Sovereign Gold Bond (SGB)
Government gold bonds — new issuances are paused, but existing bonds stay active. Here's the current status, redemption calendar, and how value is calculated.
Last updated May 2026
Current status: paused
The RBI has not announced any new Sovereign Gold Bond tranches for FY 2026-27, and no issuance calendar has been released. The scheme is effectively on hold. If you already hold SGBs, they remain valid until maturity and keep paying interest — nothing changes for existing investors.
How SGB works
- Tenure: 8 years, with premature redemption allowed after 5 years on interest-payment dates.
- Interest: 2.5% per annum, paid half-yearly, on top of any gold price appreciation.
- Pricing: Both issue and redemption prices track the IBJA 999-purity gold rate — the same benchmark behind our daily gold price.
- Tax: Interest is taxable; capital gains at maturity are exempt for individuals.
Premature redemption calendar (Apr–Sep 2026)
These tranches reach their premature-redemption window in the first half of FY 2026-27. The exact redemption price is fixed by RBI near each date from the IBJA gold average.
| Tranche | Issued | Redemption window |
|---|---|---|
| 2018-19 Series IV | Jan 2019 | Apr 2026 |
| 2018-19 Series V | Jan 2019 | Apr 2026 |
| 2018-19 Series VI | Feb 2019 | May 2026 |
| 2019-20 Series I | Jun 2019 | Jun 2026 |
| 2019-20 Series II | Jul 2019 | Jul 2026 |
| 2019-20 Series III | Aug 2019 | Aug 2026 |
| 2019-20 Series IV | Sep 2019 | Sep 2026 |
Indicative, based on RBI's published redemption calendar. Confirm exact dates and prices with RBI or your depository before acting.
What to do now
With new issuances paused, investors looking for gold exposure often compare existing SGBs on the secondary market, gold ETFs, or physical gold. Track the underlying rate on our gold price page to gauge what your SGB is worth, since redemption follows the same IBJA benchmark.
Frequently asked questions
Can I buy a new Sovereign Gold Bond in 2026?
No. The RBI has not announced any new SGB tranches or an issuance calendar for FY 2026-27. The scheme is effectively paused. You can only buy existing SGBs on the secondary market (stock exchanges) or hold ones you already own.
What happens to my existing SGB?
Existing bonds remain fully valid until maturity (8 years) and continue to pay 2.5% annual interest. You can redeem prematurely after 5 years on interest-payment dates, per the RBI redemption calendar.
How is the SGB redemption price decided?
It is based on the simple average closing price of 999-purity gold for the three business days before redemption, as published by IBJA — the same benchmark behind our daily gold price.
Is SGB interest taxable?
The 2.5% annual interest is taxable as per your income slab. However, capital gains on redemption at maturity are exempt from tax for individual investors.
Source: RBI notifications and premature-redemption calendar. Not financial advice — see our methodology and terms.