The Reserve Bank of India has announced the SGB premature redemption price for Sovereign Gold Bond 2018-19 Series V. The redemption is due on July 22, 2026. Investors holding this tranche can now plan their exit with full clarity on the payout.
SGB Premature Redemption Price for July 22, 2026
The RBI has fixed the redemption price at ₹14,218 per unit for this tranche. This figure is based on the simple average of gold’s closing price over three business days. Specifically, the IBJA-published prices for July 17, July 20, and July 21, 2026 formed the basis of this calculation. The gold purity considered is 999 (24 karats).
As per the scheme rules, premature redemption becomes eligible after five years from the issue date. Therefore, bonds issued on January 22, 2019 qualify for early exit from January 2024 onwards. Additionally, redemption is only permitted on interest payment dates, which occur every six months.
Key Details Investors Should Know
The India Bullion and Jewellers Association Ltd (IBJA) officially publishes the gold closing prices. The RBI uses these prices to calculate all SGB redemption values. However, investors must note that the redemption price can vary for each tranche based on prevailing gold rates.
For this series, the original issue date was October 8, 2018, under GOI notification F.No. 4(22)-B(W&M)/2018. Meanwhile, the bond was actually issued to investors on January 22, 2019. As a result, the premature redemption window opened in January 2024, and July 22, 2026 marks the next eligible date.
What This Means for SGB Investors
Investors choosing to redeem early will receive ₹14,218 per unit directly into their registered bank accounts. This represents a significant gain for those who entered at the original issue price. For example, the issue price in January 2019 was substantially lower than today’s redemption value.
Those who do not opt for premature redemption can continue to hold their bonds until maturity. Additionally, they will keep earning the 2.50% per annum interest on the nominal value. However, investors should evaluate current gold prices and their personal financial goals before deciding.
For full details, refer to the official RBI announcement linked below.
Source: RBI Press Releases
