If you had invested in the Sovereign Gold Bond (SGB) 2020–21 Series-IV, then there is a great chance for you. On July 14, 2025, this SGB scheme will be eligible for early redemption. The special thing is that investors who redeem now will get almost 100% return on their investment. The Reserve Bank of India (RBI) has fixed the redemption price for this series at ₹9,688 per gram. This bond was issued in July 2020 at ₹4,852 per gram.
This means investors will get a direct profit of ₹4,836 (₹9,688 – ₹4,852) per gram. In percentage, this is around 99.67% return on the main amount. Apart from this, investors have also earned 2.5% yearly interest, which is not included in this return.
What is Sovereign Gold Bond (SGB)? Who is the issuer?
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash, and the bonds will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the Government of India.
Who is eligible to invest in the SGBs?
Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with a subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity
When and How to Redeem?
Premature redemption is allowed only after 5 years from the date the bond was issued. It can be done only on the interest payment date. For this series, the next redemption date is July 14, 2025. If investors do not apply for redemption by this date, they will have to wait for the next interest payment date, which usually comes every six months from the issue date.
Redemption Process
Investors must apply for redemption through the same platform they used to buy the bond — like a demat account, bank, or post office. Make sure to apply before the due date to avoid delay.