Sovereign Gold Bonds 2020-21 Series VI: RBI Announces Early Redemption, Investors to Gain Over 108%
The Reserve Bank of India (RBI) has approved premature redemption of Sovereign Gold Bonds (SGBs) under the 2020-21 Series VI, which were originally issued on September 8, 2020. This decision allows investors to redeem their bonds early and enjoy significant returns. Redemption Price and Returns Yesterday 6th September, the redemption price has been fixed at ₹10,610 per unit, marking an impressive 107.35% gain over the issue price of ₹5,117. This gain is exclusive of the interest earned during the holding period. The redemption price was calculated based on the simple average of closing gold prices published by the India Bullion and Jewellers Association (IBJA) for three business days — September 3, 4, and 5, 2025. Premature Redemption Rules Under the SGB scheme: Bonds are normally repayable after 8 years from the issue date. Premature redemption is allowed after the fifth year of issuance, and repayments are made on the next interest payment date. This gives investors flexi...