The Reserve Bank of India (RBI) has announced the premature redemption of Sovereign Gold Bonds (SGBs) under the 2020-21 Series VI, issued on September 8, 2020.
The redemption has been permitted today, September 6, 2025, and the price has been fixed at Rs 10,610 per unit, which is a 107.35% gain over the issue price of Rs 5,117. (Image: File Pic)
The RBI stated, “The due date of premature redemption of the (SGB 2020-21 Series VI, issue date September 08, 2020) tranche shall be on September 06, 2025 (September 07 and September 08 being holidays),” (Image: File Pic)
The redemption price has been calculated on the basis of the simple average of closing gold prices published by the India Bullion and Jewellers Association (IBJA) for the three business days — September 3, 4, and 5, 2025. (Image: Canva)
As per the SGB scheme, the gold bonds shall be repayable on the expiration of eight years from the date of the issue of the bonds. (Image: File Pic)
However, premature redemption of the bonds may be permitted after the fifth year from the date of issue of bonds and such repayments will be made on the next interest payment date. (Image: Canva)
The interest on the SGBs is taxable as per the provisions of the Income-tax Act, 1961 (Section 43 of 1961). (Image: Canva)
The capital gains tax arising on redemption of these bonds to an individual is exempted. The indexation benefits will be provided to long-term capital gains arising to any person on the transfer of the bonds. (Image: File Pic)
Interest on the gold bonds, at an annual fixed rate of 2.5%, is credited semi-annually to the bank account of the investors. (Image: Canva)
The Sovereign Gold Bond (SGB) Scheme was launched by the Government of India in November 2015 as an alternative to owning physical gold. (Image: Canva)
The scheme aims to reduce India’s dependence on imported physical gold, curb hoarding, and channel household savings into financial assets. (Image: Canva)
