RBI Sets Premature Redemption Price for SGB 2020-21 Series VIII
The Reserve Bank of India has fixed the premature redemption price at ₹16,012 per unit for the Sovereign Gold Bond 2020-21 Series VIII, effective May 18, 2026. This value is derived from the average of IBJA closing prices for 999 purity gold over three business days.
Investors holding Sovereign Gold Bond (SGB) 2020-21 Series VIII have a window for premature redemption on May 18, 2026. Under scheme guidelines, this exit option becomes available five years after the initial issuance on November 18, 2020, aligned with scheduled interest payment dates.
The redemption price of ₹16,012 per unit was calculated using the simple average of the closing prices of gold (999 purity) recorded by the India Bullion and Jewellers Association Ltd (IBJA) from May 13 to May 15, 2026.
- Bond Series: SGB 2020-21 Series VIII
- Redemption Price: ₹16,012 per unit
- Calculation Basis: Simple average of IBJA closing prices (May 13-15, 2026)
- Lock-in condition: Premature exit permitted after five years
Glossary
Sovereign Gold Bond (SGB): Government securities denominated in gold grams, serving as an alternative to physical gold investment.
IBJA: India Bullion and Jewellers Association Ltd; the designated agency for calculating gold price benchmarks in SGB transactions.
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