The Reserve Bank of India announced the redemption price for premature redemption of Sovereign Gold Bond (SGB) 2019-20 Series X, effective September 11, 2026. This move allows bondholders to redeem their holdings before maturity, providing liquidity options for investors in the scheme, according to rbi.org.in.
The RBI's press release detailed that the redemption price will be calculated based on the simple average of closing prices of gold of 999 purity, published by the India Bullion and Jewellers Association Limited, for the last three business days preceding the date of redemption. This method ensures a fair market-linked valuation for bondholders opting for early exit.
Sovereign Gold Bonds are government securities denominated in grams of gold, offering an alternative to physical gold investment. The scheme has been popular among investors seeking to avoid risks associated with physical gold storage. The premature redemption option adds flexibility, aligning with similar provisions in previous series and supporting investor confidence in government-backed gold instruments.
The RBI's official notification on September 10, 2026, specifies the redemption price formula and confirms the premature redemption date as September 11, 2026. Investors holding the 2019-20 Series X bonds can initiate redemption from this date, as per the RBI's guidelines published on rbi.org.in.