Document title: Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2021-22 Series VI due on September 07, 2026
Issuing authority: Reserve Bank of India (Department of Communication)
Reference number: Press Release: 2026-2027/1047
Date: September 04, 2026
Regulatory and Policy Measures
The Government of India notification F.No. 4(5)-B(W&M)/2021 dated May 12, 2021 permits premature redemption of Sovereign Gold Bonds after the fifth year from the issue date, on the date on which interest is payable. Accordingly, the premature redemption date for the SGB 2021-22 Series VI tranche is set for September 07, 2026. The redemption price is determined on the basis of the simple average of the closing price of 999‑purity gold for the three business days preceding the redemption date, i.e., September 02, September 03, and September 04, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). The calculated redemption price is ₹15,334 per unit (Rupees Fifteen Thousand Three Hundred and Thirty‑Four Only).
Capital Markets and Flows
The Sovereign Gold Bond (SGB) scheme, a government‑backed debt instrument linked to gold prices, allows investors to redeem their holdings at the specified price on the announced premature redemption date. The set price of ₹15,334 per unit reflects the market‑based valuation of gold and provides a clear exit option for bondholders, thereby facilitating liquidity and orderly market functioning for this segment of the capital markets.
Investors holding units of the SGB 2021-22 Series VI may submit redemption requests to their respective depositories, with settlement to occur on September 07, 2026, at the disclosed price. This announcement ensures transparency and aligns the redemption mechanism with the prevailing gold price dynamics as captured by the IBJA.
The RBI, through Deputy General Manager Ajit Prasad, has communicated this information to ensure market participants are fully informed of the redemption terms and timeline.
In conclusion, the RBI has formalised the premature redemption process for the SGB 2021-22 Series VI, setting the redemption price at ₹15,334 per unit based on the average closing gold price over the three days preceding September 07, 2026, thereby providing investors with a definitive redemption pathway as per the statutory framework.