SGB 2019-20 Series V Redemption Price Set at ₹14,725: Nearly 4x the Issue Price

In October 2019, Meera, a schoolteacher in Jaipur, bought 10 units of a Sovereign Gold Bond online for ₹37,380. If she cashes them in this week, she will receive ₹1,47,250, plus the interest she has collected along the way. The Reserve Bank of India said on 14 October 2026 that the SGB 2019-20 Series V redemption price for premature redemption on 15 October is ₹14,725 per unit. Here is how that price is set, what holders actually earn, and what to weigh before redeeming early.

SGB 2019-20 Series V redemption price: the RBI announcement

RBI press release 2026-2027/1329 says SGB 2019-20 Series V was issued on 15 October 2019. Under the government’s notification for that tranche, premature redemption is allowed after the fifth year from issue, on dates when interest is payable. The next such date is 15 October 2026.

The redemption price is the simple average of IBJA’s closing price for 999-purity gold over the three business days before redemption: 12, 13 and 14 October 2026. That works out to ₹14,725 per unit (one unit = one gram).

Checking the price ourselves

Source: IBJA PM rates from ibjarates.com; average worked out by us. It matches the RBI figure after rounding. Today’s rates are covered in our daily gold post; for earlier in the week see 13 October gold rates.

What the 2019 buyer earns

RBI’s press release of 4 October 2019 set the Series V issue price at ₹3,788 per gram, with a ₹50 discount (₹3,738) for those who applied online and paid digitally. Subscription was open from 7 to 11 October 2019.

Our calculations, before interest and tax. The 7-year period runs from October 2019 to October 2026.

For Meera’s 10 online units: ₹14,725 × 10 = ₹1,47,250, against ₹37,380 paid. That is a price gain of ₹1,09,870 on ten grams of paper gold, without any making charge, locker fee or purity worry along the way.

Plus the interest

SGBs of this period pay 2.5% a year on the issue price, credited every six months. On the ₹3,788 issue price, that is ₹94.70 per unit a year, or ₹47.35 every half-year. Over seven years, a holder would have received about ₹662.90 per unit. Check your bank statement for the exact credits you received.

Should you redeem early or wait?

An SGB runs for eight years. Series V matures in October 2027. Holders now have a choice: take ₹14,725 now, or hold for one more year. Neither is right for everyone. Points to weigh:

• Gold price risk. The maturity value will depend on gold prices in October 2027, which could be higher or lower. Gold has fallen over ₹3,000 per 10 grams since last Friday, a reminder of how much it moves.
• Interest. Holding one more year earns two more interest payments, about ₹94.70 per unit in total.
• Tax. The tax treatment of capital gains can differ between redemption with RBI at maturity, premature redemption with RBI, and sale on the stock exchange. Check current rules with a tax adviser before deciding; we are not giving tax advice here.
• Your need for cash. If you need money for a planned expense, locking a known value may matter more than a possible extra gain.
• Diversification. After a near fourfold rise, gold may now be a bigger share of your savings than you intended.

What one more year could look like

To make the trade-off concrete, here is what one unit might be worth at maturity under three simple gold scenarios. These are not forecasts; they only show the range.

Our calculations, before tax, ignoring the time value of receiving cash a year earlier.

How premature redemption works

1. Contact the entity where you hold the bond: your bank, post office, Stock Holding Corporation, or depository participant if held in demat.
2. Submit the redemption request within the window the bank or agent specifies before the interest date. For the 15 October date, that window has very likely closed; the next opportunity is the following interest date, six months later.
3. Receive the proceeds in the bank account linked to the bond on the redemption date.

If you miss the window, you can also sell SGBs held in demat on the stock exchange at the market price, which may be higher or lower than RBI’s redemption price, and liquidity can be thin.

Other options if you only need cash briefly

If you need money for a short while but want to keep the bond, some banks accept SGBs as collateral for loans, much as they lend against jewellery. Our gold loan guide explains how lenders value gold. Compare the loan interest with the cost of giving up the bond’s upside.

SGB vs physical gold

For rules on keeping physical gold at home, read our guide on household gold limits.

Here are short answers to what holders are asking.

FAQs

What is the SGB 2019-20 Series V redemption price?

₹14,725 per unit for premature redemption on 15 October 2026, as per RBI.

How is the redemption price calculated?

It is the simple average of IBJA’s 999-purity closing price for the three business days before redemption: 12, 13 and 14 October 2026.

When does Series V mature?

Eight years from the 15 October 2019 issue date, that is October 2027.

Is the gain taxable?

Tax depends on how and when you exit. Check current rules or ask a tax adviser.

Takeaway: The SGB 2019-20 Series V redemption price for 15 October 2026 is ₹14,725 a unit, nearly four times the 2019 issue price. Whether to redeem now or hold to 2027 depends on your cash needs, tax position and comfort with gold price swings.