The Sovereign Gold Bond scheme is no longer issuing new tranches. The last SGB, Series IV of 2023-24, was issued in February 2024. No issuance calendar has been announced for FY 2025-26 or FY 2026-27.
If you’re searching for an upcoming SGB issue date, there isn’t one. If you hold existing SGBs, Budget 2026 has changed the tax rules for secondary-market buyers in ways that many investors haven’t fully processed yet.
This article explains what happened, why, what it means for existing holders, when (if ever) SGBs might return, and what investors should consider now.
Why the SGB Scheme Was Discontinued
The government discontinued the SGB scheme in the Union Budget 2025 because rising gold prices made it prohibitively expensive as a borrowing instrument.
SGBs were originally designed as a low-cost alternative to government borrowing. Investors would accept gold-linked returns plus 2.5% interest instead of demanding market-rate bond yields. When the scheme launched in 2015, gold was at ₹2,600/gram. By January 2026, maturity redemptions were priced at ₹14,432/gram, which is 264% above the 2020 issuance price.
The government was effectively paying an implicit “interest” of 40%+ on SGB borrowings in a year when gold hit an ATH, which is far more expensive than equivalent borrowing via Government Securities (G-Secs). The scheme is expected to restart only when SGB costs become competitive with G-Sec borrowing rates, which requires either a significant gold price correction or a material rise in G-Sec yields.
The timeline is clear:
- November 2015: SGB scheme launched
- February 2024: Last SGB tranche issued (2023-24 Series IV)
- Union Budget 2025: Formal announcement, no new tranches planned
- FY 2025-26: No issuance calendar released
- FY 2026-27: No issuance calendar released
Are Sovereign Gold Bonds Coming Back in 2026?
As of August 2026, no. The RBI has not announced any new SGB issuance calendar for FY 2026-27. Finance Minister Sitharaman confirmed in Budget 2025 that the government has no immediate plans to restart the scheme.
The government indicated it would revisit the decision during the borrowing calendar discussions with RBI, but given gold prices remain elevated, the cost basis for restarting SGBs remains unfavourable.
Monitor: RBI’s official website (rbi.org.in) and PIB press releases. If SGBs restart, there will be a formal announcement with subscription windows.
Investor takeaway: Don’t wait for an SGB. Plan your gold investment strategy around what’s actually available in 2026.
What Budget 2026 Changed for Existing SGB Holders: The Tax Update
This is the most important and least understood update for current SGB holders.
The original SGB tax structure: Capital gains on SGBs at maturity were fully exempt from tax for individual investors. This was the scheme’s biggest attraction, i.e tax-free gold price appreciation plus 2.5% semi-annual interest.
What Budget 2026 changed:
The tax-free benefit is now conditional on three criteria being met simultaneously:
- You subscribed during the original RBI issuance window (not from the secondary market)
- You are an individual investor (not a trust or institution)
- You held the bond continuously from issuance through to the full 8-year maturity
If you meet all three: your maturity gains remain fully tax-free. Nothing has changed for you.
If you bought SGBs from NSE/BSE (the secondary market): your gains at redemption are now taxable. If held for 12+ months from your purchase date, gains are subject to LTCG at 12.5% without indexation. This closes the arbitrage where investors were buying discounted old SGB tranches with little time to maturity purely to pocket the tax-free gain.
SGB Premature Redemption in 2026: Eligible Tranches
Existing SGB holders can redeem early after completing 5 years from the issue date, on the scheduled interest payment dates. Multiple tranches are eligible for premature redemption in 2026.
How to initiate premature redemption:
- Contact your issuing bank, post office, or SHCIL at least 10 days before the redemption date
- Submit the redemption request through the issuing entity
- Alternatively, through NSDL/CDSL if your SGBs are in demat form
The RBI sets the redemption price based on the simple average of the closing prices of 999-purity gold over the 3 business days preceding the redemption date.
For eligible tranches not yet redeemed: It’s worth checking whether your tranche qualifies for premature redemption in the second half of 2026 and whether the current gold price makes premature exit attractive versus holding to 8-year maturity.
For how gold prices are currently trending and what the price recovery from January’s ATH looks like, here’s a short piece on Gold Price Forecast India 2026.
How to Trade Existing SGBs on Stock Exchanges
SGBs are listed on NSE and BSE. If you hold them in demat form, you can sell before maturity through your broker at the prevailing market price.
Note: SGBs on the secondary market often trade at a discount to fair value, particularly older tranches with long maturities, because buyers are now aware that secondary-market purchases will lose the tax-free benefit under Budget 2026. This discount may make secondary market exit less attractive than holding to premature redemption or maturity.
SGB vs Digital Gold in 2026: The Honest Comparison
If SGBs were available right now, they’d be the best gold investment in India for a 5–8 year horizon: tax-free appreciation + 2.5% guaranteed interest + government backing. No other format comes close on that combination.
