The Reserve Bank of India (RBI) has set the premature redemption price for the Sovereign Gold Bond (SGB) 2021-22 Series VI, which is due on September 7, 2026. This announcement allows bondholders to redeem their investments before maturity at a specified price, providing flexibility to investors holding these government-backed gold bonds, according to rbi.org.in.
The RBI released the redemption price details through an official press release on its website. The premature redemption option is part of the SGB scheme's terms, enabling investors to exit their holdings before the bond's maturity date. The redemption price is calculated based on the simple average closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last three business days preceding the redemption date, as outlined by the RBI.
Sovereign Gold Bonds are government securities denominated in grams of gold, offering an alternative to physical gold investment with added benefits like interest payments and capital gains tax exemption on maturity. The premature redemption feature enhances liquidity for investors, aligning with the government's efforts to promote financial instruments linked to gold. This move follows previous RBI announcements on SGB schemes, which have seen steady investor interest due to their safety and returns compared to physical gold.
The premature redemption price for the SGB 2021-22 Series VI will be effective from September 7, 2026, as per the RBI's official notification. Investors holding these bonds can approach their respective banks or authorized agents to initiate the redemption process based on the announced price.