Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Reserve Bank of India (RBI) has announced the redemption price for the premature redemption of the Sovereign Gold Bond (SGB) 2019-20 Series V, which is due on October 15, 2026. As per the GOI notification dated September 30, 2019, premature redemption is permitted after the fifth year from the issue date, with the redemption price calculated as the simple average of the closing price of 999 purity gold over the previous three business days, as published by the India Bullion and Jewellers Association Ltd (IBJA). For this tranche, the redemption price has been fixed at ₹14,725 per unit based on the average closing prices of October 12, 13, and 14, 2026. This mechanism ensures transparency and aligns with market-linked pricing for SGBs.
This topic is relevant for Banking, SSC, and RBI Grade B aspirants as it tests their understanding of government schemes, monetary policies, and financial instruments. Questions may appear in exams regarding the SGB scheme, its features, redemption process, and the role of the RBI in regulating such instruments. Additionally, awareness of such financial schemes is crucial for candidates aiming for roles in banking and financial services, where knowledge of government-backed investment options is often assessed.
Source: RBI
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