Document title: Premature Redemption under Sovereign Gold Bond (SGB) Scheme – Redemption Price for SGB 2019‑20 Series III
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/885
Date: August 13, 2026
Capital Markets and Flows
The Reserve Bank of India has announced the redemption price for the premature redemption of Sovereign Gold Bond (SGB) 2019‑20 Series III, which is scheduled for August 14, 2026. The price is fixed at ₹15,310 per unit. This price is derived from the simple average of the closing prices of 999‑purity gold for the three business days preceding the redemption date – specifically August 11, August 12, and August 13, 2026 – as published by the India Bullion and Jewellers Association Ltd (IBJA).
Regulatory and Policy Measures
The redemption follows the Government of India notification F.No. 4(7)-B(W&M)/2019 dated May 30, 2019, which permits premature redemption of sovereign gold bonds after the fifth year from the issue date, on the date on which interest is payable. The SGB 2019‑20 Series III was issued on August 14, 2019; therefore, the earliest permissible premature redemption date is August 14, 2026, exactly five years after issuance. The RBI’s communication reiterates that the redemption price calculation methodology and eligibility criteria are in accordance with the said notification.
The press release, numbered 2026‑2027/885, is signed by Deputy General Manager Ajit Prasad of the RBI Communications Department.
In conclusion, the RBI has provided a clear, formula‑based redemption price for SGB 2019‑20 Series III, aligning with the statutory framework and ensuring transparency for bondholders seeking premature redemption after the stipulated five‑year period.