Document title: Premature redemption under Sovereign Gold Bond (SGB) Scheme – Redemption Price for premature redemption of SGB 2018‑19 Series‑IV due on July 01, 2026
Issuing authority: Reserve Bank of India
Reference: Press Release 2026‑2027/579
Date: 30 June 2026
Regulatory and Policy Measures
The RBI, under the Government of India notification F.No.4(22)-B(W&M)/2018 dated 8 October 2018, permits premature redemption of sovereign gold bonds after the fifth year from the issue date on the interest‑payable date. Accordingly, the next permissible premature redemption date for the SGB 2018‑19 Series‑IV, issued on 1 January 2019, is 1 July 2026. The redemption price has been fixed at ₹14,086 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 25 June, 29 June and 30 June 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). The release is signed by Deputy General Manager Ajit Prasad of the RBI’s Communication Department.
Capital Markets and Flows
The redemption price reflects the prevailing market price of gold, linking the sovereign bond’s value to the commodity market. By using the IBJA’s published closing prices, the RBI ensures that the redemption amount mirrors the average market valuation of gold over the immediate pre‑redemption period.
The RBI’s announcement provides clarity on the redemption mechanism and price for the SGB 2018‑19 Series‑IV, confirming the July 1, 2026 redemption date and a unit price of ₹14,086 based on recent gold market averages, thereby facilitating investors’ planning for premature exit under the scheme.