📄 Source: Reserve Bank of India · Press Release prid 63139
Quick answerRBI has fixed the premature redemption price for SGB 2020-21 Series-IV at ₹14,307 per unit, effective July 14, 2026. This price is based on the simple average of gold closing prices from July 9, 10, and 13, 2026, as published by IBJA.
What changed
RBI announced the premature redemption price for SGB 2020-21 Series-IV, which was issued on July 14, 2020. The redemption is allowed after five years from the issue date, and the next due date is July 14, 2026. The price is set at ₹14,307 per unit, calculated using the simple average of gold closing prices for the three business days prior to redemption.
What it means for you
Banks and lenders handling SGB redemptions must apply this fixed price of ₹14,307 per unit for premature redemptions on July 14, 2026. This ensures uniformity and transparency in payouts to investors. The pricing mechanism relies on IBJA's published gold rates, so banks should verify these rates before processing.
The rule, in the simplest words
SGB 2020-21 Series-IV can be cashed in early on July 14, 2026, after holding it for five years.
The cash-in price is ₹14,307 for each SGB unit, set by RBI.
This price is the average of gold rates from July 9, 10, and 13, 2026, from IBJA.
Only this specific SGB series and date are covered in this notice.
Banks must use this exact price for all early redemptions on that day.
How it plays out — a real example
Rajesh, a retail banking officer, receives a customer request to prematurely redeem SGB 2020-21 Series-IV on July 14, 2026. He checks RBI's notice, finds the redemption price of ₹14,307 per unit, and processes the payout accordingly, ensuring the customer gets the correct amount.
What you must do
Update your systems to reflect the redemption price of ₹14,307 per unit for SGB 2020-21 Series-IV effective July 14, 2026.
Inform eligible investors about the premature redemption option and the applicable price.
Cross-check the IBJA gold closing prices for July 9, 10, and 13, 2026, to ensure accuracy.
Process redemption requests on July 14, 2026, using the specified price without deviation.
What is the premature redemption price for SGB 2020-21 Series-IV?
The price is ₹14,307 per unit, based on the simple average of gold closing prices from July 9, 10, and 13, 2026, as per IBJA.
When can investors redeem this SGB series prematurely?
The next premature redemption date is July 14, 2026, which is after five years from the issue date of July 14, 2020.
How is the redemption price calculated?
It is the simple average of the closing price of 999 purity gold for the three business days before the redemption date, as published by IBJA.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI has fixed the premature redemption price for SGB 2020-21 Series-IV at ₹14,307 per unit, effective July 14, 2026. This price is based on the simple average of gold closing prices from July 9, 10, and 13, 2026, as published by IBJA.
Q3. What is the first thing you should do about it?
Update your systems to reflect the redemption price of ₹14,307 per unit for SGB 2020-21 Series-IV effective July 14, 2026.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
Update your systems to reflect the redemption price of ₹14,307 per unit for SGB 2020-21 Series-IV effective July 14, 2026.
📜 Compliance
Inform eligible investors about the premature redemption option and the applicable price.
Cross-check the IBJA gold closing prices for July 9, 10, and 13, 2026, to ensure accuracy.
Process redemption requests on July 14, 2026, using the specified price without deviation.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Banks handling SGB redemptions, Investors holding SGB 2020-21 Series-IV, Lenders offering SGB-linked products), your first concrete step on “SGB 2020-21 Series-IV premature redemption price set at ₹14,307” is: “Update your systems to reflect the redemption price of ₹14,307 per unit for SGB 2020-21 Series-IV effective July 14, 2026.” (RBI issued this 14 Jul 2026).
Circular: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63139 -- SGB 2020-21 Series-IV premature redemption price set at ₹14,307
Issued: 14 Jul 2026
Action required: Update your systems to reflect the redemption price of ₹14,307 per unit for SGB 2020-21 Series-IV effective July 14, 2026.
Action required: Inform eligible investors about the premature redemption option and the applicable price.
Action required: Cross-check the IBJA gold closing prices for July 9, 10, and 13, 2026, to ensure accuracy.
Action required: Process redemption requests on July 14, 2026, using the specified price without deviation.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · 2-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 13 Jul 2026, 18:18 IST
Official RBI source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=63139 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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