Sovereign Gold Bond Redemption Price Set At ₹14,092 For Premature Redemption on January 16, 2026

The Government of India has announced the premature redemption details for the Sovereign Gold Bond (SGB) 2019‑20 Series‑II, which becomes eligible for early exit on January 16, 2026. The bond, originally issued on July 16, 2019, allows premature redemption after completion of 5 years from the date of issue on interest‑payment dates.

The Reserve Bank of India (RBI) has confirmed that the applicable redemption price has been calculated using the prescribed method. The price reflects the simple average of gold prices of 999 purity published by the India Bullion and Jewellers Association Ltd (IBJA) for January 12, January 13, and January 14, 2026.

Regulatory Basis for Premature Redemption

The premature redemption framework for the SGB 2019‑20 Series‑II is governed by the Government of India notification F.No.4(7)-B(W\&M)/2019 dated May 30, 2019. Under these rules, bondholders may avail early redemption only after completing 5 years from the issue date.

Redemption is permitted exclusively on interest‑payment dates. For this tranche, July 16, 2019, marked the issue date, making January 16, 2026, the next eligible redemption date. These provisions ensure a structured exit mechanism while maintaining policy uniformity across SGB issuances.

Sovereign Gold Bond Structure and Investor Eligibility

The SGB scheme enables investors to gain exposure to gold without holding the physical metal. Bonds are issued by the Government of India and carry sovereign backing. They offer interest payments at defined intervals along with redemption linked to the market price of gold of 999 purity.

Investors include individuals, HUFs, trusts, universities, and charitable institutions. Exit before maturity is allowed only as per the premature redemption schedule, ensuring clarity on timelines for bondholders.

Redemption Price

The redemption price is determined using the simple average of the closing prices of gold of 999 purity for the 3 business days preceding the redemption date. For the January 16, 2026, redemption, IBJA-published prices for January 12, January 13, and January 14, 2026, were used.

Based on this average, the final redemption price has been fixed at ₹14,092 per unit of SGB. This method ensures transparency, uniform application, and direct linkage to prevailing bullion market conditions.

Read More: India’s Gold ETF Holdings Hit Record 95 Tonnes.

Conclusion

The premature redemption price for SGB 2019–20 Series-II has been fixed at ₹14,092 per unit for January 16, 2026. The amount has been calculated using the mandated three-day average gold price method.

The notification confirms compliance with the Government of India’s prescribed redemption mechanism. This structured process provides clarity, transparency and fle

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