MM TAX CLUB

The Reserve Bank of India (RBI) has released an important update for investors holding Sovereign Gold Bond (SGB) 2018-19 Series V. As per the latest press release dated 21 January 2026, the premature redemption price for this tranche has been officially announced.

Let’s break it down in simple terms.

Who Is Eligible for Premature Redemption?

According to RBI guidelines, Sovereign Gold Bonds can be redeemed prematurely after completion of 5 years from the date of issue, but only on the interest payment dates.

• Issue Date: 22 January 2019

• 5 Years Completed On: 22 January 2024

• Next Eligible Premature Redemption Date: 22 January 2026

So, investors holding SGB 2018-19 Series V can opt for premature redemption on 22 January 2026.

Premature Redemption Price

The redemption price is calculated based on the simple average of closing gold prices of 999 purity for the previous three business days, as published by the India Bullion and Jewellers Association Ltd. (IBJA).

For this tranche:

• Redemption Price: ₹14,853 per unit

• Gold Price Average Dates Considered:

  • 19 January 2026

  • 20 January 2026

  • 21 January 2026

Why This Matters for Investors

• If gold prices have increased since your investment, you may benefit from capital appreciation.

• SGBs also offer 2.5% annual interest, which is paid semi-annually.

• Capital gains on redemption with RBI are tax-free for individual investors (a major advantage over physical gold).

Key Takeaway

If you are holding SGB 2018-19 Series V, this is a good time to:

• Review your investment goals

• Compare market gold prices

• Decide whether to redeem or continue holding until maturity

Premature redemption at ₹14,853 per unit could be attractive depending on your purchase price and financial planning needs.

If you need help with tax implications, investment planning, or portfolio review, feel free to consult a professional before making a decision.

Source: RBI Press Release (January 21, 2026)