SGB 2020-21 Series VII: RBI sets ₹14,614 per unit for early redemption
Why in the news
The Reserve Bank of India (RBI), in a press release dated 16 October 2026, announced the price at which investors can prematurely redeem the Sovereign Gold Bond (SGB) 2020-21 Series VII. The redemption is due on 19 October 2026.
Key facts
- Redemption price: ₹14,614 per unit.
- Due date: 19 October 2026; the date was advanced by a day because 20 October 2026 is a holiday.
- Price basis: simple average of the closing price of gold of 999 purity for the three business days before redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).
- Days used: 14, 15 and 16 October 2026.
- Rule: under the Government of India notification of 9 October 2020, premature redemption is allowed after the fifth year from the issue date, on dates when interest is payable.
| Item | Detail |
|---|---|
| Tranche | SGB 2020-21 Series VII |
| Issue date | 20 October 2020 |
| Premature redemption date | 19 October 2026 |
| Price per unit | ₹14,614 |
| Price reference | IBJA, 999 purity gold |
About Sovereign Gold Bonds
Sovereign Gold Bonds are issued in tranches, and RBI announces the redemption price for each premature or final redemption. The price is linked to the market price of gold, and early exit is permitted only after the fifth year from issue, on dates when interest falls due.
Exam angle
- RBI announces SGB redemption prices; the rules come from a Government of India notification.
- Benchmark for pricing: IBJA closing price of 999 purity gold, averaged over three business days.
- Premature redemption window opens after the fifth year from issue.