RBI Announces Early Redemption Price at ₹16,063 Per Unit for Two Sovereign Gold Bond Tranches

Investors holding select Sovereign Gold Bond (SGB) tranches are poised to realise significant gains as the window for premature redemption opens this month. The Reserve Bank of India (RBI) has declared the early redemption price for SGB 2020–21 Series VI and SGB 2020–21 Series XII, both scheduled for redemption in March 2026.

According to the RBI’s announcement, the premature redemption price has been fixed at ₹16,063 per unit for these two tranches of the Sovereign Gold Bond Scheme issued by the Government of India.

Bond Tranches Eligible for Redemption

The early redemption applies to the following SGB series:

• SGB 2020–21 Series VI: Issued on September 8, 2020, with premature redemption scheduled for March 7, 2026 (as March 8 is a holiday).
• SGB 2020–21 Series XII: Issued on March 9, 2021, with premature redemption available on March 9, 2026.

Method Used to Determine the Redemption Price

Under the Sovereign Gold Bond scheme guidelines, investors are allowed to opt for premature redemption after completing five years from the issue date, provided the request coincides with the scheduled interest payment date.

The redemption price is calculated using the simple average of the closing prices of 999 purity gold over the preceding three business days, as published by the India Bullion and Jewellers Association (IBJA).

For the current redemption cycle, the calculation was based on gold prices recorded on:

• March 4, 2026
• March 5, 2026
• March 6, 2026

Based on this three-day average, the RBI finalised the redemption price at ₹16,063 per SGB unit.

Substantial Gains for Investors

These tranches have delivered strong capital appreciation due to the sharp rise in gold prices over the past few years.

• Investors in SGB 2020–21 Series XII are likely to earn absolute returns of around 248%.
• Those holding SGB 2020–21 Series VI could see gains of approximately 217%.

These returns are calculated excluding the additional interest earnings, which further boost the overall investment performance.

Also Read: RBI Licence Cancellation of Shimsha Sahakara Bank Reinstated After Petition Withdrawal

Additional Interest Earnings

In addition to benefiting from gold price appreciation, SGB investors receive a fixed annual interest rateof 2.5%, paid semi-annually on the original investment amount.

This dual benefit of capital appreciation linked to gold prices and a guaranteed interest income continues to make Sovereign Gold Bonds an attractive investment option for long-term gold investors.

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.