Holders of Sovereign Gold Bonds (SGB) 2021-22 Series VII may redeem early on November 2, 2026, the first interest payment date after five years from issue. Redemption price will be based on the simple average of weekly closing prices.
Sovereign Gold Bond Scheme: Early Redemption Window Opens
The Reserve Bank of India has confirmed that the premature redemption facility for Sovereign Gold Bond (SGB) 2021–22 Series VII, issued on November 2, 2021, will be available on November 2, 2026. This date marks the first interest payment date after the completion of the fifth year from issuance, in accordance with Government of India notification F.No. 4(5)-B(W&M)/2021 dated October 21, 2021.
Under the SGB Scheme, premature redemption is permitted only from the beginning of the sixth year onward, and only on interest payment dates. The redemption price will be calculated based on the simple average of the closing price of gold grams during the week preceding the redemption date, as published by the India Bullion and Jewelers Association Ltd (IBJA).
This clarification enables eligible investors to plan early exits from the bond without waiting until maturity. The provision balances investor liquidity needs with the government’s objective of encouraging medium- to long-term investment in sovereign-backed gold instruments.
