Your SGB is redeemed at the average of IBJA's 999 gold closing price over the three business days before the redemption date. Early redemption is allowed after the fifth year, on an interest date. RBI announces the exact price per unit for each tranche in a press release.
How the redemption price is set
RBI's notices state that the redemption price of SGB is based on the simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association (IBJA). One unit of SGB is one gram of gold, so the price is per gram.
That is the same IBJA 999 rate this site shows as today's 24K gold rate, which makes it easy to keep an eye on what your bonds are worth.
When you can redeem early
Under the scheme's notifications, premature redemption may be permitted after the fifth year from the date of issue, on the date on which interest is payable. Interest is paid twice a year, so there are two windows a year for each tranche. RBI announces each window and its price shortly before the date.
A worked example from RBI
For SGB 2019-20 Series-II, issued on 16 July 2019, RBI set the premature redemption date as 16 January 2026. It fixed the price at ₹14,092 per unit, the simple average of IBJA's closing 999 gold price on 12, 13 and 14 January 2026. Someone holding 10 units would have received ₹1,40,920 for them.
What your units are worth today
This values your units at today's IBJA 999 rate. Add your issue price and your series' interest rate from your certificate to see the interest you earn each year.
| Value at today's IBJA 999 rate | ₹1,41,630 |
|---|
A guide only. RBI's redemption price is the average IBJA 999 closing rate of the three business days before the redemption date, announced by RBI for each tranche.
How to apply
Early redemption requests go through whoever holds your bond: the bank, post office or agent you bought it from, or your depository participant if you hold it in demat form. Ask them for the cut-off date before the redemption window, because requests usually have to be in ahead of the date. Bonds held in demat can also be sold on the stock exchange at the market price.
For other ways people hold gold and how they compare, see our guides on digital gold and gold coins and bars. We do not give investment advice.
Sources
- RBI press release, premature redemption price of SGB 2019-20 Series-II due 16 January 2026 (rbi.org.in)
- RBI press releases, where each tranche's redemption price is announced (rbi.org.in)
Questions people ask
How is the Sovereign Gold Bond 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. RBI announces the price for each tranche.
Can I redeem a Sovereign Gold Bond before maturity?
Yes, after the fifth year from the date of issue, on a date when interest is payable. RBI's notices for each tranche give the next premature redemption date.
What is one unit of SGB?
One unit is one gram of gold. The redemption price is announced per unit, so your payout is that price times the units you hold.
Where do I find the redemption price for my series?
RBI publishes a press release for each premature redemption, naming the series, the date and the price per unit.