SGB Premature Redemption: Sovereign Gold Bond investors holding the 2020-21 Series VI tranche have an early exit option on September 8, 2026. The Reserve Bank of India has fixed the premature redemption price at Rs 15,384 for each SGB unit. One SGB unit represents one gram of gold.
This tranche was issued on September 8, 2020. SGBs normally come with an eight-year maturity period. However, investors can redeem them early after five years, but the exit has to happen on an interest payment date. RBI’s rules confirm that premature redemption is allowed after the fifth year on such interest dates.
Gold Rate Today, September 7, 2026: Check MCX Gold, Silver Prices and City-Wise Rates
SGB 2020-21 Series VI Redemption Date and Price
For this particular tranche, September 8, 2026, is the announced premature redemption date. The redemption value isn’t taken from the old issue price. Instead, it’s linked to the market price of gold.
RBI uses the simple average of the closing price of 999-purity gold for the three business days before the redemption date. The prices are published by the India Bullion and Jewellers Association Ltd (IBJA). For the September 8 redemption, the relevant dates are September 3, September 4 and September 7, 2026. The resulting price has been fixed at Rs 15,384 per unit.
Under the SGB rules:
- SGB tranche: 2020-21 Series VI
- Issue date: September 8, 2020
- Premature redemption date: September 8, 2026
- Redemption price: Rs 15,384 per unit
- Gold purity: 999 purity
- Reference dates: September 3, 4 and 7, 2026
- Price benchmark: Simple average of IBJA closing gold prices
Bihar vs Japan Road Deaths: The Shocking Numbers Behind India’s Road Safety Crisis
How much can Investors Receive?
Because one SGB unit equals one gram of gold, someone holding 10 units would get Rs 1,53,840 as the principal redemption amount at the announced rate.
The original online issue price for this series was Rs 5,067 per gram. At Rs 15,384 today, the gold-linked value is about 204% higher than the original issue price. An investment of Rs 1 lakh at the original online issue price would therefore be worth around Rs 3.04 lakh based on the redemption price, before considering the interest received separately.
SGB investors also receive 2.5% annual interest on the original investment amount. The interest is generally paid every six months, so this payment is separate from the redemption amount based on gold prices.
Important Tax Change for SGB Investors
There is also a major tax point investors need to keep in mind in 2026. Under the new rules effective from April 1, 2026, the capital gains exemption is limited to individuals who bought the SGB at the original issue and keep it until its eight-year maturity. Premature redemption is no longer covered by the earlier exemption. SGBs bought through the secondary market also don’t get the same tax-free treatment.
