SGB redemption July 2026: 8 Sovereign Gold Bond series eligible for early exit
Investors holding eligible Sovereign Gold Bond (SGB) tranches can opt for premature redemption after completing the mandatory five-year holding period.
Under the provisions applicable from April 1, 2026, capital gains tax exemption on redemption is available only to investors who subscribed to SGBs in the RBI's primary issuance and hold them until maturity. (This is an AI-generated image)
Investors holding eligible Sovereign Gold Bonds (SGBs) issued between 2019 and 2021 can opt for premature redemption in July 2026 after completing the mandatory five-year holding period.
The Reserve Bank of India (RBI) has notified the redemption schedule for eligible SGB tranches, allowing investors to exit before the bonds complete their full eight-year tenure. However, early redemption is permitted only on specified interest payment dates, and investors must submit their requests within the prescribed application window.
The July schedule covers eight eligible SGB series, making it one of the busiest redemption months this year.
July 2026 SGB redemption calendar
The following eight SGB series are eligible for premature redemption in July:
SGB series
Redemption date
Request submission window
2019-20 Series VIII
July 21, 2026
June 20-July 13
2020-21 Series I
July 28, 2026
June 27-July 20
2020-21 Series II
July 29, 2026
June 28-July 21
2020-21 Series III
July 30, 2026
June 29-July 22
2020-21 Series IV
July 31, 2026
June 30-July 23
2021-22 Series I
July 31, 2026
June 30-July 23
2021-22 Series II
July 31, 2026
June 30-July 23
2021-22 Series III
July 31, 2026
June 30-July 23
Investors must submit redemption requests through the bank, post office, depository participant, stock holding agent or the RBI Retail Direct platform from where they purchased the bonds. Missing the application window means waiting until the next eligible interest payment date or until maturity.
The redemption value is not linked to the issue price of the bond.
Instead, the RBI calculates the redemption price using the simple average of the closing price of 999 purity gold during the previous three business days, based on rates published by the India Bullion and Jewellers Association (IBJA).
The central bank announces the final redemption price shortly before each redemption date.
Apart from capital appreciation linked to gold prices, SGB investors also earn 2.5% annual interest, paid semi-annually on the original investment amount throughout the bond's tenure.
Recent SGB redemption shows the gains investors have earned
The recent redemption of SGB 2020-21 Series III highlights the returns generated by the surge in gold prices.
The bond was issued at ₹4,627 per gram for online subscribers ( ₹4,677 per gram for offline investors) and was redeemed on June 16, 2026, at ₹14,774 per gram.
That translates into an absolute return of around 219% for online investors, excluding the semi-annual interest earned during the holding period. An investment of ₹1 lakh at the time of issuance would have grown to roughly ₹3.19 lakh, apart from the interest received over five years.
Tax rules have changed from April 1, 2026
Investors should also keep the revised tax rules in mind before deciding to exit.
Under the provisions applicable from April 1, 2026, capital gains tax exemption on redemption is available only to investors who subscribed to SGBs in the RBI's primary issuance and hold them until maturity.
Investors who purchased Sovereign Gold Bonds from the secondary market will now be liable to pay the applicable capital gains tax on redemption. This marks a significant change from the earlier regime, where the tax treatment was more favourable for certain investors.
With several eligible SGB tranches opening for early redemption in July, investors should verify their bond series, ensure they do not miss the request submission window and evaluate whether booking gains now aligns with their broader investment strategy.
