SGB 2021-22 Series VII Premature Redemption: RBI Sets ₹14,167 per Unit—Check the Deadline and Tax

RBI has fixed the SGB 2021-22 Series VII premature redemption price at ₹14,167 per unit, equivalent to one gram of gold, for the redemption date of 2 November 2026. This applies to the specified tranche and the stated premature-redemption date; it is not a price for all gold bonds.

The bond was issued on 2 November 2021. RBI’s release dated 30 October 2026 says the price is the simple average of the closing prices for 999-purity gold published by IBJA for 28, 29 and 30 October 2026. Read the RBI announcement.

Important: the request window has closed

The published RBI calendar specified 1 October to 23 October 2026 for submitting requests for this tranche’s 2 November premature redemption. As of 31 October 2026, that published window has ended. The 2 November date is the redemption date, not a fresh application deadline.

If you submitted a request in time, check its acknowledgement with your bank, receiving office, depository participant or RBI Retail Direct, as applicable. If you missed the window, ask your servicing institution about future eligible windows and the applicable timetable; do not assume a late request will be accepted or that the same ₹14,167 price will apply later. Exchange sale may be an alternative for eligible demat holdings, subject to liquidity, market price and tax.

Original issue price and illustrative gain

The Ministry of Finance said the original issue price was ₹4,765 per gram. Eligible subscribers who applied online and paid digitally received a ₹50 discount, giving an issue price of ₹4,715 per gram. PIB issue-price release.

Original issue price ₹4,765 → redemption ₹14,167 → price gain ₹9,402 per gram, approximately 197.31%.

Discounted issue price ₹4,715 → redemption ₹14,167 → price gain ₹9,452 per gram, approximately 200.47%.

For an eligible holder with 10 grams purchased at ₹4,715 each, the illustrative redemption value is ₹1,41,670 against original cost ₹47,150, a price gain of ₹94,520 before tax and costs. Actual results differ if the bonds were bought in the secondary market or at a different cost. These are absolute price gains over approximately five years, not annual returns; they exclude interest and taxes.

What about interest?

The scheme provides fixed interest of 2.5% per annum on the applicable nominal issue value, payable half-yearly under the scheme terms. Interest is separate from the gold-linked redemption amount and is generally taxable according to the investor’s applicable tax position. Check the holding statement and actual credits. Do not calculate interest on the ₹14,167 redemption price.

Is premature redemption tax-free in 2026?

This is an essential distinction. Section 43 of the Finance Act, 2026 substituted section 70(1)(x) of the Income-tax Act, 2025. For the applicable tax year, the exclusion from transfer for redemption is limited to a sovereign gold bond held by an individual from the date of original issue till maturity. The Income Tax Department’s Budget 2026 FAQs state that premature redemption is not eligible for that exclusion, even for an original subscriber. An individual who acquired a bond in the secondary market does not meet the original-issue condition described in the FAQ.

Accordingly, an investor should not assume that redemption on 2 November 2026 is automatically exempt. Determine the acquisition date and cost, holding period, appropriate capital-gains treatment, residential status, any other relevant facts and applicable rates before filing. Interest and capital gain should be separately reviewed. Finance Act 2026; Income Tax Department Budget 2026 FAQs.

Hold, redeem or sell: what should investors examine?

Compare the need for cash, original or secondary-market acquisition, applicable tax, the market price and liquidity, and the risk of holding gold until a later date. The future redemption price is not known today. Holding to maturity may be relevant to an individual original subscriber’s tax position, but it is not automatically the right investment decision for every holder.

For personal tax reporting, review income tax return services for capital gains or Wealth4India ITR filing services. Investors considering their wider asset allocation may also see mutual fund and investment services.

Frequently Asked Questions

What is the announced premature redemption price? ₹14,167 per unit for this tranche’s redemption due on 2 November 2026.

Can a new request automatically be made on 2 November? No. The published request window was 1–23 October 2026; check directly for any authorised exception or future window.

Does everyone earn 200.47%? No. That is the approximate absolute price gain for an eligible original subscriber at ₹4,715 per gram, before interest and tax. Acquisition cost varies.

Is it 200% per year? No. It is an absolute change over about five years, not an annualised return.

Is premature redemption tax-free? The Department’s Budget FAQs say the section 70(1)(x) exclusion is not available for premature redemption in the applicable tax year.

Is the interest tax-free? The fixed interest is generally taxable; assess the investor’s individual circumstances.

Conclusion

The ₹14,167 price is relevant to investors with valid instructions for this specific tranche and date. Verify the instruction and bank details, and review tax before comparing redemption with continued holding or a market sale.

References: RBI 30 October 2026 release, PIB original issue price, Finance Act 2026, Income Tax Department FAQs. The published calendar’s 1–23 October window is reproduced in NSE circular NSE/CML/76556 dated 25 September 2026; confirm any later change with the servicing institution.