The Reserve Bank of India (RBI) has announced the premature redemption details for Sovereign Gold Bond (SGB) 2021-22 Series III. The tranche, originally issued on June 08, 2021, becomes eligible for early redemption after completing 5 years.
The premature redemption date has been fixed as June 08, 2026. The redemption price has been calculated based on recent gold price averages as per prescribed norms.
Premature redemption under the SGB scheme is permitted only after the completion of 5 years from the issue date. The SGB 2021-22 Series III, issued on June 08, 2021, now meets this eligibility threshold.
Redemption is allowed on interest payment dates, aligning with scheme guidelines notified by the Government of India. Accordingly, June 08, 2026, has been designated as the official premature redemption date for this tranche.
The redemption price for Sovereign Gold Bonds is determined using a transparent pricing formula linked to gold market rates. It is calculated as the simple average of the closing price of gold of 999 purity over the previous 3 business days.
These prices are published by the India Bullion and Jewellers Association Ltd (IBJA). This methodology ensures that the redemption value reflects recent market trends in gold prices.
For the current redemption cycle, the applicable pricing period covers June 03, June 04, and June 05, 2026. Based on the simple average of gold prices across these days, the redemption price has been fixed at ₹15,512 per unit.
This value represents the amount payable per SGB unit upon premature redemption. The figure reflects prevailing bullion market fluctuations during the calculation window.
Sovereign Gold Bonds are government securities denominated in grams of gold and issued by the RBI on behalf of the Government of India. The 2021-22 Series III tranche carried a fixed interest rate payable semi-annually along with potential price-linked returns.
Investors holding this tranche have now completed the mandatory holding period required for early redemption. The scheme continues to offer an alternative to physical gold ownership while tracking gold prices.
Read More: India's Gold Discounts at All-Time High Post Duty Hike.
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The announcement of the premature redemption price at ₹15,512 per unit provides clarity for investors holding SGB 2021-22 Series III. The redemption process follows a standardised pricing mechanism based on IBJA gold rates over a defined period.
Eligibility conditions, including the 5-year holding requirement, have been met for this tranche as of June 2026. The development highlights the structured framework governing Sovereign Gold Bonds and their redemption process.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 8, 2026, 10:47 AM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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