The Reserve Bank of India (RBI) has announced the premature redemption price for Sovereign Gold Bonds (SGBs) issued in the 2019-20 Series VII, according to a release.
“In terms of GOI notification F.No.4(7)-B(W&M)/2019 dated September 30, 2019 (SGB 2019-20 Series-VII-Issue date December 10, 2019) 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,” the RBI release said. “Accordingly, the next due date of premature redemption of the above tranche shall be on June 10, 2026,” it added.
Redemption price linked to gold benchmark rates
The central bank said that 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 the India Bullion and Jewellers Association Ltd (IBJA).
“Accordingly, the redemption price for premature redemption due on June 10, 2026, shall be Rs 15,275 per unit of SGB based on the simple average of closing price of gold for the three business days i.e., June 05, June 08, and June 09, 2026,” it added.