As per RBI guidelines, investors can request premature redemption after holding the bonds for five years from the issue date. Redemption requests should be submitted within the designated windows through Receiving Offices, National Securities Depository Ltd., Central Depository Services Ltd., or RBI Retail Direct.
The first redemption period will begin on Oct. 11, 2024, for SGBs issued on May 12, 2017, closing on Nov. 2, 2024, with payments scheduled for Nov. 12, 2024.
Price of 24 karat gold stood at Rs 7,124 per gram on Aug. 24. Investors can redeem their bonds in cash or physical gold.
SGBs are government-backed securities priced in grams of gold, providing a cash alternative to physical gold ownership. Investors purchase these bonds at an issue price and receive cash upon maturity. Issued by the RBI on behalf of the Government of India, these bonds offer a hassle-free investment in gold.