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Gold bond redemption today: SGB 2020-21 Series I eligible for premature exit; Check your returns

image Sangeeta Ojha
By Sangeeta Ojha

3 min read | Updated on October 28, 2026, 08:46 IST

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SUMMARY

RBI has fixed the premature redemption price of SGB 2020-21 Series I at ₹14,159 per unit for October 28, 2026. Check the issue price and returns.

SGB 2020-21 Series I eligible for premature exit

In its announcement on premature redemption, the RBI said that the redemption price for SGB 2020-21 Series I, due on October 28, 2026, has been fixed at ₹14,159 per unit. Representational image/AI generated.

The Reserve Bank of India (RBI) has fixed the premature redemption price of Sovereign Gold Bond (SGB) 2020-21 Series I at ₹14,159 per unit for October 28, 2026.

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The tranche was originally issued at ₹4,639 per gram of gold, with a discounted issue price of ₹4,589 per gram for investors who applied online and paid digitally.

Eligible investors whose redemption requests were submitted within the applicable deadline can receive the announced redemption value on the scheduled date, subject to the prescribed process.

SGB 2020-21 Series I: What is the premature redemption price?

In its announcement on premature redemption, the RBI said that the redemption price for SGB 2020-21 Series I, due on October 28, 2026, has been fixed at ₹14,159 per unit.

The RBI said the gold price is based on the simple average of the closing price of gold of 999 purity over the three preceding business days, as published by the India Bullion and Jewellers Association Ltd (IBJA).

The three reference dates were October 23, October 26 and October 27, 2026.

The RBI's announcement states: “the redemption price for premature redemption due on October 28, 2026, shall be ₹14,159/- ... per unit of SGB”.

What was the original issue price of SGB 2020-21 Series I?

According to the Government of India's press release dated April 17, 2020, the subscription period for SGB 2020-21 Series I ran from April 20 to April 24, 2020, with settlement scheduled for April 28, 2020.

The government fixed the issue price at ₹4,639 per gram. It also offered a discount of ₹50 per gram to investors who applied online and made the payment digitally, bringing their issue price to ₹4,589 per gram.

The press release stated: “The issue price of the Bond during the subscription period shall be ₹4,639 ... per gram”.

How much has the SGB price increased?

Compared with the regular issue price of ₹4,639, the premature redemption price of ₹14,159 represents an increase of ₹9,520 per unit.

For investors who purchased the bonds at the discounted price of ₹4,589, the increase is ₹9,570 per unit.

Can investors redeem SGBs prematurely?

Under the Sovereign Gold Bond Scheme, premature redemption is permitted after the fifth year from the date of issue, on an interest payment date.

As SGB 2020-21 Series I was issued on April 28, 2020, October 28, 2026, is an eligible premature redemption date.

Investors should check the SGB redemption process and applicable deadlines with their bank, post office, stockbroker or other relevant intermediary, depending on how they hold the bonds.
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Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Investors should do their own research or consult a registered financial advisor before making investment decisions.

About The Author

image Sangeeta Ojha
Sangeeta Ojha is a business and finance journalist with experience across leading media platforms like Mint and India Today. She has built a reputation for covering a wide range of personal finance topics, including income tax, mutual funds, insurance, savings and investing.

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