RBI Releases SGB Early Withdrawal Price of Rs 7,325 Per Unit and Premature Redemption Prices

The fixed rate for the early redemption of sovereign Gold Bonds (SGB) from the 2017–18 Series IV and 2018–19 Series II tranches was announced by the Reserve Bank of India (RBI) on April 23. Following five years from the bond’s issuance date and the dates on which interest is paid, investors in this series are able to take money out of the bonds before they mature. The premature price per unit is Rs 7,325 given by the company. The announcement’s requirements are in accordance with notifications issued by the Indian government on October 6, 2017, and October 8, 2018. The average closing price of 999-purity gold, as reported by India Bullion and Jewelers Association Limited (IBJA), three business days prior to the redemption date, determines the SGB redemption price. On April 23, 2024, the redemption price for early redemption will be Rs 7,325 per SGB unit. The price is determined by averaging the closing gold prices on April 18, 19, and 22.

Government-issued securities known as sovereign Gold Bonds serve as a substitute for actual gold. Cash is required from investors for the issuance price, and at maturity, the bond will be redeemed for cash. The RBI is issuing these bonds on behalf of the Indian government.

In November 2015, the government launched the SGB scheme. Purchasing sovereign Gold Bonds yields an annual interest rate of 2.5 percent. Together with the principle, the final interest payment is payable upon maturity. A individual may purchase up to 4 kilograms of bonds under the Sovereign Gold Bond Scheme within a fiscal year. One gram is the minimal amount that must be invested.

An eight-year sovereign gold bond is its maturity term. Investors may take their money out prior to the investment maturing. It becomes operative just five years later. Prior to an early redemption, investors must hold onto their bonds for a minimum of five years. All banks, the Stock Holding Corporation of India Limited (SHCIL), post offices, and reputable stock exchanges, such as the NSE and BSE, are outlets for purchasing these bonds. Please be aware that small financing institutions and payment banks do not sell them.