Sovereign Gold Bond (SGB)
Government bonds linked to gold with 2.5% interest — no new issues now; buy on exchanges.
Rates as on 29 September 2026 · Updated 29 September 2026Overview
Sovereign Gold Bonds are issued by the RBI on behalf of the Government of India. Each unit represents 1 gram of 999 gold, pays 2.5% annual interest (semi-annually) and matures in 8 years with an exit option from the 5th year. The Government has not issued new tranches since February 2024; existing series trade on NSE and BSE.
| Particular | Details |
|---|---|
| Issuer | RBI for Government of India |
| Unit | 1 g of 999 gold |
| Interest | 2.5% p.a., paid half-yearly (taxable) |
| Tenure | 8 years; premature redemption from 5th year on interest dates |
| New issues | Discontinued (last tranche Feb 2024) |
| Secondary market | Listed on NSE / BSE |
| Maturity value | Average of IBJA 999 price of previous 3 business days |
Pros and cons
Paper gold held in demat or RBI account.
On top of gold price movement.
No credit risk.
Exchange trading volumes can be thin; prices may trade at a discount/premium.
Taxation after Budget 2026
Redemption at maturity is exempt from capital gains only if an individual subscribed in the original issue and held continuously till maturity (effective for redemptions after 1 April 2026). Secondary-market buyers pay capital-gains tax on redemption. Interest is taxable every year.
Frequently asked questions
Can I buy new SGBs?
No new tranches are being issued; you can buy existing series on stock exchanges.
Is SGB interest taxable?
Yes, at your slab rate.
Gold rates are indicative market references (29 September 2026) and change during the day. Rules on tax, hallmarking and investment products can change — verify with official sources. FinancePortal does not sell gold.