The Reserve Bank of India announced the redemption price for premature redemption of Sovereign Gold Bond (SGB) 2020-21 Series-III, which is due on June 16, 2026. This move allows bondholders to redeem their holdings before the maturity date, with the RBI specifying the applicable price for such redemptions, according to the official press release from the central bank.
The RBI's announcement details the redemption price calculation methodology for premature redemption of the SGB 2020-21 Series-III. The price is 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 working days preceding the date of redemption. This ensures that investors receive a fair market value for their bonds if they choose to redeem early.
Sovereign Gold Bonds are government securities denominated in grams of gold, offering an alternative to physical gold investment. The premature redemption option provides liquidity to investors who may need to exit their investment before maturity. This announcement aligns with RBI's ongoing efforts to maintain transparency and investor confidence in government-backed gold investment schemes, which have seen steady participation over recent years.
The RBI's press release, dated June 15, 2026, confirms that premature redemption requests for the SGB 2020-21 Series-III will be processed at the specified redemption price on June 16, 2026. Investors holding these bonds can refer to the RBI's official website for detailed terms and conditions related to the redemption process.