The Sovereign Gold Bond tranche, issued on October 20, 2020, will be eligible for premature redemption on October 19, 2026 because October 20 is a holiday. The redemption price is based on the average closing price of 999-purity gold over the previous three business days.
BKK Bureau, New Delhi | 17 October 2026 | 9:27 AM IST
The Reserve Bank of India has set the premature redemption price for Sovereign Gold Bond (SGB) 2020-21 Series VII at ₹14,614 per unit. The redemption is due on October 19, 2026, with October 20 being a holiday.
The tranche was issued on October 20, 2020. Under the applicable rules for the Sovereign Gold Bond Scheme, premature redemption may be permitted after the completion of five years from the issue date, on an interest-payment date. The RBI said the redemption date for this tranche has therefore been fixed as October 19, 2026.
The redemption value is determined using the simple average of the closing price of gold of 999 purity for the three business days preceding the redemption date. The RBI said the relevant business days for this calculation were October 14, October 15 and October 16, 2026.
The gold prices used for the calculation are those published by the India Bullion and Jewellers Association Ltd (IBJA). Based on the prescribed three-day average, the RBI has announced a redemption price of ₹14,614 for each unit of SGB 2020-21 Series VII.
The announcement applies specifically to the Series VII tranche of the 2020-21 Sovereign Gold Bond programme. It identifies both the date on which eligible premature redemption is due and the price that will apply for the redemption of each unit. The RBI release cites the Government of India notification dated October 9, 2020, relating to the scheme and the relevant tranche.
Sovereign Gold Bonds are issued in units, and the RBI’s announcement uses the unit as the basis for stating the redemption amount. The release does not alter the stated pricing formula; instead, it applies the existing formula to the reference gold prices for the three specified business days.
For holders of this particular tranche, the announcement provides the operational details needed for the scheduled premature redemption: the applicable date, the reason for the one-day adjustment from the issue-date anniversary, the reference-price period and the resulting amount per unit. The RBI issued the communication on October 16, 2026.
Why it matters
- The announcement establishes the amount payable for premature redemption of SGB 2020-21 Series VII at ₹14,614 per unit.
- It clarifies that redemption will be processed on October 19, 2026 because October 20 is a holiday.
- It shows how the RBI applied the scheme’s prescribed three-business-day average of IBJA-published 999-purity gold prices to determine the redemption value.
Why it matters
The RBI’s notification gives holders of SGB 2020-21 Series VII the precise premature redemption date and price, while documenting the reference period and pricing formula used to calculate the amount.
Source: Reserve Bank of India
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