RBI sets ₹14,614 gold bond redemption for October 19
India's central bank confirmed the price for the 2020-21 Series VII Sovereign Gold Bonds, calculated from average gold rates over three business days.
Redemption Price Fixed
The RBI has fixed the premature redemption price for these bonds at ₹14,614 (Rupees Fourteen Thousand Six Hundred and Fourteen) per unit. This valuation is based on a specific methodology: a simple average of the closing prices of 999 purity gold. The India Bullion and Jewellers Association Ltd (IBJA) publishes these official gold prices. The average was calculated using the closing rates from October 14, October 15, and October 16, 2026.
Scheme Terms Detailed
The Sovereign Gold Bond Scheme permits premature redemption after the fifth year from the bond’s issue date. This early redemption must coincide with an interest payment date. These terms are outlined in a Government of India (GOI) notification, F.No. 4(4)-B(W&M)/2020, dated October 09, 2020.
The SGB scheme provides investors with an alternative to holding physical gold, with the RBI managing its issuance and redemption.
Investor Certainty for SGB Holders
This announcement offers clarity for investors in the SGB 2020–21 Series VII, providing a firm exit value. The fixed price of ₹14,614 per unit allows bondholders to plan their capital reallocation or realise gains with certainty. Such mechanisms enhance the liquidity of long-term gold bond investments.
The transparent pricing structure, directly linked to IBJA gold rates, reinforces investor confidence in the scheme's integrity and value proposition.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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