The Sovereign Gold Bond 2020-21 Series I tranche will be eligible for premature redemption on October 28, 2026. The Reserve Bank of India has set the redemption price at ₹14,159 per unit.
BKK Bureau, New Delhi | 27 October 2026 | 11:58 PM IST
The Reserve Bank of India has announced a premature redemption price of ₹14,159 per unit for the Sovereign Gold Bond (SGB) 2020-21 Series I tranche. The redemption is due on October 28, 2026, according to an RBI press release issued on October 27.
The tranche was issued on April 28, 2020. Under the terms referenced by the RBI, premature redemption of a Sovereign Gold Bond may be permitted after the completion of five years from the issue date, but only on an interest-payment date. The October 28, 2026 date is the next due date for premature redemption of this specific tranche.
The redemption price has been determined using the prescribed method for SGBs. It is based on the simple average of the closing price of gold of 999 purity during the three business days before the redemption date. The gold prices used for this calculation were the closing prices published by the India Bullion and Jewellers Association Ltd for October 23, October 26 and October 27, 2026.
Based on that three-day average, the RBI said the redemption value will be ₹14,159 for each unit of the SGB. The announcement applies specifically to SGB 2020-21 Series I and does not state a redemption price for other Sovereign Gold Bond tranches.
The RBI release cites the Government of India notification F.No. 4(4)-B(W&M)/2020 dated April 13, 2020, in connection with the terms of the Sovereign Gold Bond Scheme. The notification and the scheme terms form the basis for allowing premature redemption after the fifth year on an applicable interest-payment date.
The price announcement provides the value to be used for eligible premature redemptions due on October 28, 2026. The calculation is linked to the notified gold-price methodology rather than to a separately announced fixed price for all SGBs.
Key details
- Instrument: Sovereign Gold Bond 2020-21 Series I
- Issue date: April 28, 2020
- Premature redemption date: October 28, 2026
- Redemption price: ₹14,159 per unit
- Gold-price reference dates: October 23, October 26 and October 27, 2026
- Price reference: Simple average of closing prices for 999-purity gold published by IBJA
The RBI’s announcement is issued by its Communications Department and identifies Ajit Prasad, Deputy General Manager, as the signatory. It gives holders of the specified tranche the officially determined value for the scheduled premature-redemption date.
Why it matters
The announcement gives holders of SGB 2020-21 Series I the official per-unit redemption value and confirms the date on which premature redemption is available under the scheme’s rules. It also clarifies that the value is calculated from the three-business-day average of IBJA’s closing gold prices for 999-purity gold.
Source: Reserve Bank of India
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