The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) Series III of 2019-20, which is due on August 14, 2024.

The redemption price has been set at ₹7,000 per unit.

This represents a profit of ₹3,501 per unit and a 100.06% increase above the issue price of ₹3,499 per unit.

The redemption price is based on the simple average of the closing gold price of 999 purity over the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).
For this premature redemption due on August 14, 2024, the price has been calculated based on the closing gold prices from August 9, August 12, and August 13, 2024.

The RBI allows premature redemption of SGBs after the fifth year from the date of issue, in line with the Government of India Notification dated May 30, 2019. Therefore, August 14, 2024, is the due date for this redemption.

Ways to prematurely withdraw SGBs

For premature redemption, investors must approach the concerned bank, SHCIL offices, post office, or agent thirty days before the coupon payment date.

The request must be submitted at least one day before the coupon payment date to be entertained by the concerned authorities.

The proceeds are then credited to the customer’s bank account provided at the time of bond application.