Good news for Sovereign Gold Bond (SGB) investors. The Reserve Bank of India (RBI) has said the early redemption date for SGB 2019-20 Series IX and 2020-21 Series V. Investors can sell their bonds early on August 11, 2025, at ₹10,070 per unit.
SGBs are for 8 years, but you can sell early after 5 years from the issue date. You can only do this on interest payment days. The last SGB series, 2023-24 Series IV, came in February 2024.
Great Returns for Investors
Investors who bought 2019-20 Series IX in September 2019 at ₹4,070 per gram can now sell at ₹10,070. They will get a profit of ₹6,000 per unit. This is a return of 147%. This does not include the 2.5% yearly interest.
Investors who bought 2020-21 Series V in August 2020 at ₹5,334 per gram can get a profit of ₹4,736 per unit. This is a return of 89%.
About Sovereign Gold Bonds
The government started the Sovereign Gold Bond Scheme in November 2015. SGBs give 2.5% yearly interest. The interest is added to the bank account every six months. At maturity or early sale, the last interest is paid with the main money.
How is the Redemption Price Set?
The RBI says the redemption price is based on the average gold price of 999 purity. The price comes from the India Bullion and Jewellers Association (IBJA) for three days before the redemption date (August 6, 7, 8, 2025). The redemption price is ₹10,070 per unit.