RBI Sets Redemption Price for Sovereign Gold Bond 2020-21 Series I at ₹15,124
Why it matters
The Sovereign Gold Bond (SGB) 2020-21 Series I, originally issued on April 28, 2020, has reached its five-year mark, triggering the eligibility for premature redemption. According to the Ministry of Finance notification (F.No.4(4)-B(W&M)/2020), investors can opt for early encashment on the date interest becomes payable after the fifth year. For this tranche, the RBI has scheduled the redemption for April 28, 2026.
The valuation follows a transparent formula based on the simple average of the closing prices of 999 purity gold over the three business days preceding the redemption date. For the current cycle, the RBI utilized data from April 23, 24, and 27, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). The resulting price of ₹15,124 per unit reflects the prevailing market rates for 24-karat gold.
| Metric | Details |
|---|---|
| SGB Series | 2020-21 Series I |
| Issue Date | April 28, 2020 |
| Redemption Date | April 28, 2026 |
| Redemption Price | ₹15,124 per unit |
Glossary
SGB: Government securities denominated in grams of gold, serving as a paper-based alternative to physical gold holdings.
IBJA: India Bullion and Jewellers Association Ltd, the industry body whose closing rates serve as the official benchmark for SGB pricing.
NaukriSync Exam Angle
Indian Economy / Banking. The 5-year lock-in period for premature redemption is a frequent point of inquiry in banking exams. The use of 999 purity (24-karat) gold and the 3-day average price calculation by the IBJA are technical details likely to appear in MCQs regarding government debt instruments.