RBI fixes price for premature redemption of Sovereign Gold Bonds

Mumbai: The RBI on Friday announced a price of Rs 6,079 per unit for the premature redemption of sovereign gold bonds issued by the government.

The price is based on the simple average of closing gold price 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 October 30, 2023 shall be Rs 6,079 (Rupees Six thousand seventy-nine only) per unit of SGB based on the simple average of closing gold price for three business days i.e., October 25-27, 2023,” the RBI said.

Under the Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after the fifth year from the date of issue of such Gold Bond on the date on which interest is payable. These bonds were issued October 30, 2017.

Accordingly, the next due date of premature redemption of the above tranche is October 30, 2023, the RBI statement said.