Premature redemption under Sovereign Gold Bond (SGB) Scheme 2018-19 Series VI is permitted starting August 12, 2026. As per the Government of India notification dated October 8, 2018, and RBI's latest communication, bondholders can opt for premature redemption after five years from issue. The redemption price is calculated based on the simple average closing gold price over three business days prior to the redemption date, set at ₹15,102 per unit for this tranche.
Quick Summary
- Premature redemption under Sovereign Gold Bond 2018-19 Series VI allowed from August 12, 2026.
- Redemption price fixed at ₹15,102 per unit based on average gold prices on August 7, 10, and 11, 2026.
- Applies to investors holding the SGB Series VI issued on February 12, 2019.
- Premature redemption permitted only after fifth year on interest payment dates.
What RBI announced
The Reserve Bank of India (RBI) communicated the redemption price applicable for premature redemption under the Sovereign Gold Bond (SGB) Scheme 2018-19 Series VI. This tranche was issued on February 12, 2019. The RBI referred to the Government of India notification F.No.4(22)-B(W&M)/2018 dated October 8, 2018, which permits premature redemption after five years from the date of issue on interest payment dates.
Key decision in simple terms
Investors holding SGB 2018-19 Series VI can redeem their bonds early starting August 12, 2026. The price at which redemption occurs is the average closing price of 999 purity gold over the previous three business days, as published by the India Bullion and Jewellers Association Ltd (IBJA). For this redemption date, that price is ₹15,102 per unit.
Who is affected
Bondholders of the SGB 2018-19 Series VI tranche, which was issued on February 12, 2019, are directly impacted. These investors may opt for premature redemption from August 12, 2026, on the interest payment date. Other series or tranches of SGB are not affected by this communication.
Impact on banks, NBFCs, customers or borrowers
Banks and NBFCs that sell or manage SGBs must process premature redemptions by calculating settlements at ₹15,102 per unit for this tranche on the stipulated date. Customers who hold these bonds can request redemption on August 12, 2026. Borrowers and related lending entities are not impacted directly as these bonds represent investments, not credit facilities.
Key dates, numbers or rules
The SGB 2018-19 Series VI was issued on February 12, 2019. Premature redemption is permitted only after five years, making the first eligible date August 12, 2026, which coincides with the interest payment date. The redemption price is ₹15,102 per unit, calculated as the simple average of closing prices of 999 purity gold on August 7, 10, and 11, 2026, as published by IBJA.
Frequently Asked Questions
What is premature redemption under Sovereign Gold Bond Scheme?
Premature redemption allows investors to encash their Sovereign Gold Bonds after holding them for at least five years, on the date interest is payable, before the original maturity date.
When is premature redemption allowed for SGB 2018-19 Series VI?
Premature redemption for SGB 2018-19 Series VI is allowed from August 12, 2026, the fifth anniversary of the issue date and an interest payment date.
How is the redemption price calculated for premature redemption?
The redemption price is the simple average of the closing price of 999 purity gold for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd.
What is the redemption price for premature redemption due on August 12, 2026?
The redemption price for premature redemption due on August 12, 2026, is ₹15,102 per unit of SGB.
Are all Sovereign Gold Bond series eligible for premature redemption on the same date?
No, premature redemption eligibility depends on the issue date of each series. Each series becomes eligible for premature redemption five years after its issue date on an interest payment date.
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Source note: This article is based on RBI press release dated August 11, 2026. Readers should refer to the official source for detailed rules, eligibility, deadlines or compliance requirements. View original source.
