RBI announces early redemption for SGB 2020–21 Series-VII with 153pc return in five years

THEBUSINESSBYTES BUREAU

MUMBAI, OCTOBER 20, 2025

Investors in the Sovereign Gold Bond (SGB) 2020–21 Series-VII have struck gold literally as the Reserve Bank of India (RBI) announced an early redemption price that translates into a remarkable 153 per cent gain over five years.

As per the RBI’s notification, investors holding this tranche can opt for premature redemption on October 20, 2025, exactly five years from its issue date. The redemption price has been set at ₹12,792 per gram, based on the average closing price of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) between October 15 and 17.

Originally issued on October 20, 2020, at ₹5,051 per gram, the Series-VII bonds have yielded investors a gain of ₹7,741 per gram, excluding the additional 2.5 per cent annual interest paid semi-annually during the holding period.

Launched by the Government of India, the Sovereign Gold Bond Scheme provides investors with an avenue to invest in gold without the risks and costs of physical storage. The bonds carry a maturity of eight years, with an early redemption option after five. Moreover, investors benefit from capital gains tax exemption on redemption after maturity, enhancing the scheme’s appeal.

The redemption value is calculated transparently, based on IBJA’s published gold prices over three business days preceding the redemption date.

Investors opting for early redemption must verify their bond series and apply through their banks, post offices, or designated agents within RBI’s specified timeline.

With this impressive return, the SGB scheme once again underscores gold’s enduring value as a secure and rewarding investment asset amid global economic uncertainties.