Premature redemption for SGB 2020-21 Series VII will be permitted on October 19, 2026, as it falls after the fifth year from issue and coincides with the interest payment date. October 20, 2026, being a holiday, necessitates the shift.
Premature Redemption Window Opens for SGB 2020-21 Series VII
The Reserve Bank of India has notified that the premature redemption date for the Sovereign Gold Bond (SGB) 2020–21 Series VII will be October 19, 2026. The bond, originally issued on October 20, 2020, becomes eligible for early redemption after the completion of five years, as per the GOI notification F.No. 4(4)-B(W&M)/2020 dated October 9, 2020.
Since the fifth anniversary (October 20, 2026) falls on a holiday, the redemption will be operational on the preceding business day—October 19, 2026. Premature redemption under the SGB Scheme is only permitted on interest payment dates after the fifth year, ensuring alignment with fiscal and administrative timelines.
Implication for practitioners: Advisors in private wealth and investment law should inform clients holding these bonds of the redemption window. Tax implications under the Income Tax Act, 1961, particularly capital gains treatment, must be evaluated before exercising the option.
Citations
- Sovereign Gold Bond Scheme, GOI Notification F.No. 4(4)-B(W&M)/2020
