Sovereign gold bond (SGB) redemption dates: RBI announces premature redemption dates for April-September 2024

SGB premature redemption dates: The Reserve Bank of India (RBI) on Wednesday, February 28, announced the dates for premature redemption of the Sovereign Gold Bond (SGB) scheme for the April-September period.

The central bank, which issues the bonds linked to the market price of the yellow metal on behalf of Government of India, indicated the timeline for investors to submit requests for premature redemption, along with dates for coupon payments.

SGBs come with a lock-in period of eight years with an option to withdraw funds fater the completion of first five years under certain conditions.

(Source: RBI)

Investors should take note that the mentioned dates are subject to change in case of unscheduled holidays, the RBI added.

However, investors should note that the mentioned dates may undergo a change in case of unscheduled holidays.

In case investors choose to redeem their holdings before maturity, they are advised to take note of the period for submission of requests for the redemption of the gold bonds.

What is SGB?

SGBs are government securities denominated in grams of gold and are substitutes for holding physical gold. Investors have to pay the issue price in cash, and the bonds will be redeemed in cash on maturity.

As per the guidelines set by the Reserve Bank of India, in case of successful premature redemption, the proceeds are credited to the bank account of the customer provided at the time of applying for the bond.

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