RBI sets premature redemption price for SGB 2020-21 Series XI at ₹14,564

The Reserve Bank of India (RBI) has announced the redemption price for investors seeking **premature redemption** of the **Sovereign Gold Bond (SGB) 2020-21 Series XI**, a move that offers clarity and timely planning for households and savers who use SGBs as a long-term gold investment.

As per the RBI press release (2026-2027/829), the next due date for premature redemption for this tranche is **7 August 2026**. Since **8 August and 9 August 2026** are holidays, the redemption being due on 7 August helps ensure orderly processing aligned with interest payment schedules.

What has been announced Under the Government of India notification **F.No.4(4)-B(W&M)/2020 dated 9 October 2020**, the SGB 2020-21 Series XI was issued on **9 February 2021**. The SGB framework allows **premature redemption after the fifth year from the date of issue**, but only on dates when **interest is payable**.

Accordingly, for this particular tranche, the RBI has confirmed that the next scheduled window for premature redemption falls on:

• **Due date:** **7 August 2026**
• **Note:** **8 August and 9 August 2026 are holidays**

For many investors, this is a useful milestone. It provides a structured exit option without needing to wait until final maturity, while still benefiting from the disciplined design of the scheme.

Redemption price and how it is calculated The RBI stated that the **redemption price** of an SGB is calculated using a transparent, market-linked method. Specifically, it is based on the **simple average of the closing price of gold of 999 purity** for the **previous three business days** before the redemption date, as published by the **India Bullion and Jewellers Association Ltd (IBJA)**.

For the premature redemption due on **7 August 2026**, the RBI has fixed the price at:

• **₹14,564 per unit of SGB**

This price is based on the simple average of IBJA’s closing price of gold (999 purity) for the three business days:

• **4 August 2026**
• **5 August 2026**
• **6 August 2026**

This clear linkage to published benchmark prices helps investors understand how their redemption value is derived and supports confidence in the mechanism.

A steady option for household savers SGBs have been positioned as a convenient way to gain exposure to gold in a **sovereign-backed** format, without the challenges of storage and purity verification that can come with physical gold. The premature redemption facility—available after five years on interest payment dates—adds flexibility for families balancing long-term goals with evolving needs.

For investors holding SGB 2020-21 Series XI, the RBI’s announcement offers practical value: it sets expectations ahead of time and makes it easier to compare options such as holding on, planning liquidity needs, or aligning the redemption with personal financial milestones.

**Why it matters:** Transparent pricing and scheduled redemption windows strengthen trust in the SGB programme, giving Indian savers a predictable, market-linked way to manage gold-linked investments while planning household finances with greater certainty.