The Reserve Bank of India has notified that the premature redemption date for Sovereign Gold Bond (SGB) 2020-21 Series VII is October 19, 2026, due to October 20 being a holiday. Redemption is permitted after the fifth year, on interest payment dates, as per government notification.
Premature Redemption Date Fixed for SGB Series
The Reserve Bank of India has announced the premature redemption date for Sovereign Gold Bond (SGB) 2020-21 Series VII as October 19, 2026, since October 20, 2026, the actual interest payment date, falls on a holiday. This action is in accordance with the Government of India’s notification dated October 9, 2020 (F.No. 4(4)-B(W&M)/2020) issued under the SGB Scheme.
As per the Scheme, premature redemption of SGBs is permitted only after completion of the fifth year from the date of issue, and only on such dates when interest is payable. The Series VII bonds were originally issued on October 20, 2020, making October 20, 2026, the first eligible date for early redemption, adjusted to the preceding working day.
Investors in this tranche may initiate redemption procedures through their respective depositary institutions. The redemption price will be based on the simple average of the closing price of 999 purity gold for the previous three business days, as published by the India Bullion and Jewellers Association Limited (IBJA). This provides clarity for financial planning and liquidity management for retail and institutional SGB holders.
