Sovereign Gold Bonds: Premature Redemption Request Window For SGB 2018-19 Series IV Opens Today

Sovereign Gold Bonds: The Reserve Bank of India (RBI) opened the window to submit the pre-mature redemption request for Sovereign Gold Bond (SGB) 2018-19 Series IV from December 1. The window will remain open until December 22, 2025, according to the redemption calendar issued for the October 2025–March 2026 cycle.

SGB 2018-19 Series IV was available for subscription between December 24 and December 28, 2018 and was issued on January 1, 2019. The pre-mature redemption date for SGB 2018-19 Series IV bond is January 1, 2026.

SGBs have an eight-year fixed tenure. RBI regulations permit investors to withdraw early after five years from the issue date. This facility enables investors to fulfill liquidity requirements without requiring them to hold the bonds till maturity.

The SGB scheme was introduced by the Government of India on October 30, 2015, as a way to offer investors a non-physical route to owning gold. The aim was to provide a safer, more convenient alternative to buying jewellery or bullion, while also helping reduce the country’s heavy dependence on imported gold.

However, from 2024 onwards, the RBI stopped issuing new SGBs. The central bank undertook that decision due to growing concern over the rising cost to the government. Since the bonds carry a fixed interest rate and must be redeemed at the prevailing price of gold, they have become an increasingly expensive form of borrowing for the government.

How Redemption Price Is Calculated

At the time of redemption, the redemption amount per gram of gold (or per unit of bond) is determined based on the simple average of the closing price of 999-purity gold over the three business days preceding the date of redemption, which is January 1, 2026 in this particular SGB’s case. The gold-rate data is sourced from the India Bullion and Jewellers Association Ltd. (IBJA).

The redemption amount, along with any interest due, is paid directly into the bank account that the investor provided when they bought the bond.

What Investors Need To Know

Investors holding SGB 2018-19 Series IV who want to exit early will need to submit their redemption request to their bank, SHCIL branch, authorised post office or depository participant (NSDL/CDSL) before the window closes on December 22, 2025. This is the only period in the current cycle when premature redemption is allowed for this tranche.

Before placing the request, investors should make sure that the bank account details registered with their SGB are accurate and up to date, as the RBI will credit the redemption amount directly to that account on the payout date.

Gold Price Today

Gold prices traded higher in early trade on December 1. As of 11:18 AM, gold futures on the Multi Commodity Exchange (MCX) traded at Rs 1,30,275 per 10 grams, up by Rs 771 or 0.60 per cent. On the Comex, gold futures was up by $3.60 or 0.08 per cent at $4,258.50 per ounce.