SGB 2020-21 Series VII: early redemption price set at ₹14,614 a gram
Holders of Sovereign Gold Bond 2020-21 Series VII who redeem early on October 19, 2026 (moved from the October 20 holiday) receive ₹14,614 for each unit, or one gram of gold.
Official title: Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption of SGB 2020-21 Series VII due on October 19, 2026 (October 20, 2026, being a holiday) · Press Release 2026-2027/1344
What happened
Sovereign Gold Bonds (SGBs) are government bonds linked to the gold price; each unit equals one gram. They run for eight years, but can be redeemed early after the fifth year on an interest payment date. SGB 2020-21 Series VII was issued on October 20, 2020. Its early-redemption date this year falls on October 20, 2026, a holiday, so redemption happens on October 19, 2026.
The price is the simple average of the closing price of 999-purity gold published by the India Bullion and Jewellers Association (IBJA) for October 14, 15 and 16, 2026: ₹14,614 per unit. A holder redeeming 10 units gets ₹1,46,140, plus the interest due. This is ₹111 a gram lower than the ₹14,725 set for another series a few days earlier, reflecting a slight dip in gold prices.
The release does not give this series' issue price, and we could not open the linked notification, so we can't state the exact gain. Check your SGB statement for the price you paid per gram and compare it with ₹14,614.
What it means for you
If you hold this series and want to cash out, your request must go through the bank, post office, agent or depository participant where you hold it, before their cut-off for this date. Proceeds go to your linked bank account. Otherwise you can wait for a later interest date, hold to maturity, or sell on an exchange if the bond is in demat form.
What it means for businesses
No real effect on businesses beyond the banks, post offices and agents that process redemption requests.
Links in this release, explained
- Government of India notification F.No. 4(4)-B(W&M)/2020, October 9, 2020
The Finance Ministry's notification that launched this SGB series and set its terms, such as eligibility, tenor, interest and early redemption. We could not open it (the RBI site blocked automated access), so we can't quote its figures; open it to check the original terms of your bond.
rbidocs.rbi.org.in/rdocs/content/pdfs/SGB09102020_1.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.