(SGBs) have an 8-year tenure with a 5-year lock-in period, allowing for premature redemption after the fifth year on specified dates. Investors in Sovereign Gold Bonds (SGBs) who wish to exit the SGB scheme after 5 years should take note of the deadline to submit the premature redemption request.
The RBI has announced the last dates for premature redemption requests for eligible SGB tranches in April 2025. Failing to apply within the stipulated time could mean waiting until the next redemption cycle.
According to the RBI press release on February 21, premature redemption dates may undergo a change in case of unscheduled holiday(s). Investors are advised to take note of the period for the submission of requests for the redemption of SGB in case they choose to redeem their holdings during this premature redemption cycle.
SGBs premature redemption last date to apply in April 2025
There are three premature SGB tranches that are up for premature redemption in April 2025. The following three SGBs are due for premature redemption in April 2025:
SG 2017-18 Series III: The premature redemption date is set for April 16, 2025. SGB investors must submit their premature redemption requests to the Receiving Offices/NSDL/CDSL/RBI Retail Direct between March 17 and April 7, 2025.
SGB 2017-18 Series IV: The premature redemption date is set for April 23, 2025. Investors must submit their premature redemption requests to the Receiving Offices/NSDL/CDSL/RBI Retail Direct between March 24 and April 15, 2025.
SGB 2017-18 Series V:
The premature redemption date is set for April 30, 2025. Investors must submit their premature redemption requests to the Receiving Offices/NSDL/CDSL/RBI Retail Direct between March 31 and April 21, 2025.
SGB 2017-18 Series VI: The premature redemption date is set for May 6, 2025. Investors must submit their premature redemption requests to the Receiving offices/NSDL/CDSL/RBI Retail Direct between April 5 and April 28, 2025.
What investors need to do for premature redemption
Investors holding SGBs should review the redemption schedule carefully. Some of the Key actions include:
a) Identify the tranche to which your bonds belong by checking the issue date. This is the date when the bonds can be redeemed before maturity.
b) Ensure that your request for premature redemption is submitted by the deadline mentioned in the schedule.