Synopsis
The RBI released details about the SGB tranches that would be prematurely redeemed between April 1, 2023, and September 30, 2023, as well as the deadline for submitting requests for such a redemption.
Getty ImagesThe Reserve Bank of India (RBI) has set dates for the premature withdrawal of several tranches of Sovereign Gold Bonds (SGB). The RBI issued a press release outlining the details of the SGB tranches scheduled for premature redemption from April 1, 2023, to September 30, 2023, as well as a window for submitting requests for premature redemption.
SGBs are government securities denominated in grams of gold. They can be considered substitutes for holding physical gold.
According to the RBI press release dated February 28, 2023, "the details of tranches falling due for premature redemption during the period April 01, 2023, to September 30, 2023, along with the window available for submission of the request for premature redemption by the investors are as under."
| Sl. No | SGB Series | Issue Date | Date of coupon payment | Dates for submitting the request for premature redemption by the investors to the Receiving Offices/NSDL/CDSL/RBI Retail Direct | |
| From | To | ||||
| 1 | 2015-I | 30-Nov-15 | 30-May-23 | 29-Apr-23 | 20-May-23 |
| 2 | 2016-I | 8-Feb-16 | 8-Aug-23 | 7-Jul-23 | 28-Jul-23 |
| 3 | 2016-II | 29-Mar-16 | 29-Sep-23 | 29-Aug-23 | 20-Sep-23 |
| 4 | 2016-17 Series I | 5-Aug-16 | 5-Aug-23 | 5-Jul-23 | 25-Jul-23 |
| 5 | 2016-17 Series II | 30-Sep-16 | 30-Sep-23 | 30-Aug-23 | 20-Sep-23 |
| 6 | 2016-17 Series III | 17-Nov-16 | 17-May-23 | 17-Apr-23 | 8-May-23 |
| 7 | 2016-17 Series IV | 17-Mar-17 | 17-Sep-23 | 17-Aug-23 | 7-Sep-23 |
| 8 | 2017-18 Series I | 12-May-17 | 12-May-23 | 12-Apr-23 | 2-May-23 |
| 9 | 2017-18 Series II | 28-Jul-17 | 28-Jul-23 | 27-Jun-23 | 18-Jul-23 |
| 10 | 2017-18 Series III | 16-Oct-17 | 16-Apr-23 | 16-Mar-23 | 6-Apr-23 |
| 11 | 2017-18 Series IV | 23-Oct-17 | 23-Apr-23 | 23-Mar-23 | 13-Apr-23 |
| 12 | 2017-18 Series V | 30-Oct-17 | 30-Apr-23 | 29-Mar-23 | 20-Apr-23 |
| 13 | 2017-18 Series VI | 6-Nov-17 | 6-May-23 | 6-Apr-23 | 26-Apr-23 |
| 14 | 2017-18 Series VII | 13-Nov-17 | 13-May-23 | 13-Apr-23 | 3-May-23 |
| 15 | 2017-18 Series VIII | 20-Nov-17 | 20-May-23 | 20-Apr-23 | 10-May-23 |
| 16 | 2017-18 Series IX | 27-Nov-17 | 27-May-23 | 27-Apr-23 | 17-May-23 |
| 17 | 2017-18 Series X | 4-Dec-17 | 4-Jun-23 | 4-May-23 | 24-May-23 |
| 18 | 2017-18 Series XI | 11-Dec-17 | 11-Jun-23 | 11-May-23 | 31-May-23 |
| 19 | 2017-18 Series XII | 18-Dec-17 | 18-Jun-23 | 18-May-23 | 8-Jun-23 |
| 20 | 2017-18 Series XIII | 26-Dec-17 | 26-Jun-23 | 26-May-23 | 16-Jun-23 |
| 21 | 2017-18 Series XIV | 1-Jan-18 | 1-Jul-23 | 1-Jun-23 | 21-Jun-23 |
| 22 | 2018-19 Series I | 4-May-18 | 4-May-23 | 3-Apr-23 | 24-Apr-23 |
Premature withdrawal
The bond's tenor is eight years, although, after the fifth year from the date of issuance, early encashment or redemption of the bond is permitted. If the bond is maintained in demat form, it can be traded on exchanges.
When can you prematurely withdraw Sovereign Gold Bonds?
Investors can contact the concerned bank, SHCIL offices, post office, or agent thirty days before the payment date in the event of early redemption. Premature redemption requests will only be
considered if the investor contacts the relevant bank or post office at least one day before the payment date.
Sovereign Gold Bonds tax rules
The interest on the bonds will be taxable in accordance with the rules of the Income-tax Act of 1961. TDS is not applicable to the bond. The capital gains tax on SGB redemption has been exempted. According to the RBI website, "The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond."
Sovereign Gold Bonds: Minimum and maximum limit
The Sovereign Gold Bonds are issued in denominations of one gram of gold and multiples thereof. The minimum investment in the SGB will be one gram and the maximum subscription limit
shall be four kilograms for individuals, four kilograms for Hindu Undivided Families (HUF), and twenty kilograms for trusts and other similar institutions.
Sovereign Gold Bonds: What are the procedures involved during redemption?
The bond's upcoming maturity will be disclosed to the investor one month before that date. The maturity funds will be credited to the bank account specified in the records on the date of maturity.
Investors must inform the bank/SHCIL/PO of any changes to any details, such as account numbers or email addresses.
Sovereign Gold Bonds: Benefits
According to the RBI website, "The quantity of gold for which the investor pays is protected since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held
in the books of the RBI or demat form eliminating the risk of loss of scrip etc."
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