Sovereign Gold Bond premature redemption terms for the 2020-21 Series-III tranche are set by RBI as the next eligible premature redemption date falls on June 16, 2026. Sovereign Gold Bond premature redemption allows bondholders to exit before maturity after completion of five years, with the redemption price based on recent gold prices. RBI has specified the redemption price at ₹14,774 per unit for premature redemption due on June 16, 2026, calculated as the simple average of closing gold prices for the previous three business days.
Quick Summary
- RBI sets redemption price for premature redemption of Sovereign Gold Bond 2020-21 Series-III
- Premature redemption possible after 5 years from June 16, 2020 issue date
- Redemption price for June 16, 2026 is ₹14,774 per unit based on average gold price
- Premature redemption date and price announced for investors in this SGB tranche
What RBI announced
RBI issued a notification regarding premature redemption under the Sovereign Gold Bond (SGB) Scheme for the 2020-21 Series-III tranche issued on June 16, 2020. The notification confirms that the next due date for premature redemption of this tranche is June 16, 2026. RBI also announced the redemption price applicable for premature redemption on that date.
Key decision in simple terms
Investors holding the Sovereign Gold Bond 2020-21 Series-III, which was issued on June 16, 2020, can opt for premature redemption starting from June 16, 2026. The redemption price is calculated as the simple average of the closing price of gold of 999 purity for the three business days preceding the redemption date. For the upcoming premature redemption due on June 16, 2026, this price is fixed at ₹14,774 per unit of the bond.
Who is affected
Investors who subscribed to the Sovereign Gold Bond 2020-21 Series-III tranche issued on June 16, 2020, are eligible for premature redemption starting June 16, 2026. This applies to individual or institutional bondholders who may wish to redeem their bonds after completing five years from the issue date, before the final maturity date.
Impact on banks, NBFCs, customers or borrowers
Banks and non-banking financial companies (NBFCs) acting as agents or facilitators for SGBs need to process premature redemption requests based on the announced price. Customers holding the specified SGB tranche will receive ₹14,774 per unit on premature redemption as per RBI guidance. Borrowers are not directly affected as this scheme is investment-oriented, but customers redeeming bonds will be affected by the redemption price determined by RBI per gold market rates.
Key dates, numbers or rules
The key date for premature redemption under the 2020-21 Series-III SGB is June 16, 2026. The redemption price is based on a simple average of the closing gold price for the last three business days (June 11, June 12, and June 15, 2026) as published by the India Bullion and Jewellers Association Ltd (IBJA). This price has been fixed at ₹14,774 per unit of the Sovereign Gold Bond. Premature redemption is permitted only after completing five years from the date of issue, effective from interest payment dates.
What readers should watch next
Investors holding Sovereign Gold Bonds should track RBI announcements for subsequent tranches and redemption prices. Those planning to redeem early must verify the redemption price based on current gold rates and consult official RBI notifications for process details and documentation. Future RBI releases could update procedures or prices for other SGB series as they become eligible for premature redemption.
Frequently Asked Questions
What is the earliest date for premature redemption under the Sovereign Gold Bond 2020-21 Series-III?
Premature redemption for the SGB 2020-21 Series-III tranche is allowed after five years from the issue date, meaning from June 16, 2026, onwards.
How is the redemption price calculated for premature redemption of SGBs?
The redemption price is based on the simple average of the closing price of gold of 999 purity for the three business days immediately preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA).
Who can avail premature redemption of the Sovereign Gold Bond 2020-21 Series-III tranche?
Bondholders of the SGB 2020-21 Series-III issued on June 16, 2020, are eligible for premature redemption starting June 16, 2026.
Does premature redemption affect the interest payable on Sovereign Gold Bonds?
Premature redemption is permitted on interest payment dates after five years from the bond issue date. Details on interest adjustments at redemption are not specified in the source and should be checked from the official notification.
Where can investors find the official redemption price for premature redemption?
The redemption price is published by RBI based on gold prices from the India Bullion and Jewellers Association Ltd. Official RBI notifications and press releases provide the confirmed redemption price.
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Source note: This article is based on RBI press release dated June 15, 2026. Readers should refer to the official source for detailed rules, eligibility, deadlines or compliance requirements. View original source.
