or Depository through DP (in case of dematerialized securities) at least 10 days before the next interest payment date, according to RBI document.

- If the RO/Depository Participant/Depository can call for additional documents, KYC proof, declaration etc.

- The request shall be scrutinized to verify the correctness of the particulars and may be submitted to RBI through the E-Kuber Portal at least four days before the due date of interest.

- On maturity and in case of premature redemption, the bonds shall be redeemed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of previous week (Monday to Friday) for SGBs issued under tranche 1 to 9 and previous three working days for tranches issued thereafter at the rate published by the India Bullion and Jewellers Association Limited.

- The redemption proceeds shall be credited to the bank account of the customer.