RBI Sets Premature Redemption Price for Sovereign Gold Bonds 2020-21 Series I at ₹14,159
The Reserve Bank of India announced that the premature redemption price for the Sovereign Gold Bond 2020-21 Series I is set at ₹14,159 per unit. Investors who hold units in this specific series, which was originally issued on April 28, 2020, have the option to cash them in early on October 28, 2026. Under Government of India terms from April 2020, premature redemption is allowed after five years from the issue date, specifically on dates when interest payments occur. The central bank fixed the price based on a simple average of closing gold prices for 999 purity published by the India Bullion and Jewellers Association Ltd over three consecutive business days: October 23, October 26, and October 27, 2026. This price tells bondholders exactly how much money they will receive per unit if they choose to submit their bonds early. This explanation is not personal financial advice.
What was announced
On October 27, 2026, the Reserve Bank of India set the premature redemption price for Sovereign Gold Bond 2020-21 Series I at ₹14,159 per unit. The due date for this premature redemption window is October 28, 2026.
A government notification dated April 13, 2020, established the framework for this tranche, which was issued on April 28, 2020. Under those rules, early redemption is permitted after five years from the issue date on scheduled interest payment dates.
To determine the payout rate, the central bank calculated a simple average of closing prices for gold of 999 purity across three business days: October 23, October 26, and October 27, 2026. These market figures came from the India Bullion and Jewellers Association Ltd.
What it means
Holders of this gold bond series have an opportunity to return their units to the issuer before full maturity. Premature redemption is voluntary, offering bondholders liquidity on interest payment dates starting after five years.
The redemption figure relies on benchmark prices from the gold market. By averaging three days of gold rates reported by the India Bullion and Jewellers Association Ltd, the Reserve Bank of India set a fixed rate of ₹14,159 per unit for those opting out on October 28, 2026.
This analysis is for informational purposes only. It is not personal financial advice.
What the announcement does not tell us
The announcement does not state how many bondholders plan to redeem their units early or how many total units exist in this tranche. It also does not explain the exact procedural steps or administrative forms bondholders must submit to process a redemption request.
Furthermore, the release does not predict future gold price movements or state redemption prices for subsequent interest payment dates.
How this was written
This analysis was written with AI from the official announcement below, using only facts that announcement states. The quoted wording is Reserve Bank of India Press Releases’s own. Always check the original before acting on anything here.
In terms of GOI notification F.No. 4(4)-B(W&M)/2020 dated April 13, 2020 (SGB 2020-21 Series I - Issue date April 28, 2020) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranche shall be on October 28, 2026. 2. Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by
Opens www.rbi.org.in
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