What changed
RBI specified the premature redemption price for SGB 2020-21 Series-IX due on July 4, 2026. The price is ₹14,366 per unit, calculated using the simple average of IBJA gold prices for the three preceding business days (July 1-3, 2026).
What it means for you
Investors holding this SGB tranche can redeem at ₹14,366 per unit, reflecting current gold market levels. Banks and intermediaries must process premature redemptions at this fixed price on the due date. No flexibility in pricing; adherence to the IBJA-based formula is mandatory.
What you must do
- Update systems to reflect the premature redemption price of ₹14,366 per unit for SGB 2020-21 Series-IX.
- Process investor redemption requests on July 4, 2026 (or next working day) at the specified price.
- Communicate the redemption price and procedure to eligible SGB holders promptly.
- Ensure compliance with GOI notification F.No.4(4)-B(W&M)/2020 for premature redemption after five years.
Who it affects
SGB 2020-21 Series-IX investors, Banks and authorized SGB intermediaries
What is the premature redemption price for SGB 2020-21 Series-IX?
₹14,366 per unit, based on the simple average of IBJA 999 gold closing prices for July 1, 2, and 3, 2026.
When is the premature redemption date?
July 4, 2026, but since it's a holiday, the effective date is adjusted; the price is fixed as per the three preceding business days.
How is the redemption price calculated?
Simple average of closing gold prices (999 purity) from IBJA for the three business days immediately before the redemption date.