SGB 2020-21 Series XI Premature Redemption Price Fixed at ₹14,564 Per Unit

The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series XI tranche. The tranche was originally issued on February 9, 2021.

Investors holding the bonds can opt for premature redemption after completing 5 years from the date of issue. RBI has also advanced the redemption date to August 7, 2026, as August 9 falls on a weekend.

SGB 2020-21 Series XI Premature Redemption Date

Investors holding SGB 2020-21 Series XI units can redeem their holdings on August 7, 2026. As per RBI norms, premature redemption of Sovereign Gold Bonds is permitted after 5 years from the date of issue on interest payment dates.

This facility allows investors to exit before the completion of the bond’s 8-year tenure. The redemption date was moved from August 9, 2026, because the scheduled date falls on a weekend.

SGB 2020-21 Series XI Redemption Price Details

RBI has fixed the premature redemption price at ₹14,564 per unit. The tranche was issued at ₹4,862 per gram for online investors, who received a digital discount of ₹50 per gram.

For offline investors, the issue price was ₹4,912 per gram. The redemption price is based on the simple average of the closing price of gold for August 4, August 5, and August 6, 2026.

Returns for SGB 2020-21 Series XI Investors

Based on the announced redemption price, investors who purchased the bonds online are set to receive absolute capital gains of ₹9,702 per unit. Investors who subscribed offline are set to receive gains of ₹9,652 per unit.

The redemption value represents an absolute return of approximately 199.50% for online investors. This means investors redeeming their holdings will receive roughly 3 times their original investment amount through capital appreciation.

How RBI Calculates SGB Redemption Price

The premature redemption price of Sovereign Gold Bonds is calculated using the simple average of the closing price of 999 purity gold for the previous 3 business days before redemption. These prices are published by the India Bullion and Jewellers Association Ltd (IBJA).

For SGB 2020-21 Series XI, the gold prices considered were ₹14,293.80 per gram on August 4, 2026, ₹14,557.70 per gram on August 5, 2026, and ₹14,836.10 per gram on August 6, 2026. The average of these prices resulted in the redemption price of ₹14,564 per unit.

Read More: Gold and Silver Prices Today, August 07, 2026.

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Conclusion

The RBI has announced a premature redemption price of ₹14,564 per unit for SGB 2020-21 Series XI. Eligible investors can redeem their holdings on August 7, 2026, after completing the required 5-year holding period. The redemption value has been determined using the average closing price of 999 purity gold over the preceding 3 business days.

In addition to capital gains arising from the increase in gold prices, investors would have also received annual interest at a fixed rate of 2.50%, credited semi-annually to their bank accounts and taxable as per their applicable income tax slab.

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.