MUMBAI: The Reserve Bank of India (RBI) has announced August 11, 2025, as the premature redemption date for two tranches of Sovereign Gold Bonds (SGBs) – the 2019-20 Series IX and 2020-21 Series V.
What are SGBs?
Sovereign Gold Bonds or SGB are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. They allow investors to earn returns linked to gold prices without holding physical gold. SGBs carry an 8-year maturity, with an option for early redemption after the fifth year on interest payment dates, and pay 2.5 per cent annual interest in addition to capital gains.
Big gains for early redeemers
Investors who purchased the 2019-20 Series IX in September 2019 at Rs4,070 per gram will earn an absolute gain of 147 per cent – or Rs6,000 per unit – at the redemption price of Rs10,070 per unit. This does not include the interest earned over the holding period.
Similarly, investors in the 2020-21 Series V, issued in August 2020 at Rs5,334 per gram, will see a gain of Rs4,736 per unit, or 89%, excluding interest.
How is the redemption price decided?
According to the RBI, the redemption price is based on the simple average of closing gold prices of 999 purity for the previous three business days before redemption, as published by the India Bullion and Jewellers Association (IBJA).
For the early redemption on August 11, the price is calculated using gold rates from August 6, 7, and 8, 2025, arriving at Rs10,070 per unit.
The most recent SGB issuance, the 2023-24 Series IV, was floated in February 2024
