What happened
The Reserve Bank of India (RBI) has announced that premature redemption of Sovereign Gold Bond (SGB) 2019-20 Series VI, due on 30 October 2026, will be at ₹14,213 per unit. The bonds were issued on 30 October 2019.
The price is the simple average of the closing gold price (999 purity) published by the India Bullion and Jewellers Association Ltd (IBJA) for the three business days of 27, 28 and 29 October 2026.
In a separate notice on 30 October, the RBI set the price for SGB 2021-22 Series VII, issued on 2 November 2021, at ₹14,167 per unit for redemption due on 2 November 2026. That price uses the IBJA closing prices for 28, 29 and 30 October 2026.
What it means for you
If you hold units of these tranches, the figures above are the per-unit amounts payable on the respective redemption dates. Each unit of an SGB represents one gram of gold.
Under the scheme notification, early exit is permitted only after the fifth year from the date of issue, and only on a date when interest is payable. The two tranches here reached that point on 30 October and 2 November 2026.
The price follows the average of three days of gold rates, not the rate on a single day, so it can differ from the spot price on the day of redemption. To compare gold-linked values, you can use the Gold Jewellery Price Calculator.
Background
The Sovereign Gold Bond Scheme is run by the Government of India, with the RBI publishing the redemption price for each tranche. The 2019-20 Series VI was covered under a notification dated 30 September 2019, and the 2021-22 Series VII under one dated 21 October 2021.
The averaging method, based on the previous three business days’ IBJA closing prices, is meant to smooth out one-day swings in the redemption value.
