SGB 2021-22 Series-I premature redemption due today: Check price and other details

The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2021-22 Series I. As per the RBI guidelines, premature redemption in SGBs is allowed after the fifth year from the bond issuance date on the date on which interest is payable. Accordingly, investors can make premature redemption in this SGB tranche from today i.e. May 25, 2026.

The premature redemption price has been set at ₹15,840 per unit of SGB, based on the simple average of the closing prices of gold for the last three business days, May 20, May 21, and May 22, 2026.

The redemption price is determined based on the simple average of the closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).

The SGB 2021-22 Series I was available for subscription at a price of ₹4,777 for offline or physical subscription, while online investors could subscribe to the issue for ₹4,727 per unit of SGB.

Consequently, SGB investors redeeming this tranche prematurely will be able to make 231% return from their investment.

How can I prematurely redeem my investment in SGBs?

For redeeming the bonds prematurely, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon or interest payment date. The request for premature redemption can only be accepted if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond.