Premature redemption under Sovereign Gold Bond (SGB) 2020-21 Series-IV is scheduled for July 14, 2026, as per government notification. Investors holding this tranche of the SGB can redeem their bonds after completing five years from the issue date. The redemption price is determined based on the average closing price of gold over the three business days preceding the redemption date. The Reserve Bank of India has specified the redemption price for the upcoming premature redemption at ₹14,307 per unit, reflecting the current market valuation of gold.
Quick Summary
- Premature redemption under Sovereign Gold Bond 2020-21 Series-IV allowed from July 14, 2026
- Redemption price fixed at ₹14,307 per unit based on average gold price of preceding three business days
- Applies to investors holding the SGB tranche issued on July 14, 2020
- Redemption permitted after completion of five years from original issue date
What RBI announced
The Government of India notification dated April 13, 2020, outlines the framework for premature redemption under the Sovereign Gold Bond Scheme. In line with this, premature redemption for SGB 2020-21 Series-IV, issued on July 14, 2020, is permissible after five years from the issue date on the date interest is payable.
The Reserve Bank of India communicated that the next available date for premature redemption of this tranche is July 14, 2026.
Key decision in simple terms
Premature redemption allows investors to exit their Sovereign Gold Bonds before maturity, but only after five years since the issue date. The redemption price is calculated using the average closing price of gold of 999 purity for the three business days prior to the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA).
For the upcoming redemption date of July 14, 2026, the redemption price has been fixed at ₹14,307 per bond unit using the average gold prices from July 9, July 10, and July 13, 2026.
Who is affected
This update pertains to investors who subscribed to the Sovereign Gold Bond 2020-21 Series-IV issued on July 14, 2020. These investors have the option to redeem their bonds prematurely from July 14, 2026, if they choose to exit before maturity.
Impact on banks, NBFCs, customers or borrowers
While banks and non-banking financial companies (NBFCs) do not directly issue these bonds, they serve as channels for investment and redemption. This announcement means banks and other intermediaries should be prepared to facilitate premature redemptions at the price set on July 14, 2026.
For customers, this provides liquidity options on the Government-backed gold investment instrument after five years, supporting portfolio flexibility without the need to hold until full maturity.
Key dates, numbers or rules
The key redemption date is July 14, 2026, marking five years from the original issue date of July 14, 2020. The redemption price is ₹14,307 per unit based on the simple average of closing gold prices for the three preceding business days: July 9, July 10, and July 13, 2026.
All figures and rules come from the Government of India notification F.No.4(4)-B(W&M)/2020 dated April 13, 2020 and the RBI press release reference 2026-2027/661 from July 13, 2026.
What readers should watch next
Investors interested in premature redemption options should monitor RBI and authorized intermediary announcements closely around the redemption date for any procedural updates. Redemption price announcements linked to subsequent redemption dates should also be noted for future redemptions after the current date.
Additionally, any changes in the gold price calculation method or new government notifications affecting SGB scheme terms would be relevant to watch.
Frequently Asked Questions
What is the earliest date for premature redemption of Sovereign Gold Bond 2020-21 Series-IV?
Premature redemption is allowed after five years from the issue date; for the 2020-21 Series-IV tranche issued on July 14, 2020, this date is July 14, 2026.
How is the redemption price for premature redemption of SGB calculated?
The redemption price is calculated based on the simple average of the closing price of gold of 999 purity for the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA).
What is the redemption price for the SGB 2020-21 Series-IV premature redemption due on July 14, 2026?
The redemption price has been fixed at ₹14,307 per unit of the Sovereign Gold Bond based on the simple average of gold prices on July 9, July 10, and July 13, 2026.
Can investors redeem the Sovereign Gold Bonds before five years from the issue date?
No, premature redemption is permitted only after completion of five years from the date of issue as per the Government of India notification.
Who publishes the gold prices used for calculating the redemption price?
The India Bullion and Jewellers Association Ltd (IBJA) publishes the gold closing prices of 999 purity used for redemption price calculation.
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Source note: This article is based on the RBI press release dated July 13, 2026. Readers should refer to the official source for detailed rules, eligibility, deadlines or compliance requirements. View original source.
