Premature Redemption Schedule for Sovereign Gold Bonds
Investors holding Sovereign Gold Bonds under the 2019-20 Series III tranche will have the opportunity for premature redemption. According to the guidelines established by the Government of India notification issued in May 2019, early encashment of these gold bonds is permitted after the completion of five years from the initial issuance date. This provision applies specifically on dates when interest payments are due, making the upcoming redemption effective on August 14, 2026.
Calculation and Valuation Methodology
The monetary value for this early exit is determined through a specific valuation framework tied to market rates. The final payout is derived from the simple average of the closing rates for 999 purity gold over the preceding three business days. These benchmark figures are officially published by the India Bullion and Jewellers Association Limited.
- Valuation basis: Simple average of closing gold prices
- Purity standard: 999 purity gold
- Reference duration: Previous three business days
Final Payout Determined for Investors
For the upcoming redemption date scheduled for August 14, 2026, the central bank has fixed the final payout at ₹15,310 per unit of the gold bond. This figure was calculated using the closing rates recorded on August 11, August 12, and August 13, 2026. This option provides participating holders an official pathway to exit their investment holdings prior to the final maturity timeline.
Primary source: This independent news summary is based on official information from Reserve Bank of India. Read the original document for complete details.