The Reserve Bank of India (RBI) on February 02, 2024, issued a notification regarding Premature redemption under the Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on February 05, 2024 (Series I of SGB 2016-17).
The following has been stated: -
•In terms of GOI Notification F. No. 4(7) - W&M/2016 dated July 14, 2016 (SGB 2016-17, Series I - Issue date August 05, 2016) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date for premature redemption of the above tranche shall be February 05, 2024.
•The redemption price of SGB shall be based on the simple average of the closing gold price of 999 purities, of the week (Monday-Friday) preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for the premature redemption due on February 05, 2024, shall be ₹6271/- (Rupees Six thousand two hundred and seventy-one) only per unit of SGB based on the simple average of closing gold price for the week of January 29-February 02, 2024.
The detailed notification is given in the document attached below.
[Press Release: 2023-2024/1797]
