RBI announces early redemption price for SGB 2020–21 series-VII; investors gain 153 pc in 5 yrs

Mumbai: The Reserve Bank of India (RBI) has announced the premature redemption date and price for the Sovereign Gold Bond (SGB) 2020–21 Series-VII, giving investors an impressive 153 per cent return over five years.

According to the central bank’s notification, investors in this tranche can opt for early redemption on October 20 — exactly five years from the date of issue.

The redemption price has been fixed at Rs 12,792 per gram, based on the average closing gold prices of 999 purity published by the India Bullion and Jewellers Association (IBJA) between October 15 and 17, 2025.

The SGB Series-VII was originally issued on October 20, 2020, at Rs 5,051 per gram. This means investors have earned a gain of Rs 7,741 per gram, or about 153 per cent, excluding the additional semi-annual interest of 2.5 per cent per year that they also received during the investment period.

The Sovereign Gold Bond Scheme, launched by the government, allows investors to invest in gold without the need to hold it physically.

Each bond has a tenure of eight years, with an option for early redemption after five years. Investors also enjoy tax benefits, as no capital gains tax is levied on redemption after maturity.

The redemption value is determined using the average closing price of gold (999 purity) for the three working days before the redemption date, as published by IBJA. This ensures a transparent and fair valuation linked to market rates.

Investors who wish to opt for early redemption should confirm the issue date and series of their SGB holdings to ensure eligibility.

They are required to submit their redemption requests through their respective banks, post offices, or agents managing their SGB accounts within the timeline specified by the RBI.

With this announcement, the RBI has once again highlighted the strong performance of gold as an investment asset, offering both stability and attractive long-term returns.

IANS