3 weeks ago
RBI announces Rs 14,957 premature redemption price for SGBs
The Reserve Bank of India is the big bank that looks after money in India.
A Sovereign Gold Bond is a special certificate people can buy instead of buying real gold.
People who bought these bonds in 2020 can now choose to get their money back early on August 11, 2026.
The bank has announced that each bond will be worth Rs 14,957 when they cash it in.
That is much more than what buyers paid back in 2020, because the price of gold went up a lot.
Buyers in one series paid about Rs 4,070 per gram, and buyers in another series paid about Rs 5,334 per gram.
One group of buyers could earn more than 22% back each year on their money, and another group nearly 19%.
Bond holders also receive a small interest payment of 2.5% twice every year.
A new rule from the 2026 Budget says people may not have to pay tax if they keep the bond for the full eight years.
Cashing in early does not get that tax benefit, so investors should think carefully before deciding.
The RBI announced a premature redemption price of Rs 14,957 per unit for Sovereign Gold Bond scheme series SGB 2019-20 Series IX and SGB 2020-21 Series V, due on August 11, 2026.
The redemption price is based on the simple average of the closing price of 999-purity gold for August 6, 7 and 10, 2026, as published by the India Bullion and Jewellers Association Ltd (IBJA).
SGB 2019-20 Series IX investors are expected to gain 272% over six years and six months, an annualized return of over 22%, while SGB 2020-21 Series V investors are expected to gain 183% over six years, an annualized return of nearly 19%.
Sovereign Gold Bond investors also receive an additional interest of 2.5%, paid half-yearly.
Under Budget 2026 taxation changes, capital gains from SGBs are exempt from tax only if the bonds were bought during primary issuance and held for the full eight years to maturity; premature withdrawal does not qualify for the exemption.
- Who
- The Reserve Bank of India (RBI) announced the prices, affecting investors holding SGB 2019-20 Series IX and SGB 2020-21 Series V.
- What
- The premature redemption price of Rs 14,957 per unit was announced for two Sovereign Gold Bond series, based on recent gold closing prices.
- Where
- India
- When
- The redemption due date is August 11, 2026, with the price based on gold closing prices from August 6, 7 and 10, 2026.
- Why
- Sovereign Gold Bonds permit premature redemption after the fifth year from the date of issue, and the redemption price reflects the rise in gold prices since the bonds were issued in 2020.
Key facts
- Redemption price
- Rs 14,957 per unit of SGB
- Redemption due date
- August 11, 2026
- Issue price (SGB 2019-20 Series IX)
- Rs 4,070 per gram; Rs 4,020 via digital purchase
- Issue price (SGB 2020-21 Series V)
- Rs 5,334 per gram; Rs 5,284 via digital purchase
- Expected gain (SGB 2019-20 Series IX)
- 272% over six years and six months
- Expected gain (SGB 2020-21 Series V)
- 183% over six years
- Gold price in India (August 10, 2026)
- Rs 15,214 per gram
- Interest rate
- 2.5% paid half-yearly
Sources
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