Sovereign Gold Bond (SGB) – Product Discontinued

No. The SGB scheme has been discontinued for fresh subscriptions. However, existing bonds held by investors remain valid and will continue to accrue interest and mature as per the original terms.

Your SGBs remain active and valid until their maturity or until you opt for premature redemption (after 5 years for some tranches and after 5 years and 6 months for other tranches from the date of issuance of the bonds, depending on the specific issuance). You will continue to receive interest as scheduled.

If your SGB is held in demat form, you can check your SGB holdings in the demat account.

If SGB is applied through physical form or through iMobile or internet banking (without opting demat account) the SGB certificate serves as the sole proof of Investments. In this case SGB will not reflect in iMobile or internet banking

The SGB certificate is sent to your registered email iD from ekuber (ekuberhelpdesk@rbi.org.in). If not received, please contact your branch for assistance.
If the SGB was purchased through a demat account, the certificate cannot be downloaded. the SGB holdings in your demat account serve as the proof of investment

You can redeem your SGBs:

• On maturity: After 8 years, automatically.
• Prematurely: For early redemption, the option is available after 5 years for some tranches and after 5 years and 6 months for other tranches from the date of issuance of the bonds, depending on the specific issuance and premature redemption calendar issued by RBI.
• You are requested to kindly confirm the applicable redemption period with branch and place a redemption request through the platform (ICICI Bank, broker, or post office) where the bonds were originally purchased.
• Premature redemption request – Submit  an early redemption form (Annexure F5) along with SGB certificate and PAN copy to the branch. Branch will raise the request regarding the same.
• If the bonds are held in demat, you may visit your nearest demat-enabled branch to place an early redemption request. Alternatively, you can sell the SGB in the secondary market through your demat account.

The redemption price is calculated based on the average closing price of gold (999 purity) over the last 3 business days before the redemption date, as published by the India Bullion and Jewellers Association (IBJA).

Submit a demat transfer form (Annexure F1) along with the original SGB certificate and Pan copy to the branch, Branch will raise the request. Ensure your name, PAN match in both records.

SGB interest is paid every 6 months at 2.50% p.a. from the date of issue, into the bank account linked to your bonds. On maturity (after 8 years) the principal is credited to the same account. Interest dates are mentioned in the certificate.

 If the SGB is held in demat form, the interest is credited directly to the linked bank account, usually every 6 months from the issue dates.

If interest is not received after checking bank/demat details, please connect with your branch.

Submit an Annexure F2 form along with deceased holder’s death certificate, legal heir certificate and KYC documents to the bank. Branch will raise the request and then the bonds will be transferred to the eligible claimant.

Yes. The 2.50% annual interest received is taxable as per your income tax slab. However, no Tax Deducted at Source (TDS) is applied.

Please consult your Tax expert for more clarification and tax advice.

If held till maturity or redeemed prematurely after 5 years: Capital gains are exempt for individuals.

If sold on the stock exchange: Capital gains tax may apply depending on the holding period and applicable tax rules.

Please consult your Tax expert for more clarification and tax advice.

Yes. SGBs can be pledged with banks or financial institutions to avail loans, subject to their lending policies and RBI guidelines.