The Reserve Bank of India has fixed the premature redemption price for Sovereign Gold Bond 2020-21 Series-II at ₹7,732 per gram, effective for investors who exercise the option on 19 May 2026, according to rbi.org.in.
The central bank arrived at the rate by averaging the closing price of 999-purity gold published by the India Bullion and Jewellers Association (IBJA) during the week preceding the redemption window. Eligible bondholders must submit redemption requests through the bank, post office or stock-exchange depository participant where the units are held at least one day before the settlement date. The proceeds, net of any applicable taxes, will be credited to the registered bank account on the same day the price is applied.
The move gives investors an exit route four years before the scheduled 2030 maturity, a flexibility introduced to improve liquidity in the government-backed gold savings instrument. At the current indicative price, investors who bought the bonds at the ₹4,670-per-gram issue price in October 2020 stand to realise an annualised return of roughly 13 per cent, outperforming the 11 per cent compound annual growth rate in domestic gold prices over the same period. Comparable sovereign gold bonds maturing in 2028 are trading on the National Stock Exchange at yields of 2.1-2.3 per cent over government securities, signalling sustained retail appetite for the instrument.
The RBI will open the next premature redemption window for SGB 2020-21 Series-III on 19 August 2026, according to its published calendar. Bondholders weighing an early exit should watch the IBJA daily price feed through the second week of August, as the final redemption value will again be the simple average of that five-day reference period.
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