Investment News · 29 October 2026 · 3 min read
In short: The RBI fixed the early (premature) redemption price of Sovereign Gold Bond (SGB) 2020-21 Series I at ₹14,159 per gram for redemption on 28 October 2026. Investors who bought online at ₹4,589 gain about ₹9,570 a gram (208.54%), before counting the 2.5% yearly interest.
The numbers
| Item | Online buyers | Offline buyers |
|---|---|---|
| Issue price (April 2020) | ₹4,589 per gram | ₹4,639 per gram |
| Redemption price (28 Oct 2026) | ₹14,159 | ₹14,159 |
| Gain per gram | ₹9,570 | ₹9,520 |
| Gain in % | About 208.5% | About 205.2% |
| Interest | 2.5% a year on the issue amount, paid every six months | Same |
The price is the simple average of the closing price of 999-purity gold, published by the India Bullion and Jewellers Association (IBJA), on 23, 26 and 27 October 2026. For comparison, the same bond’s early redemption price in April 2026 was ₹15,124, so this window pays about ₹965 a gram less because gold prices have eased from their highs.
What it means for you
- Early exit is optional: SGBs can be redeemed early after five years, only on interest-payment dates. The bond matures fully after eight years, in April 2028.
- Tax matters: As reported by Outlook Money and Angel One, under rules in force from 1 April 2026 the capital-gains tax exemption is for original subscribers who hold until maturity. Gains on early redemption may be taxed. The 2.5% interest is taxed every year at your slab rate.
- If you hold: You keep earning 2.5% interest, and your return will depend on the gold price in April 2028.
- Check today’s prices in our gold and silver rate update.
What to watch next
The next early redemption window for this series is expected around the next interest date in April 2027. Apply through your bank, post office, broker or RBI Retail Direct, within the deadline they set. Use our money tools to plan what to do with the proceeds.
Sources
- Outlook Money: SGB 2020-21 Series I redemption price ₹14,159 (28 Oct 2026)
- Angel One: SGB 2020-21 Series I delivers 208.54% return
- Angel One: April 2026 redemption price ₹15,124
- RBI press releases
This is a news summary for education, not investment advice. Figures are as reported on or before 29 October 2026; check official sources before making decisions.