RBI sets premature redemption price for SGB 2019-20 Series-X at ₹10,905 per gram, delivering 156% returns; check details

Notably, the 156% return is apart from the 2,5% annual interest offered on SGBs. While these bonds have a tenure of eight years, premature redemption is allowed after the fifth year from the bond’s issuance.

Premature redemption can only take place on scheduled interest payout dates (twice a year, every six months).

The redemption price is calculated on the basis of the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption, as per the central bank’s rules. Gold rates published by the India Bullion and Jewellers Association Ltd (IBJA) are considered for calculating the redemption price. Thus, the price of this tranche was determined on the basis of closing gold prices on September 8, 9 and 10.

Other SGB series

SGBs offer a secure way of investing in gold, as they’re government-backed. The first SGB tranche was issued in November 2017. Since then, 67 tranches have been issued.

In the past couple of months, the RBI has announced the redemption price of many SGBs, all giving remarkable returns to the investors. While Sovereign Gold Bond (SGB) 2017-18 Series II gave a return of 250.6%, Sovereign Gold Bonds (SGB) 2019-20 Series-IX delivered a 147% return.

Here are the details of major SGBs and their redemption prices announced earlier:

Now, only one SGB issue is left that will open for premature redemption for the April-September 2025 period. The SGB 2019-20 Series IV, issued on September 17, 2019, will be due for premature redemption on September 17, 2025.

Gold prices have seen a consistent rise in 2025. The yellow metal thrives in geopolitical turmoil and fluctuating markets, and its demand and prices jump during uncertainties, as investors rush to safer instruments. In just this year, the precious metal has risen by over 30%.

The government discontinued the SGB scheme in the Union Budget 2025. No new issue of SGB is expected until it becomes cost-effective for the government to offer them.