✎ Premature redemption of SGB 2019-20 Series VI is allowed after 5 years from issue date (Oct 30, 2019) on Oct 30, 2026, with redemption price based on 3-day IBJA gold price average.
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 VI, which is due on October 30, 2026. According to the RBI’s press release dated October 29, 2026, 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 three preceding business days, as published by the India Bullion and Jewellers Association Ltd (IBJA). The redemption price for this tranche has been fixed at ₹14,213 per unit, based on the average of the closing prices on October 27, 28, and 29, 2026. This mechanism ensures transparency and aligns with market-linked pricing for gold bonds.
This development holds significance for aspirants preparing for competitive exams like Bank PO, IBPS, SBI, RBI Grade B, and SSC, particularly in the Polity & Governance section. Understanding the SGB scheme, its redemption policies, and the role of RBI in regulating such financial instruments is crucial for banking and financial awareness segments of these exams. The RBI’s regulatory framework for SGBs reflects broader themes of monetary policy, financial inclusion, and government-backed investment schemes, which are often tested in RBI Grade B and SSC examinations. Aspirants should note the importance of RBI’s communication in shaping financial policies and its impact on investors, including the timing and pricing mechanisms for premature redemptions.
Source: RBI
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