What happened
The Reserve Bank of India has fixed the premature redemption price of Sovereign Gold Bond (SGB) 2019-20 Series V at ₹14,725 per unit. Early redemption for this tranche falls due on 15 October 2026.
To arrive at the figure, the RBI took the closing gold price (999 purity) for each of the three business days before redemption and averaged them. The closing prices come from the India Bullion and Jewellers Association Ltd (IBJA), and the days used were 12, 13 and 14 October 2026.
What it means for you
If you hold units of this series, you can exit early on 15 October 2026 at ₹14,725 per unit. Under the scheme, early exit is allowed only after the fifth year from issue, and only on a date when interest is payable.
The bond was issued on 15 October 2019, so this is the first window the tranche’s holders get for early redemption. The press release does not describe how to apply, so check the process with the bank, post office or agent through which you hold the bonds.
For example, if you hold 10 units, the redemption value at this price would be 10 × ₹14,725 = ₹1,47,250. This is an illustration of the arithmetic only. It ignores any interest due on the date or other charges, which the release does not cover.
Since the price is an average of three days, it can differ from the gold rate on the redemption day itself. You can compare gold values using our gold price calculator.
Background
The Sovereign Gold Bond Scheme lets investors hold gold in paper form, with the bond’s value tied to gold prices. The release cites a Government of India notification dated 30 September 2019 for this tranche.
Premature redemption is the term for cashing in a bond before its final maturity date. The release states the rule: it may be permitted after the fifth year, on an interest payment date. The next such date for this series is 15 October 2026.
For more RBI coverage, see our report on the RBI’s bond sale in an open market operation.
