The Reserve Bank of India has announced the SGB premature redemption price for Sovereign Gold Bond 2020-21 Series IV. Investors who opt for early exit on July 14, 2026, will receive ₹14,307 per unit. This price applies to bonds originally issued on July 14, 2020.
Key Details of the SGB Premature Redemption
The RBI calculates the SGB premature redemption price using the simple average of gold’s closing price over the previous three business days. For this tranche, the reference days are July 9, July 10, and July 13, 2026. The India Bullion and Jewellers Association Ltd (IBJA) publishes these closing prices for gold of 999 purity.
Therefore, the final redemption price comes to ₹14,307 per unit. This figure reflects current gold market conditions at the time of exit. Additionally, investors should note that this rate applies only to those choosing premature redemption on this specific due date.
Who Is Eligible and What This Means for Investors
Under the Sovereign Gold Bond Scheme, premature redemption is permitted after the fifth year from the date of issue. As a result, July 14, 2026, marks the first eligible premature redemption window for this series. Interest payment dates determine when investors can exercise this option.
However, investors who hold their bonds until the full eight-year maturity may receive a different redemption value. Meanwhile, those choosing to exit early on July 14, 2026, must coordinate with their bank or holding institution in advance. This ensures a smooth and timely redemption process.
For context, the original issue date was July 14, 2020, under GOI notification F.No.4(4)-B(W&M)/2020 dated April 13, 2020. The SGB premature redemption window offers investors flexibility without forcing them to wait the full tenure. Additionally, capital gains on early redemption by individuals remain exempt from tax, making this an attractive option for eligible bondholders.
For more information, investors can refer to the official RBI press release or contact their bank directly. The RBI continues to facilitate transparent pricing for all sovereign gold bond tranches.
Source: RBI Press Releases
