SGB 2019-20 Early Exit: Is ₹15,275 Worth It?

RBI has set the early redemption price for Sovereign Gold Bond 2019-20 Series VII at ₹15,275 per unit for June 10, 2026. If you hold this SGB and want to exit early, here is what you get and whether it makes sense.

Here's what happened: RBI fixed ₹15,275 as the premature redemption price for SGB 2019-20 Series VII, valid on June 10, 2026.. The price is calculated as the simple average of 999-purity gold closing prices over the previous 3 business days, as published by IBJA.. SGBs allow early exit after the 5th year on designated RBI coupon payment dates — this is one such window..

What you should do: Check your SGB certificate or Demat account to confirm if you hold the 2019-20 Series VII tranche before June 10.. Compare ₹15,275 against current live gold prices and your original purchase price to decide if redeeming now or holding to maturity (8 years) makes better financial sense.. If you want to redeem, contact your broker, bank, or post office where you bought the SGB at least 10 days before the redemption date to complete the process on time..

Holding SGBs to full 8-year maturity gives you one big bonus: the capital gain on redemption is completely tax-free. Early exit before maturity is taxed as normal capital gains — so crunch the tax cost before you exit.