The RBI notified the redemption price for premature redemption of Sovereign Gold Bond (SGB) 2019–20 Series V on October 15, 2026, as permitted under government rules after the fifth year. The price is based on the simple average of domestic gold prices over a specified period.
Premature Redemption of SGB Series V
On October 15, 2026, the Reserve Bank of India facilitated the premature redemption of Sovereign Gold Bond (SGB) 2019–20 Series V, issued on October 15, 2019. As per Government of India Notification F.No. 4(7)-B(W&M)/2019 dated September 30, 2019, premature redemption is permitted after the fifth year from the issue date, on interest payment dates.
The redemption price is calculated based on the simple average of the domestic gold price over the preceding three business days, as specified in the SGB Scheme. This mechanism ensures fair value alignment with prevailing market rates while discouraging speculative exits.
Investor and Compliance Implications
This redemption window is available to retail and institutional investors holding physical or demat SGBs. Banks and depositary institutions must process redemption requests in accordance with RBI and Securities and Exchange Board of India (SEBI) guidelines. Tax considerations under the Income-tax Act, 1961—particularly capital gains upon premature encashment—must be factored by investors.
