SGB 2021-22 Series I: Premature Redemption Starts Today; Check Price and Returns

The Reserve Bank of India has announced the premature redemption details for Sovereign Gold Bond (SGB) 2021-22 Series I.

Investors holding this SGB tranche can opt for premature redemption starting today, May 25, 2026.

Premature Redemption Price Fixed At ₹15,840

The RBI has set the premature redemption price at ₹15,840 per unit.

The price has been calculated using the simple average of closing gold prices for the last 3 business days:

• May 20, 2026
• May 21, 2026
• May 22, 2026 

The gold prices are based on 999 purity gold rates published by the India Bullion and Jewellers Association (IBJA).

Investors Earn Over 230% Returns

The SGB 2021-22 Series I was originally issued at:

• ₹4,777 per unit for offline investors
• ₹4,727 per unit for online investors 

Based on the redemption price of ₹15,840, investors are receiving returns of over 231% on their investment.

When Is Premature Redemption Allowed?

According to RBI rules, Sovereign Gold Bonds can be redeemed prematurely after completing 5 years from the date of issue.

Premature redemption is allowed only on interest payment dates.

How To Redeem SGBs Prematurely?

Investors can submit redemption requests through:

• Banks
• SHCIL offices
• Post offices
• Authorised agents 

The request should be made at least 1 day before the interest payment date.

The redemption amount will be credited directly to the investor’s registered bank account.

Read More: India to Provide Insurance Cover for All Vessels Linked to Domestic Trade, Says DFS Secretary M Nagaraju.

Why Have SGBs Delivered Strong Returns?

The sharp rise in gold prices over the past few years has significantly increased returns for SGB investors.

In addition to capital appreciation, SGB investors also earn annual interest income from the bonds, making them a popular long-term investment option.

Conclusion

The premature redemption of SGB 2021-22 Series I offers strong gains for investors, with returns crossing 230% since issuance. Investors planning to redeem their bonds should complete the process through their designated bank or authorised institution within the prescribed timeline.

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