The RBI has set November 2, 2026, as the redemption date for premature redemption of Sovereign Gold Bond (SGB) 2021-22 Series VII. Redemption price will be based on a simple average of 30-day prevailing market rates.
The Reserve Bank of India (RBI), in coordination with the Ministry of Finance, has announced that the due date for premature redemption of the Sovereign Gold Bond (SGB) 2021-22 Series VII is November 2, 2026. This aligns with the scheme rules permitting premature exit after five years, coinciding with interest payment dates.
The SGB 2021-22 Series VII was issued on November 2, 2021, and bondholders opting for early redemption are entitled to proceed as per GOI notification F.No. 4(5)-B(W&M)/2021. The redemption price will be determined based on the simple average of the 30-day preceding prevailing market prices for gold.
This mechanism ensures fairness and transparency in valuation. Practitioners advising clients on tax or wealth planning should note that premature redemptions may have capital gains implications under the Income Tax Act, 1961, and redemption proceeds are governed by RBI and SEBI regulations.
