The Reserve Bank of India has announced the SGB premature redemption price for the Sovereign Gold Bond 2019-20 Series-II. The redemption falls due on July 16, 2026. Investors holding this tranche can now plan their exit accordingly.
SGB Premature Redemption Price for July 16, 2026
The RBI has fixed the redemption price at ₹14,199 per unit for this premature redemption. This figure is based on the simple average closing price of 999-purity gold over three business days. Specifically, the IBJA-published prices for July 13, July 14, and July 15, 2026 were used to arrive at this value.
The India Bullion and Jewellers Association Ltd (IBJA) publishes daily gold closing prices. Therefore, the RBI uses this data as the standard benchmark for SGB redemptions. This method ensures the price reflects current market conditions fairly.
Key Details: Eligibility and Redemption Rules
Under the Government of India notification dated May 30, 2019, premature redemption is allowed after the fifth year from the issue date. The SGB 2019-20 Series-II was issued on July 16, 2019. As a result, July 16, 2026 marks the first eligible premature redemption date for this tranche.
Premature redemption is only permitted on dates when interest is payable. Additionally, investors must approach their holding bank, post office, or depository participant to initiate the process. However, redemption is not automatic — investors must submit a request in advance.
What This Means for SGB Investors
For investors who bought this bond at issue, the redemption price of ₹14,199 per unit represents significant appreciation. Gold prices have risen considerably since the 2019 issue date. Therefore, those redeeming early still stand to make a healthy return.
Meanwhile, investors who choose to hold on can continue earning 2.5% annual interest on the original issue price. The final maturity of SGB 2019-20 Series-II is July 16, 2027. For example, long-term holders may benefit further if gold prices continue to rise before full maturity.
Additionally, capital gains on SGBs held until final maturity remain tax-exempt for individual investors. This makes the SGB scheme one of the more tax-efficient ways to invest in gold in India.
Source: RBI Press Releases
