Scheduled for today i.e. April 28, 2025, the Reserve Bank of India (RBI) had announced the premature redemption price for the Sovereign Gold Bond (SGB) Scheme, Series I of 2020-21 at Rs 9,600 per unit. This amounts to an exorbitant gain of 107 per cent in comparison to the issue price of Rs 4,639 for retail investors. For other investors who invested in the security through the online route, the investors will reap a significant 109 per cent return.
Rules concerning SGB redemption
As per the FAQs on SGB redemption on the RBI website, even though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates. The bond will be tradable on exchanges, if held in demat form. It can also be transferred to any other eligible investor, it added.
Accordingly, the premature redemption for this particular series of SGB falls on April 28, 2020.
How to prematurely redeem your SGB investment?
In case of premature redemption, investors can approach the concerned bank or Stock Holding Corporation of India (SHCIL offices) or Post Office or agent thirty days before the coupon payment date.
Also, the FAQ pointed out that such a request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date.
What are Sovereign Gold Bonds?
Sovereign gold bonds were introduced in the year 2015 to channelize households spending on physical gold to financial investment in gold (i.e. risk risk-free in respect of theft and other hassles such as storage cost) and also offered an attractive rate of interest.
Typically, these are government securities denominated in grams of gold issued by the Reserve Bank on behalf of the Government of India.
Investors in SGBs get both the market-linked price of gold at maturity together with an annual interest of 2.5 per cent, credited semi-annually.
Anurag Dhole is a seasoned journalist and content writer with a passion for delivering timely, accurate, and engaging stories. With over 8 years of experience in digital media, she covers a wide range of topics—from breaking news and politics to business insights and cultural trends. Jane's writing style blends clarity with depth, aiming to inform and inspire readers in a fast-paced media landscape. When she’s not chasing stories, she’s likely reading investigative features or exploring local cafés for her next writing spot.
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
- ANURAG DHOLEhttps://indiatadkha.com/author/bitlancetechhubgmail-com/
