The Reserve Bank of India has announced the SGB premature redemption price for Sovereign Gold Bond 2021-22 Series VII. Investors holding this tranche can redeem their bonds on November 02, 2026, at a price of ₹14,167 per unit.
Key Details of the SGB Premature Redemption
The redemption price is based on the simple average closing price of 999-purity gold over three business days. Specifically, the RBI used gold prices from October 28, October 29, and October 30, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA). Therefore, the final rate works out to ₹14,167 per unit of SGB.
This tranche was originally issued on November 02, 2021, under GOI notification F.No. 4(5)-B(W&M)/2021 dated October 21, 2021. As a result, the fifth anniversary falls on November 02, 2026, making that the eligible premature redemption date. Additionally, premature redemption is only permitted on dates when interest is payable.
What This Means for SGB 2021-22 Investors
Sovereign Gold Bonds carry an eight-year maturity period. However, investors have the option to exit early after the fifth year. For this series, November 02, 2026, is therefore the first available premature redemption window.
Meanwhile, investors who choose not to redeem early can continue holding their bonds until full maturity in 2029. Those who do opt for premature redemption will receive ₹14,167 per unit directly in their bank accounts. For example, an investor holding 10 units would receive ₹1,41,670 in total.
The IBJA gold price benchmark ensures a transparent and market-linked payout. Additionally, this rate reflects the strong performance of gold prices over recent years. Investors who bought these bonds at the original issue price have therefore seen significant appreciation in value.
About Sovereign Gold Bonds
The Government of India issues Sovereign Gold Bonds as a safe alternative to holding physical gold. The RBI manages the scheme on behalf of the government. Each unit represents one gram of gold, and bondholders also earn an annual interest of 2.5% on the issue price. As a result, SGBs offer both capital appreciation and a fixed income stream.
Eligible investors should contact their holding bank, broker, or depository participant to initiate the premature redemption process before the due date.
Source: RBI Press Releases
