NEW DELHI — The Reserve Bank of India (RBI) on Thursday fixed the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series VI at Rs 14,213 per unit, with the redemption due on Friday, October 30, 2026, IANS reported, citing the central bank's notification.
Source: IANS
The tranche was originally issued on October 30, 2019. Under the Government of India's Sovereign Gold Bond Scheme notification, premature redemption of a gold bond may be permitted after the fifth year from the date of issue, on a date on which interest is payable — which makes October 30, 2026 the next due date for this tranche, the RBI said.
The redemption price of Rs 14,213 per unit is based on the simple average of the closing price of gold of 999 purity for the three previous business days — October 27, October 28 and October 29, 2026 — as published by the India Bullion and Jewellers Association Ltd (IBJA), according to the RBI notification, also reported by Nation Press.
Source: Nation Press
Gold bonds under the scheme may be held by a trust, a Hindu Undivided Family (HUF), a charitable institution, a university, or a person resident in India — being an individual, either in their own capacity, on behalf of a minor child, or jointly with another individual, the RBI noted.
The announcement is the latest in a series of scheduled SGB redemption windows this autumn. Earlier, in September, the RBI had fixed the premature redemption price of the SGB 2021-22 Series VI at Rs 15,334 per unit; that tranche was issued on September 7, 2021, and its premature redemption fell due on September 7, 2026, IANS reported.
Holders of SGB 2019-20 Series VI who wish to exit early can redeem at Rs 14,213 per unit on the due date, October 30, 2026, through the channel where they hold the bonds. Those who hold on keep earning the scheme's interest until maturity or a later redemption window.