Regulatory and Policy Measures
The Reserve Bank of India, under the authority of Government of India notification F.No. 4(4)-B(W&M)/2020 dated April 13, 2020, reiterates that premature redemption of Sovereign Gold Bonds (SGB) is permissible after the fifth year from the date of issue, on the date on which interest is payable. Accordingly, the next eligible date for premature redemption of the SGB 2020-21 Series I tranche is October 28, 2026.
The redemption price for this premature redemption will be ₹14,159 per unit. This price is calculated as the simple average of the closing price of 999‑purity gold for the three business days preceding the redemption date, specifically October 23, October 26, and October 27, 2026. The price data is sourced from the India Bullion and Jewellers Association Ltd (IBJA).
The press release is signed by Deputy General Manager Ajit Prasad (Communications) of the RBI’s Department of Communication.
The RBI’s announcement provides investors with the exact redemption price and the methodology used, ensuring transparency and facilitating the exercise of the premature redemption option by eligible bondholders.
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