The Reserve Bank of India has announced the SGB premature redemption price for Sovereign Gold Bond 2019-20 Series V. Investors holding this tranche can redeem their bonds on October 15, 2026, at a price of ₹14,725 per unit.
Key Details of SGB Premature Redemption
The RBI issued SGB 2019-20 Series V on October 15, 2019, under a Government of India notification. As per the scheme rules, premature redemption is allowed after five years from the date of issue. Therefore, October 15, 2026, marks the next eligible premature redemption date for this tranche.
The redemption price is calculated using the simple average of gold’s closing price over the previous three business days. Specifically, the RBI used prices published by the India Bullion and Jewellers Association Ltd (IBJA) for October 12, 13, and 14, 2026. As a result, the final redemption price stands at ₹14,725 per unit of SGB.
What This Means for SGB Investors
For investors, this SGB premature redemption window offers a valuable opportunity to exit before the bond’s full eight-year maturity. However, redemption is only permitted on dates when interest is payable, as specified under the scheme guidelines.
Additionally, investors should note that the price reflects 999-purity gold rates, ensuring a fair market-linked valuation. Meanwhile, those who choose not to redeem early can continue to hold their bonds until final maturity. This flexibility makes Sovereign Gold Bonds an attractive option for gold investors in India.
If you hold units from this specific series, contact your bank, post office, or broker to initiate the redemption process before the due date. Furthermore, ensure your KYC details are up to date to avoid any delays in receiving the redemption amount.
Source: RBI Press Releases
