The Premature redemption of Sovereign Gold Bond (SGB) Scheme – Redemption Price for premature redemption of SGB 2018-19 Series-II has been announced by the Reserve Bank of India. Accordingly, the central bank has said, the due date of premature redemption of the above tranche is today (April 23, 2026).

“The premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranche shall be on April 23, 2026,” RBI has said.

Further, the redemption price of SGB shall be based on simple average of 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). Accordingly, the redemption price for premature redemption due on April 23, 2026, shall be ₹15,219/- (Rupees Fifteen Thousand Two Hundred and Nineteen Only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., April 20, April 21, and April 22, 2026, said the RBI.

What is Sovereign Gold Bond Scheme?

Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

392% Returns On SGB

The SGB was originally issued at a price of Rs 3,096 (online purchase) per gram before discount, and at Rs 3,046 after Rs 50 discount on online purchase. With 15,219 as the redemption price, investors will see a gain of Rs 12,123 per unit, or a 392 % return. This however excludes the interest. An investment of Rs 1 lakh made at this price of SGB would yield an earning of Rs 4.92 lakh today. This is sans the annual interest of gold bond (2.5%) over principal amount.

How Is Sovereign Gold Bond Scheme being sold?

The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

Who can buy Sovereign Gold Bond Scheme?

The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.