The Premature Redemption Schedule (April–September 2025)

The RBI’s circular, issued on February 21, 2025, outlines the premature redemption dates for multiple SGB tranches issued between October 2017 and September 2020, covering the period from April 1 to September 30, 2025. This allows investors who have held their bonds for at least five years to redeem them early, aligning with the SGB scheme’s established rules. 

Tranches:

• 2017-18 Series III: Issued October 16, 2017; redeemable April 16, 2025.
• 2019-20 Series V: Issued October 15, 2019; redeemable April 15, 2025.
• 2020-21 Series VI: Issued September 8, 2020; redeemable September 8, 2025.

• Submission Window: Investors must submit redemption requests within specified periods (typically 20–30 days before the coupon payment date), subject to change if unscheduled holidays occur.
• Redemption Price: Based on the average closing price of 999-purity gold for the prior week, as published by the India Bullion and Jewellers Association (IBJA).

• The option to redeem SGBs after five years (on coupon payment dates) has been a core feature since the scheme’s launch in November 2015, as per the Consolidated Procedural Guidelines. The RBI has consistently published such schedules semi-annually (e.g., October 2024–March 2025 covered 30 tranches from May 2017–May 2020). The April–September 2025 schedule is simply the next iteration, covering bonds issued five years prior (2017–2020).
• There’s no official statement indicating the government or RBI is actively pushing investors out. The premature redemption process remains voluntary—investors can hold until the eight-year maturity for full benefits (e.g., tax-exempt capital gains on redemption), or exit early based on personal financial goals or market conditions (e.g., gold at ₹76,000–₹78,000/10g now, potentially ₹110,000–₹115,000 by FY26, per prior forecast).
• The lack of new issuances might reflect fiscal prudence (gold’s rally to $2,954/oz increases payout costs) or a shift in priorities (e.g., reducing gold import reliance), but it doesn’t alter the existing bonds’ terms. The April–September 2025 schedule is a procedural update, not a policy pivot.

Why the Perception Persists

• Recent Trends: Gold’s 10–12% YTD gain in 2025 (per prior gold ETF data) and the scheme’s halt could suggest the government sees it as less cost-effective, especially as borrowing costs rise (e.g., FY24 gross borrowing via SGBs was ₹26,852 crore). Investors might fear a “soft exit” strategy.
• Market Sentiment: Equity corrections (Nifty 50 -13.2%, Smallcap 100 -21.6% from peaks, per prior response) contrast with gold’s strength, possibly prompting speculation that the RBI is signaling a shift away from gold-linked instruments.
• Misinterpretation: The high-profile nature of the announcement, amid no new issuances, might be misread as a push, though it’s just a routine notice for eligible tranches.

Conclusion

The RBI’s April–September 2025 SGB premature redemption schedule is BAU, not a government ploy to push exits. It’s a standard option—available since 2015—for bonds hitting five years, covering 2017–2020 tranches as expected. The scheme’s pause and high gold prices might fuel speculation, but this announcement reflects procedural continuity, not a strategic shift. For investors, it’s a chance to reassess holdings (e.g., exit at ~₹76,000/10g or hold for a potential ₹115,000 by FY26), not a forced move.