Yes, you can redeem your Sovereign Gold Bond (SGB) before its 8-year maturity period, but only after completing 5 years from the issue date on specific coupon payment dates.
How to redeem SGBs early
You can redeem your SGB prematurely on coupon payment dates after the 5th year from the issue date. The Reserve Bank of India (RBI) opens redemption windows at the end of the 5th, 6th, and 7th years when you can apply for premature redemption.
Steps for early redemption
- Complete and sign the redemption form (PDF).
- Send the form to the following address:
Zerodha Customer Support Centre
192A 4th Floor,
Kalyani Vista, 3rd Main Road,
JP Nagar 4th Phase,
Bengaluru, 560076
You must ensure your redemption forms reach Zerodha at least 10 working days before the coupon payment date. Your redemption request will only be processed if you meet this deadline. Zerodha will credit the redemption proceeds to your linked bank account after processing your request.
Charges: You will be charged ₹150 + 18% GST for rematerialisation or redemption when you redeem your SGB early.
The RBI will redeem your SGB at the average gold price of the previous week published by the India Bullion and Jewellers Association Limited (IBJA).
Alternative: Secondary market
You can also sell your gold bonds on exchanges through the secondary market before maturity. However, these bonds may have limited liquidity in secondary markets.
To learn more about SGBs, visit m.rbi.org.in/scripts/FAQView.aspx?Id=109.