Premature Redemption Of SGB 2019-20 Series V Due Today: Check Other Application Windows To Open in October

The Reserve Bank of India (RBI) announced the premature redemption price of Sovereign Gold Bond 2017-18 Series XII issued on  October 15, 2019. The premature redemption date falls on October 15, 2024, as premature redemption is permitted after the fifth year of issue.

These bonds have a maturity tenure of 8 years and offer a fixed interest rate of 2.50 per cent, paid bi-annually until maturity.

RBI announced that the redemption price for SGB 2019-20 Series V will be Rs 7,549, calculated based on the simple average of the closing gold price (999 purity) on the three previous business days from the redemption date.

The redemption price of SGB is calculated based on the simple average of closing gold price for the three business days i.e., October 10, October 11 and October 14, 2024, as reported by the India Bullion and Jewellers Association Ltd (IBJA), the release said.

How To Make Premature Redemption?

To prematurely withdraw an SGB, RBI mandates the investor to submit a request to the regional office (RO) or depository at least 10 days before the interest payment falls due. The request will be reviewed for accuracy and submitted to the RBI via the E-Kuber Portal at least four days before the interest due date.

For investments held outside of a demat account, premature redemption procedures can be processed through a bank, SHCIL, post office, or agent if the investor applies within a 30-day window but at least one day before the scheduled premature redemption date.

As per RBI's premature redemption calendar, the application window for two more SGBs is slated to open in October. Starting October 19, 2024, a ten-day window of SGB 2017-18 Series VIII will open. Further, the application window for SGB 2017-18 Series IX issued on November 27, 2017, will open on October 25, 2024. In addition to them, nine more SGBs will also have their premature application window falling due in 2024.