SGB 2021-22 Series V investors can now redeem their bonds prematurely on August 17, 2026, with the Reserve Bank of India (RBI) fixing the redemption price at ₹15,295 per unit. The redemption price is based on the simple average of the closing price of 999-purity gold for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA). The three business days considered for this redemption were August 12, August 13 and August 14, 2026. As per RBI guidelines, premature redemption of SGBs is permitted after five years from the date of issue, provided the redemption takes place on an interest payment date. However, investors should note that the redemption request submission window ran from July 17 to August 7, 2026, and investors who missed this window cannot place fresh redemption requests on the redemption date.
SGB 2021-22 Series V was issued at ₹4,740 per unit for online applicants, with the government offering a ₹50 discount for digital payments, bringing the effective issue price to ₹4,740 per unit. At the current redemption price of ₹15,295 per unit, investors holding one SGB unit will achieve significant capital gains. Regular investors who paid the regular issue price of ₹4,790 will earn approximately ₹10,505 per unit, translating to an absolute return of around 219%. For online investors, the gain works out to about ₹10,555 per unit, resulting in an absolute return of 223% on their original investment. In absolute terms, an investment of ₹47,400 in the online issue would have grown to approximately ₹1,52,950 at the premature redemption price, with the calculation not including the 2.5% annual interest that SGB investors received separately during the holding period. As per latest reports, an investment of ₹5 lakh at the time of issue would be worth around ₹16.13 lakh at the premature redemption price, excluding interest.
Beyond the capital gains, SGB investors receive interest at 2.5% per annum on their initial investment, paid semi-annually. According to the redemption calendar, only one SGB tranche remains for premature redemption in August 2026, with the next tranche being SGB 2019-20 Series III due for redemption on August 14, 2026. The redemption request window for this final August tranche was from July 17 to August 7, 2026. From April 1, tax rules for SGBs have been revised, restricting tax benefits significantly. Even primary issue subscribers now have to pay capital gains tax on premature redemption, while the capital gains tax exemption at maturity is restricted to original subscribers who hold their bonds for the full eight-year tenure.
