The latest sovereign gold bond premature redemption took place on 2 November 2026, when holders of SGB 2021-22 Series VII could exit at Rs 14,167 per unit. Investors who bought this tranche offline at the original offer had paid about Rs 4,765 per gram, so the exit price shows a large gain on paper. The price, however, is not something the holder or the bank can choose.
In this tranche, the price was calculated as the simple average of the closing price of 999‑purity gold on the three business days preceding the redemption date. RBI releases the figure for each tranche, and the holder receives the amount that comes out from that average.
Other recent exits were priced in the same manner. For SGB 2020-21 Series IV, the RBI had fixed the early exit price at Rs 13,929 per unit from 14 January 2026, which was roughly 185% above the issue price of Rs 4,890 paid by offline buyers, as per Business Standard.
Who can exit early and by when
Premature exit from these bonds is allowed only from the fifth year, and only on the interest payment dates of the particular tranche. A holder cannot ask for redemption on any other day, even when the gold price is favourable.
On 23 February 2026 the RBI has released its calendar for the months of April to September 2026, it shows the tranches that are due for early redemption and provides a request window against each of them.
For the Series V tranche of 2018-19, due on 22 July 2026, the application window opened on 20 June and closed on 13 July, so the requests finished roughly nine days before the redemption date.
Investors have to file the request via their bank, post office or the agent from whom they bought the bond, as per Business Standard.
Tax position changed from 1 April 2026
Many holders who are considering an early exit are also looking at how the gain will be taxed, and the rule changed from 1 April 2026.
Redeeming early through the RBI within the windows did not invite capital gains tax for individuals until 31 March 2026.
Budget 2026 withdrew this exemption for early exits from 1 April 2026.
Premature redemption through the RBI is taxable from 1 April 2026, at 12.5% for long-term gains, even for original subscribers. Exits before that date kept the exemption.
