SGB premature redemption in February 2026: RBI sets prices with 279% and 192% gains on two tranches

Compared to the issue price of ₹4,070 per gram (2019-20 Series IX) and ₹5,284 per gram (2020-21 Series V), investors will receive returns of 279% and 192%, respectively, on both tranches. 

“...the redemption price of SGB shall be based on a simple average of the closing price of gold of 999 purity of the 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 February 11, 2026, shall be ₹15,440/- (Rupees Fifteen Thousand Four Hundred and Forty only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., February 06, February 09, and February 10, 2026,” the RBI said in a release on February 10, 2026. 

SGB 2019-20 Series IX: Key details

• Issue date: February 11, 2020
• Premature redemption date: February 11, 2026 
• Issue price: ₹4,070 per gram
• Early redemption price: ₹15,440 per gram
• Absolute return: ₹11,370
• Return calculation: (11,370 ÷ 4,070) × 100 = 279.3% 

This means that investors who purchased the SGB 2019-20 Series IX in 2020 will book a profit of 279%.

SGB 2020-21 Series V: Key details

• Issue date: August 11, 2020
• Premature redemption date: February 11, 2026 
• Issue price: ₹5,284 per gram
• Early redemption price: ₹15,440 per gram
• Absolute return: ₹10,156
• Return calculation: (10,156 ÷ 5,284) × 100 = 192.2% 

Investors who purchased the SGB 2020-21 Series V in 2020 will book a profit of 192%. 

Upcoming premature redemptions of SGB tranches

Here are the upcoming SGB tranches eligible for premature redemption in the coming weeks, as per the RBI calendar:

Premature redemption

While SGBs have a tenure of eight years, they can be redeemed prematurely after 5 years from the date of issue. For early exit, the central bank releases a list of SGB tranches eligible for redemption every six months. 

Redemption prices for early exit are calculated based on a simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA).

With rising gold prices, SGBs have been delivering massive returns since 2025. The central government paused the SGB scheme in the Union Budget 2025 and isn’t expected to release any new tranches until they become cost-effective like other borrowing tools.