Sovereign Gold Bond Scheme 2025-26 was a popular way for you to invest in gold without holding it physically. However, Government of India has stopped the Sovereign Gold Bond (SGB) scheme starting from the fiscal year 2025-26. No new tranches are planned for issuance going forward. Last tranche was issued in February 2024.
No Next Issue Date for Sovereign Gold Bond Scheme 2025-26
Since the scheme has been stopped, there are currently no planned issue dates for Sovereign Gold Bonds in 2025-26. Investors will not be able to subscribe to new SGBs this year or in the future.
If you were hoping to invest in gold digitally through this scheme, you will need to find other options as the government has stopped issuing new bonds due to rising costs from increasing gold prices.
Important Update on Redemption of Existing Bonds
For investors holding Sovereign Gold Bonds issued between 2018 and 2021, Reserve Bank of India (RBI) has published a detailed schedule for early redemption. Investors whose bonds mature from October 2025 to March 2026 can choose premature redemption following RBI’s schedule.
The bonds will keep earning the fixed interest rate of 2.50% per year until redemption. Investors should check RBI’s official website or notices for the relevant redemption timelines and application windows to exit their investments on time.
Overview of Sovereign Gold Bond Benefits (Past Scheme)
Although SGB scheme is discontinued, the bonds already purchased continue to offer several benefits until they mature or are redeemed early:
- Fixed interest rate of 2.50% per year, paid every six months
- Capital gains tax exemption if held till maturity
- Tradability on stock exchanges for liquidity
- Option to use bonds as collateral for loans
The bonds are supported by Government of India, making them very safe investments.
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Who Could Invest in Sovereign Gold Bond Scheme?
Eligible investors included Indian residents, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Bonds could be held by investors even if they moved abroad, as allowed under Foreign Exchange Management Act, 1999.
Main Highlights of Sovereign Gold Bond Scheme (Until 2024)
| Feature | Details |
|---|---|
| Tenure | 8 years, with option to redeem after 5 years |
| Interest Rate | Fixed 2.50% annual interest, paid twice a year |
| Issue Price | Based on average gold price of previous week |
| Eligibility | Indian residents, HUFs, trusts, universities, charities |
| Tradability | Can be traded on stock exchanges for easy liquidity |
| Minimum Purchase | 1 gram of gold |
| Tax Benefits | Capital gains exempt if held till maturity |
| Collateral | Could be used as loan security |
How to Manage Your Existing SGB Investments
If you are an existing investor, keep track of RBI’s redemption calendar released for bonds maturing or eligible for early redemption from October 2025 to March 2026. It is important to apply during the specified windows to redeem your bonds smoothly.
Your bonds will continue to earn interest at the fixed rate of 2.50% per year until the redemption date.
FAQs Updated
Is Sovereign Gold Bond Scheme still available for subscription?
No, Government of India has stopped the scheme starting from 2025-26. No new bonds will be issued.
Can I redeem my existing Sovereign Gold Bonds early?
Yes, RBI has scheduled early redemption windows for bonds maturing between October 2025 and March 2026. Check RBI’s official announcements for details.
What happens to the interest and tax benefits?
Existing bonds will continue to pay an interest rate of 2.50% per year. Capital gains on redemption after maturity remain tax-free as before.
Are the existing bonds tradable?
Yes, tradability on stock exchanges continues even after stopping the scheme.
Where can I find the redemption schedule?
RBI website will have detailed schedules and instructions for the redemption process.