How to redeem an SGB early (5th-year window)

Tue, 12 May 2026 00:00:00 +0000

This guide explains how to exercise the early-exit option for Sovereign Gold Bonds (SGBs) during the RBI’s designated premature redemption windows. The SGB Scheme allows investors to exit their SGB holdings before the 8-year maturity, but only on specific coupon payment dates starting from the 5th year after the original issue date. This is commonly called the “5th-year window” or the premature redemption window.

Early exit is an important option for investors who no longer wish to hold the SGB to maturity or who need liquidity. However, unlike maturity redemption, early-exit proceeds are not exempt from capital gains tax. The tax implications differ significantly from the 8-year maturity route, making it important to understand both options.

Early Redemption on WebNotes

How to redeem an SGB early (5th-year window)