The bond, issued on March 9, 2021, reaches its fifth-year redemption milestone as per Government of India guidelines.
The redemption price has been fixed at ₹16,063 per unit, calculated as the simple average of gold’s closing price over March 4, 5, and 6, 2026, based on India Bullion and Jewellers Association Ltd (IBJA) data.
The offline issue price was slightly higher at ₹4,662, resulting in a comparable gain for those investors. These figures exclude the interest earned over the holding period.
Earlier, the SGB 2020-21 Series VI reached its premature redemption date on March 7, 2026, under the same guidelines.
Sovereign Gold Bond is a government-backed option for gold investors, offering both potential price appreciation and interest income while removing concerns of storage and purity associated with physical gold.
The payout comes at a time when the future attractiveness of SGBs is being reassessed.
The Union Budget 2026 proposed changes to the tax treatment of SGBs, introducing a distinction between primary subscribers and secondary-market buyers.
From April 1, 2026, the long-standing capital gains tax exemption on SGBs redeemed at maturity will be available only to investors who subscribe directly at the RBI’s primary issuance and hold the bonds till maturity. Investors who purchase SGBs from exchanges or other holders in the secondary market will not get tax-free redemption, even if they hold the bonds to maturity.