The Reserve Bank of India (RBI) has fixed the premature redemption price at ₹14,158 per unit for SGB 2020-21 Series X and SGB 2021-22 Series IV. The price has been calculated using the simple average of the closing price of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for July 15, 16 and 17, 2026.
SGB 2020-21 Series X was issued on January 19, 2021, at ₹5,104 per gram.
At the redemption price of ₹14,158, investors who bought at the issue price stand to make an appreciation of ₹9,054 per gram, translating into a return of around 177.4% over the original investment.
Investors who applied online and paid digitally had purchased the bonds at a discounted price of ₹5,054 per gram. For them, the appreciation works out to ₹9,104 per gram, or about 180.1%.
Apart from the increase in gold prices, SGB investors also earned a fixed interest of 2.5% per annum on the initial investment amount, paid semi-annually throughout the holding period. This interest is paid on the issue price and is separate from the capital appreciation on redemption.
Under the Sovereign Gold Bond Scheme, investors can opt for premature redemption after the fifth year from the date of issue on an interest payment date, even though the bonds have a maturity period of eight years.
Accordingly, SGB 2020-21 Series X became eligible for premature redemption on July 18, 2026. Since July 19 was a holiday, the redemption has been processed accordingly. SGB 2021-22 Series IV is due for premature redemption on July 20, 2026.
The redemption amount is credited based on the RBI-notified price, which is derived from the average closing price of 999 purity gold over the previous three business days as published by IBJA.
