SGB 2019-20 Series V: early redemption price set at ₹14,725 a gram
Holders of Sovereign Gold Bond 2019-20 Series V who chose to cash out early on October 15, 2026 receive ₹14,725 for each unit (one gram of gold).
Official title: Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2019-20 Series V due on October 15, 2026 · Press Release 2026-2027/1329
What happened
Sovereign Gold Bonds (SGBs) are government bonds whose value tracks the price of gold; each unit equals one gram. They run for eight years, but holders may redeem early after the fifth year, only on a date when interest is due. SGB 2019-20 Series V was issued on October 15, 2019, so October 15, 2026 is its next early-redemption date.
The price is the simple average of the closing price of 999-purity gold, as published by the India Bullion and Jewellers Association (IBJA), over the three business days before redemption: October 12, 13 and 14, 2026. That works out to ₹14,725 per unit. So a holder redeeming 10 units receives ₹1,47,250, plus the half-yearly interest due that day.
The release does not state the original issue price of this series, and we could not open the linked government notification, so we can't give the exact gain here. Your SGB holding statement or certificate shows the price you paid per gram; the difference between that and ₹14,725 is your gain per unit, on top of the interest received over the years.
What it means for you
If you hold this series and want to exit early, ask the bank, post office, agent or depository participant through which you hold the bond to submit your redemption request before the date (each has its own cut-off). Money is credited to your linked bank account. If you didn't apply this time, the next chance comes on a later interest date, or you can hold to maturity or sell on a stock exchange if held in demat form.
What it means for businesses
Little direct effect on businesses. Banks, post offices and agents handling SGBs process redemption requests at this price, and the payout comes from the government's account managed by RBI.
Links in this release, explained
- Government of India notification F.No. 4(7)-B(W&M)/2019, September 30, 2019
The Finance Ministry's notification that launched this SGB series and set its terms, including who could invest, tenor, interest and the early redemption rules. We could not open it (the RBI site blocked automated access), so we can't quote its figures; open it if you want the original terms of your bond.
rbidocs.rbi.org.in/rdocs/content/pdfs/SGBN30092019.pdf
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.