Document title: Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2020-21 Series VII due on October 19, 2026 (October 20, 2026, being a holiday)
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1344
Date: October 16, 2026
Capital Markets and Flows
The RBI announces that the premature redemption of Sovereign Gold Bond (SGB) 2020‑21 Series VII will be effected on October 19, 2026, as October 20 is a holiday. The redemption price is fixed at ₹14,614 per unit. This price is derived from the simple average of the closing price of 999‑purity gold for the three business days preceding the redemption date, specifically October 14, October 15, and October 16, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA).
Regulatory and Policy Measures
According to Government of India notification F.No. 4(4)-B(W&M)/2020 dated October 09, 2020, premature redemption of a sovereign gold bond is permissible after the fifth year from its issue date, on the date when interest is payable. The SGB 2020‑21 Series VII was originally issued on October 20, 2020, making October 19, 2026 the earliest eligible date for premature redemption. The press release is signed by Deputy General Manager Ajit Prasad, Communications, RBI.
The premature redemption provision and the disclosed redemption price provide bondholders with a clear exit mechanism after the stipulated holding period.