RBI Fixes Redemption Price for Sovereign Gold Bonds (SGB) Set to Mature on July 2026
Premature Redemption Rules for SGB Series-V Specified by RBI
The Reserve Bank of India (RBI) has set forth the redemption price criteria for premature redemption of the Sovereign Gold Bond (SGB) 2018-19 Series-V. This specific instrument, which was issued on January 22, 2019, is subject to a defined timeline for early repurchase.As per government notification F.No. 4(22)-B(W&M)/2018 dated October 08, 2018, holders are permitted to prematurely redeem the Gold Bond after completing five years from its issue date. The designated next due date for premature redemption of this tranche is July 22, 2026.
Pricing Mechanism Based on Gold Standards
The determination of the SGB redemption price relies strictly on established commodity standards. The value is calculated using a simple average of the closing price of gold of 999 purity. This data must be sourced from the India Bullion and Jewellers Association Ltd (IBJA).This methodology ensures that the repayment aligns with real-time market stability for the underlying asset. The use of a three-day moving average helps mitigate short-term volatility when calculating the final redemption value.
Redemption Price Finalized at ₹14,218 per Unit
The RBI has officially announced the redemption price for premature redemption due on July 22, 2026. The fixed redemption price stands at ₹14,218/- (Rupees Fourteen Thousand Two Hundred and Eighteen Only) per unit of SGB.This figure is derived from the simple average calculation based on the closing prices recorded over three specific business days: July 17, July 20, and July 21, 2026. The issuance of this price clarifies the financial parameters for investors engaging in premature redemption.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.