CALCULATE YOUR SIP RETURNS

RBI Sets Premature SGB Redemption Price at ₹10,070 Per Gram; 2019-20 Series Up 147% and 2020-21 Series Up 89%

Written by: Team Angel OneUpdated on: 11 Aug 2025, 10:21 pm IST
RBI sets SGB premature redemption price at ₹10,070 per gram for August 11 2025. Tranches 2019-20 Series IX and 2020-21 Series V. Based on IBJA 999 gold average.
RBI Sets Premature SGB Redemption Price at ₹10,070 Per Gram; 2019-20 Series Up 147% and 2020-21 Series Up 89%
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

The Reserve Bank of India has confirmed the premature redemption price for 2 Sovereign Gold Bond tranches that are eligible to exit on August 11, 2025. Holders of the 2019-20 Series IX and the 2020-21 Series V will receive ₹10,070 per gram, a figure derived from the IBJA average for 999 purity gold across the 3 business days prior to redemption.

What the RBI Has Announced on SGB Premature Redemption

The RBI has set the premature redemption price for Sovereign Gold Bonds at ₹10,070 per gram for the window falling on August 11, 2025. This applies to investors opting for early exit in line with the scheme rules.

Which SGB Tranches Are Eligible

The eligible tranches are 2019- 20 Series IX, issued in February 2020, and 2020 21 Series V, issued in August 2020. Both are part of the Government of India Sovereign Gold Bond programme administered by the RBI.

How the Redemption Price Is Calculated

The redemption price of ₹10,070 per gram is based on the simple average of closing prices for 999 purity gold published by the India Bullion and Jewellers Association over the 3 business days immediately preceding the redemption date.

Returns Snapshot for SGB Investors

Investors in the February 2020 tranche have recorded a compounded annual growth rate of about 20% over five years, while the August 2020 tranche has delivered around 13.5% over the same period. These figures exclude the additional 2.5% annual interest on the issue price, which is paid semiannually and raises the effective yield.

In absolute terms, the 2019-20 Series IX shows gains of about 147%, and the 2020-21 Series V shows about 89%. These outcomes reflect the ascent in domestic gold prices since early 2020.

Gold Price Context Behind the SGB Redemption Price

Gold traded around ₹4,070 per gram in February 2020, before rising to roughly ₹5,334 per gram by August 2020 as global uncertainty increased. Since then, factors such as inflation concerns, geopolitical tensions, and steady central bank demand have supported elevated prices, which is reflected in the current SGB redemption price set by the RBI.

Why Returns Differ Across the 2 SGB Tranches?

Entry points were different. The February 2020 issue preceded the sharp rise that followed the early pandemic phase, while the August 2020 issue came after prices had already advanced. This timing difference explains the stronger CAGR for the February tranche relative to the August tranche.

Programme Considerations for Sovereign Gold Bonds

The sustained rise in gold prices has prompted discussion about the long-term costs of the SGB programme, including higher redemption outgo and future obligations. These considerations are part of routine policy assessment and do not alter the published redemption mechanics for the current window.

Read More:SGB 2019–20 Series II Offers 184% Gain: RBI Sets ₹9,791 Redemption Price for July 16, 2025 Premature Exit

Conclusion

The RBI has set ₹10,070 per gram as the premature redemption price for the SGB exit window on 11 August 2025. The calculation follows the IBJA 999 purity gold average over three preceding business days, and the returns data cited reflect capital appreciation separate from the 2.5% annual interest on the issue price.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Aug 11, 2025, 4:50 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers