Sovereign Gold Bond Scheme: SGB early redemption due on April 28, RBI establishes rate at 9,600 each

Sovereign Gold Bond Scheme: The Reserve Bank of India (RBI) has actually revealed the early redemption rate for the Sovereign Gold Bond (SGB) Scheme, Series I of 2020-21, establishing it at 9,600 each. The redemption is set up for April 28, 2025. SGBs can be retrieved too soon after the conclusion of 5 years from the problem day, which for this collection is April 28, 2020.

“In terms of GOI Notification F. No. 4(4)-B(W&M)/2020 dated April 13, 2020 (SGB 2020-21 Series I – Issue date April 28, 2020) on Sovereign Gold Bond Scheme, 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. Accordingly, the next due date of premature redemption of the above tranche shall be April 28, 2025,” claimed the RBI in its round on Friday.

SGB early redemption rate

“Further, the redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association (IBJA). Accordingly, the redemption price for premature redemption due on April 28, 2025, shall be ₹9,600 per unit of SGB based on the simple average of closing gold price for the three business days i.e., April 23, April 24, and April 25, 2025,” included the reserve bank in its declaration.

SGBs are federal government safety and securities denominated in grams of gold, providing financiers both the market-linked worth of gold at maturation and a guaranteed yearly rate of interest of 2.5 percent, payable semi-annually. The federal government has actually given that terminated fresh issuances of SGBs after revealing so in Budget 2025.

67 tranches of SGBs provided till FY25

The federal government has actually provided an overall of 67 tranches of Sovereign Gold Bonds (SGBs) totaling up to 146.96 tonnes of gold till 2024-25, Parliament was notified on April 1. The impressive worth as on March 20, 2025, on problem rate is 67,322 crore for 130 tonnes of gold, Minister of State for Finance Pankaj Chaudhary claimed in a written reply.

Redemption of SGBs is based upon the dominating market value, he claimed. The federal government has actually kept a Gold Reserve Fund (GRF) in the Public Account where the rate and rate of interest differential quantity is attributed in time, he claimed.

The SGBs, along with various other loaning tools, have actually been a tool for increasing sources for funding monetary shortage, it claimed. However, along with these, SGBs likewise satisfied of savings/financial tools as a choice to physical gold, he claimed. Due to the current gold rate volatility and worldwide financial headwinds, this kind of loaning has actually ended up being fairly costly.