They aren’t available. Here’s how the closest available alternatives compare:
| Factor | SGB (when available) | Digital Gold (SafeGold) | Gold ETF |
| Currently available | No new tranches | Yes, from ₹10 | Yes, via demat |
| Capital gains at exit | Tax-free (original subscribers) | 12.5% LTCG (24+ months) | 12.5% LTCG (12+ months) |
| Annual income | 2.5% p.a. in cash (taxable) | 4% p.a. in gold via leasing | None |
| Minimum investment | ₹1 gram | ₹10 | ~₹100 (1 unit) |
| Government backing | Yes (RBI) | Structural (Brinks + Vistra) | SEBI-regulated |
| Physical delivery | No, cash only at maturity | Yes (coins/bars) | No |
| Secondary market | NSE/BSE (liquidity varies) | Direct platform (live rate) | NSE/BSE during market hours |
| Lock-in | 5 years minimum | None | None |
The yield comparison matters: SGBs paid 2.5% in cash annually. SafeGold Gains pays upto 4% in gold grams annually. At gold’s current trajectory, receiving yield in grams rather than cash is structurally more valuable. Your yield itself appreciates with gold. But SGBs were tax-free, and Gains yield is taxable as income.
If you’re questioning whether to move your idle gold position to a format with clearer investor protection than secondary-market SGBs now offer, ask: Is Paper Gold Safe in India? SGB vs ETF vs Digital Gold Explained
What Should Existing SGB Holders Do?
1) If you’re an original subscriber approaching 8-year maturity, hold to maturity unless you have a specific financial need. Your tax-free gain is the most valuable feature of any gold instrument in India, and surrendering it early for a marginal price difference is rarely optimal.
2) If you’re an original subscriber eligible for premature redemption, assess whether the current gold price (post-correction from January’s ATH) justifies redemption now versus waiting for 8-year maturity. Gold at ₹14,376/gram is still 3.6× the 2016 SGB issue prices. The absolute return is already extraordinary.
3) If you’re a secondary market buyer, your tax-free benefit no longer applies. Factor LTCG at 12.5% into your exit calculation. Check whether selling now at current gold prices vs holding to maturity changes your net outcome, especially if you bought near a previous high.
4) If you have no SGB and want gold exposure, use a Gold SIP or a lump-sum digital gold purchase on SafeGold. No lock-in, gold leasing income at 4% p.a. available, and capital gains at 12.5% after 24 months, the same LTCG treatment that secondary market SGB holders now face anyway.
Conclusion
Sovereign Gold Bonds are discontinued for new issues as of August 2026. The last tranche was February 2024. No FY 2026-27 issuance calendar has been announced, and the scheme is unlikely to restart while gold prices remain elevated relative to G-Sec yields.
For existing holders: original subscribers holding to 8-year maturity retain full tax-free status. Budget 2026 changed nothing for them. Secondary market buyers now face LTCG at 12.5%. For new investors, digital gold on SafeGold, starting at ₹10, with leasing available at 4% p.a. in gold grams, is the most feature-complete alternative currently available.
Start building your gold position on SafeGold and get the same 24K purity, with a full feature set that SGBs never offered (delivery, jewellery exchange, and leasing).
Frequently Asked Questions
Q. Is the Sovereign Gold Bond discontinued?
A. Yes. The Government of India has not issued any new SGB tranche since February 2024 (the 2023-24 Series IV, the last issue). No issuance calendar has been announced for FY 2025-26 or FY 2026-27. The scheme was discontinued in the Union Budget 2025 because rising gold prices made it too costly as a government borrowing instrument.
Q. Can I still buy Sovereign Gold Bonds in 2026?
A. No new SGB tranches are available. You can only buy existing SGBs from the secondary market (NSE/BSE), but note that secondary market buyers no longer receive the tax-free benefit at redemption. Budget 2026 restricted this to original RBI subscribers who hold to full 8-year maturity.
Q. Will SGBs come back?
A. The government has indicated SGBs could restart when they become cost-competitive with G-Secs. As of August 2026, no restart date has been announced. Monitor RBI’s official website (rbi.org.in) for future issuance calendar announcements.
Q. Is my existing SGB still tax-free?
A. If you subscribed during the original RBI issuance window and hold continuously to the full 8-year maturity date: yes, fully tax-free. If you bought from NSE/BSE (secondary market), your gains at redemption are now taxable with LTCG at 12.5% if held for 12+ months. Budget 2026 changed the rules only for secondary-market buyers.
Q. What is the best alternative to SGB in 2026?
A. For 5–8-year horizons: Gold ETF SIPs (SEBI-regulated; 12.5% LTCG after 12 months; no demat required for the FoF version). For complete feature access, including leasing at 4% p.a. in gold grams: digital gold on SafeGold (24K purity, Brink’s vault, Vistra ITCL trusteeship). For the government-backed equivalent to SGB interest: GMS Short Term Bank Deposit.
