Closing and Withdrawal of SGBs


How to Close your SGB account?

Follow the steps given below to close your SGB account.

  • Your SGB account will automatically close on maturity 


  • The maturity period for the SGB investment is eight years


  • Post maturity, your invested amount will be transferred to your savings bank account 


  • Your principal value will be equal to the closing gold price three business days before your redemption date

Is Partial Withdrawal allowed in SGB investment?

No, partial withdrawal is not allowed in SGB investment

Is premature withdrawal and closure allowed in SGB?

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    Yes, premature withdrawal is allowed in SGB, but only after the fifth year of investment

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    For premature withdrawal, your SGB will be traded on the stock exchange 

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    You don’t have to go through all that hassle

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    Just approach the bank, post office etc. before the coupon date (interest issuance date)

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    You need to approach them at least one day before the coupon date

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    Request for premature redemption of your SGBa

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    Your eligible SGB amount will be only credited to your bank account registered while opening the SGB account

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    Remember, you can only prematurely withdraw and close your SGB completely. Partial withdrawal is not allowed in SGB

What is the penalty for premature withdrawal of SGB?

In premature withdrawal, your gains can be taxed as Long-term Capital Gains (LTCG)

Points to Remember

Points to Remember

Let us recap about SGBs

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    Sovereign Gold Bonds (SGBs) are a better way to invest in gold virtually (paper form)

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    SGBs are issued by the Reserve Bank of India (RBI) on behalf of the Government of India

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    The minimum value you can invest in SGB is equal to one gram of 24 carat gold

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    The coupon rate (interest rate) on SGB is 2.5% (as of May 2022).


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