Now Reading: RBI sets SGB premature redemption prices at Rs 14,957 and Rs 15,102
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RBI sets SGB premature redemption prices at Rs 14,957 and Rs 15,102
The Reserve Bank of India has fixed premature redemption prices for two Sovereign Gold Bond tranches due in August 2026. For SGB 2019-20 Series IX and SGB 2020-21 Series V, the redemption…
The Story in Brief
The Reserve Bank of India has fixed premature redemption prices for two Sovereign Gold Bond tranches due in August 2026. For SGB 2019-20 Series IX and SGB 2020-21 Series V, the redemption price is Rs 14,957 per unit on August 11, 2026. For SGB 2018-19 Series VI, the price is Rs 15,102 per unit on August 12, 2026.
Both prices are based on the simple average of closing gold prices (999 purity) over the three business days before redemption, as published by the India Bullion and Jewellers Association Ltd. Holders can redeem after five years from the issue date on interest payment dates.
The Indian Opinion
The RBI's routine SGB redemption circulars draw disproportionate alarm, with social media claiming the government is shortchanging investors. The reality is simpler: each tranche's price reflects the previous three days' gold rate, not a conspiracy. Two tranches priced a day apart at different rates merely confirm the market moves daily. Watch for August 12, 2026, if the 2018-19 Series VI holders get their Rs 15,102, the formula holds. What will critics say then?
Sources (2): rbi.org.in, rbi.org.in (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
