RBI Fixes Early Exit Price For SGB Series-VII; Five-Year Returns Soar 153%

RBI has announced the early redemption price and date for SGB 2020-21 Series-VII, offering investors an impressive five-year gain of 153%.

According to the RBI, investors in this series may redeem their bonds early on October 20, marking five years since issuance.

The RBI has fixed the early redemption price of the SGB 2020-21 Series-VII at Rs 12,792 per gram.

RBI calculates the redemption price using the average closing prices of 999-purity gold, reported by IBJA from October 15 to 17, 2025, ensuring a valuation linked to market rates.

The SGB Series-VII was initially issued on October 20, 2020, at Rs 5,051 per gram.

This means investors have gained Rs 7,741 per gram, or about 153 per cent, excluding the additional semi-annual interest of 2.5 per cent per year earned during the investment period.

Through the Sovereign Gold Bond Scheme, investors can invest in gold without taking physical possession.

Each bond lasts eight years, with an early redemption option after five years, and offers tax benefits since redemption at maturity is exempt from capital gains tax.

RBI determines the redemption value using the average closing gold price (999 purity) for the three working days preceding the redemption date, as published by IBJA.

This ensures a fair and transparent valuation linked to market rates.

Investors who wish to redeem early should verify the issue date and series of their SGB holdings to confirm eligibility.

They must submit their redemption requests through their respective banks, post offices, or agents managing their SGB accounts within the RBI-specified timeline.

This announcement underscores the strong performance of gold as an investment, offering both stability and attractive long-term returns.

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