There is good news for Sovereign Gold Bond ( SGB ) investors. If investors want to redeem their bonds ahead of schedule, they can. Actually, the tenure of Sovereign Gold Bond is 8 years.
This means that they mature only after eight years. But, investors are allowed to withdraw their money before maturity. But, this permission is available only after 5 years. This means that investors have to maintain their investment in these bonds for at least five years. RBI has released the calendar for premature redemption of SGBs.
Investors of these series will be able to redeem
Investors in SGB 2017-18 Series III will be able to redeem their bonds between September 16, 2023 and October 6, 2023. These bonds were issued to investors on October 16, 2017. Investors investing in SGB 2017-18 Series IV will be able to redeem their bonds between September 23, 2023 and October 13, 2023. Investors in SGB 2017-18 Series V will be able to redeem their bonds between September 30, 2023 and October 20, 2023. The bonds of this series were issued to investors on October 30, 2017.
What will be the process?
RBI has said that the mentioned dates may change due to unscheduled holidays. The central bank said that if investors want to redeem their bonds before maturity, then it is important for them to understand the redemption calendar properly.
Sovereign gold bonds are issued by the government. A certificate is issued by the government to the investors investing in it. Investors who wish to redeem their bonds prematurely may contact the concerned Bank/SHCIL Offices/Post Office/Agent Third Party. They will have to do this work before the coupon date.
2.5 percent interest annually
Investment in Sovereign Gold Bond gives 2.5 percent interest annually. This money is deposited in the investor’s bank account every six months. But, this interest income is taxable. But, the profit at the time of redemption is not taxable. The government had introduced Sovereign Gold Bonds to give an option to people investing in physical gold. The minimum investment for an investor is 1 gram. Maximum investment is allowed in 4 kg.
