✎ SGB premature redemption price is ₹15,328 per unit on September 11, 2026, based on IBJA's 3-day 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 Sovereign Gold Bond (SGB) 2019-20 Series X, due on September 11, 2026, at ₹15,328 per unit. This redemption price is calculated as the simple average of the closing prices of 999 purity gold over the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA). The premature redemption is permitted after the fifth year from the issue date, which was March 11, 2020, in line with the Government of India’s notification dated September 30, 2019. This mechanism ensures transparency and aligns with market prices, providing investors with a fair valuation at the time of redemption.
For aspirants preparing for Banking, SSC, and RBI Grade B exams, this development is relevant as it highlights the operational aspects of the SGB scheme, a key component of the government’s gold monetization strategy. Questions on SGBs may appear in sections covering monetary policy, financial instruments, or government schemes in these exams. Understanding the redemption process, pricing mechanism, and eligibility criteria for premature redemption can help candidates answer questions related to gold bonds, sovereign guarantees, and RBI’s role in financial markets. This also underscores the importance of staying updated with RBI press releases, a common source for current-affairs questions in competitive exams.
Source: RBI
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