RBI April Exit Window: Investors who have put money in Sovereign Gold Bonds now have clear information for the next financial year. The Reserve Bank of India has released the schedule for early redemption of five SGB tranches. These bonds have completed the required five year lock in period and can now be redeemed in April under the premature exit option.
Sovereign Gold Bonds are normally issued for eight years. But investors are allowed to exit after five years from the date when the bond was issued. Twice every year, the RBI publishes a list of which bond batches are eligible for early redemption. This helps investors who do not want to wait for the full eight year term.
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The tranches eligible for premature redemption in April are:
- 2018–19 Series II (issued October 23, 2018) – Redemption date: April 23, 2026
- 2019–20 Series V (issued October 15, 2019) – Redemption date: April 15, 2026
- 2019–20 Series VI (issued October 30, 2019) – Redemption date: April 30, 2026
- 2020–21 Series I (issued April 28, 2020) – Redemption date: April 28, 2026
- 2020–21 Series VII (issued October 20, 2020) – Redemption date: April 20, 2026
Investors must submit their redemption requests in advance, as per the timelines specified by the RBI.
Timeline for submitting the request for premature redemption
- 2018–19 Series II – March 23, 2026, to April 13, 2026
- 2019–20 Series V – March 14, 2026, to April 06, 2026
- 2019–20 Series VI – March 30, 2026, to April 20, 2026
- 2020–21 Series I – March 28, 2026, to April 18, 2026
- 2020–21 Series VII – March 20, 2026, to April 10, 2026
Big Tax Rule Change From April 1, 2026
There is another important update that investors must understand. In Union Budget 2026, the government announced a change in tax rules for SGBs. Earlier, if an individual investor redeemed SGBs after five years through the RBI window, there was no capital gains tax. This made the five year exit option very attractive for many people.
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Starting April 1, 2026, the rules will be different. If someone takes out their money after five years, they might have to pay capital gains tax. Cause of this they could get less profit in hand than earlier.
But if someone stays invested for the full 8 years until maturity then the tax benefit will continue. Capital gains on redemption at maturity will still remain tax free for individual investors. This keeps one major advantage of SGBs intact when compared to physical gold or gold ETFs.
Financial advisors say investors should think carefully before deciding to exit early. If there is no urgent need for money, holding the bond for the complete eight year period may be better from a tax point of view.
