RBI Sets SGB Premature Redemption Price At ₹14,957 For August 11, 2026

The Reserve Bank of India (RBI) has announced the premature redemption price for 2 Sovereign Gold Bond (SGB) tranches eligible for redemption on August 11, 2026. The redemption price has been fixed at ₹14,957 per unit based on prevailing domestic gold prices.

The eligible tranches are SGB 2019-20 Series IX and SGB 2020-21 Series V. The announced redemption value highlights the increase in gold prices since these bonds were originally issued.

SGB 2019-20 Series IX Redemption Gain Details

SGB 2019-20 Series IX was issued on February 11, 2020, at ₹4,070 per gram. The premature redemption price of ₹14,957 per gram represents a capital appreciation of about 267.5% over the issue price.

Investors who subscribed through the online mode at the discounted issue price of ₹4,020 per gram would realise a gain of approximately 272%. The bond carries a 2.5% annual interest rate and is scheduled to mature on February 11, 2028.

SGB 2020-21 Series V Premature Redemption Price Explained

SGB 2020-21 Series V was issued on August 11, 2020, at ₹5,334 per gram. Based on the redemption price of ₹14,957 per gram, investors stand to gain around 180.4% on the original issue price.

Those who purchased the bond through online payment channels at ₹5,284 per gram would record a gain of about 183.0%. This tranche also offers a 2.5% annual interest rate and is set to mature on August 11, 2028.

How RBI Calculates Sovereign Gold Bond Redemption Price

The premature redemption price of SGBs is determined using the simple average closing price of 999-purity gold for the previous 3 business days. These prices are published by the India Bullion and Jewellers Association (IBJA).

For the August 11, 2026, redemption date, the calculation was based on gold prices recorded on August 6, 2026, August 7, 2026, and August 10, 2026. Using this methodology, the redemption price was fixed at ₹14,957 per gram.

What SGB Investors Should Know Before Premature Redemption

Premature redemption of Sovereign Gold Bonds is permitted only after 5 years from the date of issue and can be exercised on interest payment dates. The percentage gains associated with these tranches reflect only the increase in redemption value and do not include the 2.5% annual interest paid during the holding period.

Investors in SGB 2019-20 Series IX are redeeming approximately 18 months before maturity, while investors in SGB 2020-21 Series V are exiting about 2 years before maturity. The redemption value remains linked to domestic gold prices, whereas the annual interest continues to be calculated on the original investment amount rather than the prevailing value of the bond.

Read More: India Gold Demand Falls 6% In Q2.

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Conclusion

The RBI has fixed the premature redemption price for eligible Sovereign Gold Bond tranches at ₹14,957 per gram for August 11, 2026. Both SGB 2019-20 Series IX and SGB 2020-21 Series V have delivered substantial capital appreciation compared with their respective issue prices.

The redemption amount has been determined using the average IBJA gold prices over the previous 3 business days. In addition to the capital appreciation, eligible investors have also received the fixed 2.5% annual interest payable on the initial investment amount.

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.