The Reserve Bank of India announced the redemption price for premature redemption of Sovereign Gold Bonds (SGB) 2020-21 Series VII, due on October 19, 2026. The redemption price is fixed at ₹14,614 per unit, based on the average closing price of gold over the three business days preceding the redemption date, according to an RBI press release.
The premature redemption is permitted after the fifth year from the issue date of the bonds, which was October 20, 2020. The redemption price calculation uses the simple average of the closing price of 999 purity gold for October 14, 15, and 16, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). October 20, 2026, is a holiday, so the redemption date is set for October 19.
The Sovereign Gold Bond Scheme allows investors to hold gold in a paper form with interest benefits, providing an alternative to physical gold investment. The RBI’s announcement ensures transparency in pricing for premature redemption, aligning with the government’s notification from October 9, 2020. This scheme has been a key instrument for gold investment in India, offering a fixed interest rate and reducing the risks associated with physical gold.
The RBI’s Deputy General Manager Ajit Prasad signed the press release detailing the redemption price and conditions. Investors holding the SGB 2020-21 Series VII tranche can opt for premature redemption on October 19, 2026, at the specified price of ₹14,614 per unit.