RBI announces redemption price for SGB premature exit on June 16, 2026

The Reserve Bank of India (RBI) has set ₹14,774 per unit as the redemption price for premature exit of Sovereign Gold Bond (SGB) 2020-21 Series-III on June 16, 2026. This price is based on the average closing price of gold (999 purity) for June 11, 12, and 15, 2026, as published by IBJA.

Under the Sovereign Gold Bond Scheme, premature redemption is allowed after five years from the issue date, aligning with the interest payment schedule. The SGB 2020-21 Series-III was issued on June 16, 2020, making June 16, 2026, the next eligible date for early redemption.

The redemption price calculation follows a standard formula: the simple average of the closing prices of gold (999 purity) over the three business days preceding the redemption date. For this tranche, the average was derived from the IBJA-published prices for June 11, June 12, and June 15, 2026.

SGBs are a government-backed investment instrument offering returns linked to gold prices, along with periodic interest. Premature redemption provides liquidity to investors while ensuring they benefit from prevailing gold market rates.

This announcement is significant for investors planning to exit their SGB holdings early, as it provides clarity on the financial returns they can expect.

Key Points
- RBI announced ₹14,774 per unit as the SGB redemption price.
- The redemption date for SGB 2020-21 Series-III is June 16, 2026.
- Price is based on gold's average closing price for June 11, 12, and 15, 2026.
- Premature redemption is allowed after five years from the issue date.
- Gold prices were sourced from IBJA for calculation.

FAQ

What is the redemption price for SGB on June 16, 2026?
The redemption price is ₹14,774 per unit, based on gold prices from June 11, 12, and 15, 2026.

When is premature redemption allowed for SGB 2020-21 Series-III?
Premature redemption is allowed on June 16, 2026, five years after the issue date.