RBI Sets Redemption Price for Sovereign Gold Bond 2020-21 Series I at ₹15,124
The Reserve Bank of India has fixed the premature redemption price for Sovereign Gold Bond 2020-21 Series I at ₹15,124 per unit. Effective from April 28, 2026, this price applies to investors exiting after the mandatory five-year holding period, calculated using the simple average of gold prices from the preceding three business days.
Key Facts
- Redemption Price: ₹15,124 per unit
- Applicable Series: SGB 2020-21 Series I
- Mandatory holding for premature exit: 5 years
- Benchmark: 3-day average of IBJA 999 purity gold prices
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.
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