RBI Announces Sovereign Gold Bond Redemptions

The State Bank of India has announced the premature redemption prices and dates for several series of the Sovereign Gold Bond (SGB) scheme, including the 2018–19 Series-I, 2020-21 Series-VII, and 2019-20 Series-VI. Investors in these tranches can opt for early redemption after the fifth year from the issue date, on specific interest payment dates in October and November 2025. The redemption prices are calculated based on the simple average closing price of 999 purity gold published by the India Bullion and Jewellers Association for the three preceding working days. For example, the SGB 2018–19 Series-I, issued at Rs 3,064 per gram, has a redemption price of Rs 12,039 per gram, yielding an absolute return of nearly 293% (excluding interest). Similarly, the SGB 2020-21 Series-VII, issued at Rs 5,051 per gram, has a redemption price of Rs 12,792 per unit, yielding about 153% return. The SGB 2019-20 Series-VI, issued at Rs 3,835 per gram, has a redemption price of Rs 11,992 per unit, yielding about 217% return. These bonds offer the dual benefit of gold price appreciation and a fixed annual interest rate, providing a secure and transparent alternative to physical gold for investors in India.