Sovereign Gold Bond early exit today: RBI announces SGB 2020-21 Series-IX redemption price, check investors' return- FAQs answered

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• RBI announces premature redemption of Sovereign Gold Bond 2020-21 Series-IX
• Redemption price set at Rs 13,381 per unit, up from issue price of Rs 5,177
• Investors gained about 158% to 161% over five years, plus 2.5% annual interest

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The Reserve Bank of India (RBI) has announced premature redemption of Sovereign Gold Bond 2020-21 Series-IX. The Gold bonds that were originally issued on January 5, 2021 are eligible for premature exit today as it completes five years from the date of issue. According to the terms of government of India notification, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable.

What is the redemption price for SGB 2020-21 Series-IX series

The Central bank has fixed the redemption price for premature redemption which is due today, i.e. January 05, 2026, at Rs 13,381 per unit of SGB.

How is the redemption price calculated

The redemption price of SGB is based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption is based on the simple average of closing price of gold for the three business days i.e., December 31, 2025, January 01, 2026, and January 02, 2026.

How much did investors gain?

The Sovereign Gold Bond (SGB) 2020–21 Series IX was issued on January 5, 2021, at an issue price of Rs 5,177 per unit, while online investors paid a discounted price of Rs 5,127 per unit.

With the premature redemption price fixed at Rs13,381 per unit, investors are sitting on strong gains.

Absolute gain:

Rs 8,204 per unit on the offline issue price

Rs 8,254 per unit for online subscribers

Percentage return (price appreciation only)

Around 158% over five years for offline investors

Around 161% for online investors

In addition to this price appreciation, investors also earned 2.5% annual interest, paid semi-annually, taking the overall effective return even higher.

How premature redemption works

SGBs have an 8-year tenure, but investors are allowed to exit early starting the 5th year—only on the dates when semi-annual interest is paid. Premature redemption must be initiated through the investor’s bank, post office, or agent from whom the bond was purchased, typically with a request submitted several days in advance.

What is the Sovereign Gold Bonds scheme?

SGB Scheme was introduced by the Indian government in November, 2025 as an alternative to attract gold ownership. The bonds were issued by the RBI for and on behalf of the Centre. The bonds denominated in grams of gold offered investors dual benefit-- earning a fixed annual interest of 2.5% on the issue price and earning capital appreciation linked to gold prices. The scheme majorly aimed to reduce India’s reliability on imported physical gold, curb hoarding, and channel household savings into financial assets.

How Do Sovereign Gold Bonds Work?

If you want to invest in Sovereign Gold Bonds, all you need is to purchase Sovereign Gold Bond from either a bank, SHCIL or designated post offices. For offline purchases, an SGB certificate from the holding of the issuing bank or designated post offices is issued. You can collect it. In case you have purchased an SGB online, your demat account portfolio will reflect. The SGBs offer an interest of 2.5% per annum.

What is the tax treatment of Sovereign Gold Bonds

As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable. When an individual redeems these bonds, they are free from paying capital gains tax. Any capital gains that result from the transfer of the bonds on the exchange will be eligible for the indexation benefits.