What happened
The Reserve Bank of India (RBI) has set the premature redemption price of Sovereign Gold Bond (SGB) 2020-21 Series VII at ₹14,614 per unit. The redemption is due on 19 October 2026.
The bonds were issued on 20 October 2020. Since 20 October 2026 is a holiday, the redemption date moves to Monday, 19 October.
To arrive at the price, the RBI took the closing rates for 999-purity gold on 14, 15 and 16 October 2026, as reported by the India Bullion and Jewellers Association Ltd (IBJA), and averaged them. That means adding the three prices and dividing by three.
What it means for you
If you hold units of this series, you can exit early on the due date at ₹14,614 for each unit. Under the scheme’s terms, early exit is permitted only after the fifth year from issue, and only on a date when interest is payable.
The price is not the gold rate on the day itself. It is an average of three earlier days, so it can differ from the spot price on 19 October. You can check current jewellery prices with our gold price calculator.
Background
The Sovereign Gold Bond scheme is a Government of India scheme in which bonds are denominated in units of gold. The RBI announces the redemption price ahead of each premature redemption date, following the notification dated 9 October 2020 that governs this series.
