The Reserve Bank of India announced the redemption price for premature redemption of Sovereign Gold Bond (SGB) 2019-20 Series I, effective June 11, 2026. This move allows bondholders to redeem their holdings before maturity, with the RBI fixing the redemption price based on the prevailing gold rates, according to rbi.org.in.
The RBI's press release detailed that the redemption price for the SGB 2019-20 Series I will be calculated using 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 June 11, 2026. The announcement follows the standard procedure for premature redemptions under the SGB scheme, ensuring transparency and fairness for investors.
Sovereign Gold Bonds are government securities denominated in grams of gold, providing an alternative to physical gold investment. The scheme has been popular among investors seeking to avoid the risks and costs associated with physical gold. This redemption price announcement is part of the RBI's ongoing management of the SGB program, which has seen multiple series issued since its inception, offering a secure and interest-bearing gold investment option.
The RBI's official press release, dated June 10, 2026, confirms the redemption price and procedure, enabling investors holding the 2019-20 Series I bonds to plan their premature redemption accordingly. The detailed price calculation and redemption guidelines are available on the RBI website.