The RBI announced the redemption price for premature redemption of the Sovereign Gold Bond 2021-22 Series V, with a due date on August 17, 2026. The redemption price will be determined based on the simple average of closing prices.
Premature Redemption Price for Sovereign Gold Bond 2021-22 Series V
The Reserve Bank of India (RBI) has set the framework for the premature redemption of the Sovereign Gold Bond (SGB) 2021-22 Series V issued on August 17, 2021, effective from August 17, 2026. Per the government notification (F.No. 4(5)-B(W&M)/2021 dated May 12, 2021), these bonds can be redeemed after five years from the date of issuance on the payment date of interest.
The redemption price for the bonds will be based on the simple average of closing prices of gold over the last three business days preceding the date of redemption. This approach aims to provide a transparent valuation mechanism for investors looking to exit their investments prior to maturity.
Practitioners advising clients on investments in Sovereign Gold Bonds should be aware of these provisions to effectively guide clients through redemption processes and the associated financial implications.
Citations
- Sovereign Gold Bond Scheme Notification (2021)
- RBI Press Release (2026)
