What is the Early Redemption Price for SGB 2020–21 Series-VII? Investors Achieve 153% Returns!
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Synopsis
The RBI has announced the early redemption price for the SGB 2020–21 Series-VII, offering a remarkable 153% return over five years. This insight highlights the growing appeal of gold as an investment, presenting both opportunities and advantages for investors. Learn how to maximize your benefits from this announcement!
Key Takeaways
- RBI announces early redemption for SGB 2020–21 Series-VII.
- Investors can redeem on October 20, achieving a 153% return.
- Redemption price is Rs 12,792 per gram.
- Tax benefits apply on redemption after maturity.
- Gold remains a stable investment asset.
Mumbai, Oct 20 (NationPress) The Reserve Bank of India (RBI) has revealed the early redemption date and price for the Sovereign Gold Bond (SGB) 2020–21 Series-VII, allowing investors to celebrate an impressive 153 percent return over a five-year period.
As per the central bank's announcement, investors in this series can choose to redeem early on October 20—precisely five years from the issuance date.
The redemption price has been set at Rs 12,792 per gram, calculated from the average closing gold prices of 999 purity reported by the India Bullion and Jewellers Association (IBJA) during the three trading days preceding the redemption date, between October 15 and 17, 2025.
This SGB Series-VII was launched on October 20, 2020, at a price of Rs 5,051 per gram. This translates to a profit of Rs 7,741 per gram, or approximately 153 percent, not including the additional semi-annual interest of 2.5 percent per annum that investors also benefited from during the holding period.
The Sovereign Gold Bond Scheme, introduced by the government, provides a way for investors to gain exposure to gold without the necessity of physical ownership.
Each bond has a duration of eight years, with the option for early redemption after five years. Investors are also entitled to tax advantages, as there is no capital gains tax imposed on redemption after maturity.
The redemption value is determined based on the average closing price of gold (999 purity) for the three working days prior to the redemption date, as published by IBJA. This guarantees a transparent and equitable valuation aligned with market rates.
Those interested in opting for early redemption should verify the issuance date and series of their SGB holdings to confirm eligibility.
They must submit redemption requests through their respective banks, post offices, or agents managing their SGB accounts within the timeline set by the RBI.
With this announcement, the RBI emphasizes the strong performance of gold as an investment vehicle, providing both stability and attractive long-term gains.
Point of View
It's crucial to recognize the RBI's latest announcement regarding the early redemption of the Sovereign Gold Bond Series-VII. This move not only reflects the growing stability of gold as an investment but also highlights the government's initiative to provide investors with flexible options. It's essential for investors to stay informed and take advantage of such opportunities to enhance their portfolios.
NationPress
20/10/2025
Frequently Asked Questions
What is the early redemption price for SGB 2020–21 Series-VII?
The early redemption price is set at Rs 12,792 per gram based on the average closing gold prices of 999 purity.
When can investors redeem their SGB early?
Investors can opt for early redemption on October 20, which marks five years from the issuance date.
What was the original issuing price of SGB Series-VII?
The SGB Series-VII was originally issued at Rs 5,051 per gram.
What are the tax benefits associated with SGB?
Investors enjoy tax advantages, as there is no capital gains tax on redemption after maturity.
How is the redemption value determined?
The redemption value is based on the average closing price of gold (999 purity) for the three working days prior to the redemption date.
