SGB premature redemption date today: Sovereign gold bond turns Rs 1 lakh investment into Rs 3.16 lakh; check details

The Reserve Bank of India (RBI) has announced the premature redemption price of Sovereign Gold Bonds (SGB 2020-21 Series-XI-Issue date February 09, 2021). The maturity period of every sovereign gold bond (SGB) series is eight years. However, the premature redemption of SGBs is permitted after the fifth year from the date of the issuance of the series.

SGB 2020-21 Series-XI issue price

The SGB 2020-21 Series-XI was issued at Rs 4,912 per gram for offline investors. Online investors received a discount of Rs 50 per gram when applied and paid through digital mode. For such investors, the issue price of the gold bond was Rs 4,862 per gram.

What is the premature redemption price of SGB 2020-21 Series-XI?

The premature redemption price of SGB 2020-21 Series-XI due today on February 9, 2026, is Rs 15,374 per unit of SGB based on the simple average of the closing price of gold for the three business days, i.e., February 4, February 5 and February 6, 2026.


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How much return will investors get from the premature redemption of their investments in SGB 2020-21 Series-XI?

Since SGB 2020-21 Series-XI was issued at Rs 4,862 per gram on February 9, 2021, it will yield an absolute simple return of nearly 216% on the date of premature redemption.

The absolute return comes to be Rs 15,374 -Rs 4,862= Rs 10,510 (without factoring in the interest). In percentage terms, it is 10,510 ÷ 4,862 × 100 = 216.2%.

SGB interest rate

SGBs offer an interest rate of 2.50% per annum on the initial investment amount. The interest amount is credited semi-annually to the bank account of an SGB investor. The last interest instalment is payable on the maturity date of SGB along with the principal amount.

Sovereign Gold Bond (SGB) scheme details

The Sovereign Gold Bond (SGB) scheme, managed by the RBI on behalf of the Government of India, offers a secure, paper/demat alternative to holding physical gold, eliminating storage and purity concerns while paying a 2.5% annual interest. The premature redemption of SGBs is allowed after 5 years from the date of their issue, on interest payout dates.

At what price, are SGBs sold?

The nominal value of gold bonds shall be in Indian rupees fixed on the basis of the simple average of the closing price of gold of 999 purity, published by the India Bullion and Jewellers Association Limited (IBJA), for the last 3 business days of the week preceding the subscription period.