Document title: Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2020-21 Series XII due on September 09, 2026
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release: 2026-2027/1071
Date: September 08, 2026
Capital Markets and Flows
The RBI announced that the premature redemption of Sovereign Gold Bond (SGB) 2020‑21 Series XII will occur on September 09, 2026. The redemption price has been fixed at ₹15,355 per unit. The price is derived from the simple average of the closing prices of 999‑purity gold for the three business days preceding the redemption date, namely September 04, September 07 and September 08, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA).
Regulatory and Policy Measures
Under Government of India notification F.No. 4(4)-B(W&M)/2020 dated October 09, 2020, premature redemption of SGBs is permissible after the fifth year from the issue date on the interest payment date. The SGB 2020‑21 Series XII was issued on March 09, 2021, making September 09, 2026 the first eligible date for early redemption. The RBI, through this press release, is implementing the provisions of the notification.
This redemption exercise provides investors with a clear exit option at a price linked to recent market gold rates, reflecting the RBI’s commitment to transparency in the sovereign gold bond programme.