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RBI announces early redemption price for SGB 2020–21 series-VII

Giving investors an impressive 153% return over five years

RBI announces early redemption price for SGB 2020–21 series-VII

RBI announces early redemption price for SGB 2020–21 series-VII
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22 Oct 2025 12:30 PM IST

The Reserve Bank of India (RBI) has announced the premature redemption date and price for the Sovereign Gold Bond (SGB) 2020–21 Series-VII, giving investors an impressive 153 per cent return over five years.

According to the central bank’s notification, investors in this tranche can opt for early redemption on October 20 -- exactly five years from the date of issue. The redemption price has been fixed at Rs 12,792 per gram, based on the average closing gold prices of 999 purity published by the India Bullion and Jewellers Association (IBJA) between October 15 and 17, 2025.

The SGB Series-VII was originally issued on October 20, 2020, at Rs 5,051 per gram. This means investors have earned a gain of Rs 7,741 per gram, or about 153 per cent, excluding the additional semi-annual interest of 2.5 per cent per year that they also received during the investment period.

The Sovereign Gold Bond Scheme, launched by the government, allows investors to invest in gold without the need to hold it physically. Each bond has a tenure of eight years, with an option for early redemption after five years. Investors also enjoy tax benefits, as no capital gains tax is levied on redemption after maturity.

The redemption value is determined using the average closing price of gold (999 purity) for the three working days before the redemption date, as published by IBJA.

Sovereign Gold Bond RBI Gold Investment Early Redemption Investment Returns 
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