The Reserve Bank of India has published the premature redemption schedule for 32 Sovereign Gold Bond (SGB) tranches for FY 2026–27. Investors who have completed the mandatory five-year lock-in period can exercise early exit options on interest payment dates, benefiting from tax-exempt capital gains aligned with prevailing gold rates.
MUMBAI, India — August 22, 2026 — The Reserve Bank of India (RBI) has issued the official premature redemption calendar for Sovereign Gold Bond (SGB) schemes applicable for the financial year 2026–27. According to the central bank notification, investors holding specific tranches issued between FY 2017–18 and FY 2021–22 will be eligible to exercise early redemption options across 32 individual tranches upon completing their mandatory five-year lock-in period. This release provides vital liquidity timelines for retail investors, financial planners, and institutional debt holders looking to encash gold holdings based on prevailing market bullion prices.
Technical Redemption Framework and Tranche Eligibility
Sovereign Gold Bonds carry an official total maturity tenure of eight years from the date of issue. However, statutory terms governed by the Government of India permit bondholders an option for early redemption after five years, exercisable strictly on the semi-annual interest payment dates.
According to the central bank's operational schedule, investors wishing to exercise premature redemption must submit requests through their respective issuing entities—including commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, or recognized stock exchanges (NSE and BSE)—at least 30 days prior to the specified coupon payment date.
Eligibility Window: Bond series issued between 2017–18 Series III and 2021–22 Series IV fall under the FY 2026–27 redemption schedule.
Price Calculation Basis: The redemption price is determined based on the simple average closing price of 999 purity gold published by the India Bullion and Jewellers Association Limited (IBJA) for the three business days preceding the redemption date.
Payout Channel: Principal proceeds, along with accrued semi-annual interest (paid at 2.50% per annum on the initial investment value), are credited directly to the investor’s linked bank account.
Sovereign Gold Bond (SGB) Premature Redemption Calendar: FY 2026–27
Below is the complete list of all 32 SGB tranches eligible for premature redemption in FY 2026–27, along with their issue dates and scheduled early exit windows:
| Tranche Name | Original Issue Date | Scheduled Early Redemption Date |
| 2017-18 Series III | October 16, 2017 | October 16, 2026 / April 16, 2027 |
| 2017-18 Series IV | October 23, 2017 | October 23, 2026 / April 23, 2027 |
| 2017-18 Series V | October 30, 2017 | October 30, 2026 / April 30, 2027 |
| 2017-18 Series VI | November 06, 2017 | November 06, 2026 / May 06, 2027 |
| 2017-18 Series VII | November 13, 2017 | November 13, 2026 / May 13, 2027 |
| 2017-18 Series VIII | November 20, 2017 | November 20, 2026 / May 20, 2027 |
| 2017-18 Series IX | November 27, 2017 | November 27, 2026 / May 27, 2027 |
| 2017-18 Series X | December 04, 2017 | December 04, 2026 / June 04, 2027 |
| 2017-18 Series XI | December 11, 2017 | December 11, 2026 / June 11, 2027 |
| 2017-18 Series XII | December 18, 2017 | December 18, 2026 / June 18, 2027 |
| 2017-18 Series XIII | December 26, 2017 | December 26, 2026 / June 26, 2027 |
| 2017-18 Series XIV | January 01, 2018 | January 01, 2027 / July 01, 2027 |
| 2018-19 Series I | May 04, 2018 | November 04, 2026 / May 04, 2027 |
| 2018-19 Series II | October 23, 2018 | October 23, 2026 / April 23, 2027 |
| 2018-19 Series III | November 13, 2018 | November 13, 2026 / May 13, 2027 |
| 2018-19 Series IV | December 24, 2018 | December 24, 2026 / June 24, 2027 |
| 2018-19 Series V | January 22, 2019 | January 22, 2027 / July 22, 2027 |
| 2018-19 Series VI | February 12, 2019 | February 12, 2027 / August 12, 2027 |
| 2019-20 Series I | June 11, 2019 | December 11, 2026 / June 11, 2027 |
| 2019-20 Series II | July 16, 2019 | January 16, 2027 / July 16, 2027 |
| 2019-20 Series III | August 14, 2019 | February 14, 2027 / August 14, 2027 |
| 2019-20 Series IV | September 17, 2019 | March 17, 2027 / September 17, 2027 |
| 2019-20 Series V | October 15, 2019 | April 15, 2026 / October 15, 2026 |
| 2019-20 Series VI | October 29, 2019 | April 29, 2026 / October 29, 2026 |
| 2019-20 Series VII | December 10, 2019 | June 10, 2026 / December 10, 2026 |
| 2019-20 Series VIII | January 21, 2020 | July 21, 2026 / January 21, 2027 |
| 2019-20 Series IX | February 11, 2020 | August 11, 2026 / February 11, 2027 |
| 2019-20 Series X | March 11, 2020 | September 11, 2026 / March 11, 2027 |
| 2021-22 Series I | May 25, 2021 | November 25, 2026 / May 25, 2027 |
| 2021-22 Series II | June 01, 2021 | December 01, 2026 / June 01, 2027 |
| 2021-22 Series III | June 08, 2021 | December 08, 2026 / June 08, 2027 |
| 2021-22 Series IV | July 20, 2021 | January 20, 2027 / July 20, 2027 |
Impact on Retail Investors and Capital Markets
For retail investors and capital market participants, the premature redemption window offers a tax-efficient exit strategy depending on holding period and original purchase prices.
Under current provisions of the Income Tax Act, 1961, capital gains arising from the redemption of SGBs by an individual investor upon final or premature redemption through the RBI are entirely exempt from capital gains tax. However, if bonds are sold on secondary stock exchange platforms prior to redemption, normal long-term or short-term capital gains tax applies.
Official Sources Section
According to official operational guidelines published by the Reserve Bank of India (RBI) and official tax documentation from the Ministry of Finance, redemption requests must be submitted directly to receiving offices or depository participants (DPs) within designated submission windows prior to interest payout dates.
Quote Section
"According to officials from the central bank, investors holding dematerialized SGBs must submit their premature redemption requests via their respective depository participants at least one month before the scheduled coupon date."
Why It Matters
Publishing the annual premature redemption schedule ensures transparency for bondholders, allowing them to assess potential capital gains against physical gold market trends and make informed portfolio rebalancing decisions.
Key Facts at a Glance
Eligible Tranches: 32 distinct Sovereign Gold Bond series open for early redemption in FY 2026–27.
Mandatory Lock-in: 5 years completed from the date of original bond issue.
Tax Treatment: Complete capital gains tax exemption applies to premature redemption done directly through the RBI.
Pricing Benchmark: Calculated using IBJA 999 purity gold closing prices across three preceding working days.
Frequently Asked Questions (FAQ)
Is premature redemption of Sovereign Gold Bonds mandatory after 5 years?
No, premature redemption is entirely optional. Investors can choose to hold their bonds until full maturity at 8 years.
How is the SGB premature redemption price calculated?
The redemption price is based on the simple average of closing gold prices (999 purity) published by the India Bullion and Jewellers Association (IBJA) over the three working days preceding the redemption date.
Are capital gains on premature SGB redemption taxable?
Capital gains arising from premature redemption directly through the RBI after 5 years are completely tax-exempt for individual investors.
Source: Reserve Bank of India (RBI), Ministry of Finance
