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

The Reserve Bank of India has announced the redemption price for Sovereign Gold Bond (SGB) 2019–20 Series II, which is eligible for premature redemption on July 16, 2025. Investors who subscribed to this tranche on July 16, 2019, can now redeem their holdings after the 5-year lock-in, as permitted under the scheme guidelines.

₹9,791 Fixed as Redemption Price for SGB 2019–20 Series II

The redemption price has been set at ₹9,791 per unit. This price is calculated based on the simple average of gold prices (999 purity) published by the India Bullion and Jewellers Association Ltd on the previous 3 business days, i.e., July 11, July 14 and July 15, 2025. This method of averaging ensures a fair value reflective of current gold market conditions.

SGB 2019–20 Series II was originally issued at ₹3,443 per gram. With the current redemption price at ₹9,791, investors gain an absolute return of ₹6,348 per unit, translating to a capital gain of 184% excluding interest payouts. This makes it a highly rewarding option for gold investors.

Interest Component and Tax Treatment

In addition to capital gains, the bond pays 2.50% annual interest on the initial investment, credited semi-annually. While interest is taxable, the capital gains on premature redemption after 5 years are tax-free for individual investors, offering a dual advantage of income and exemption.

Read More: SGB 2020-21 Series-IV Generated 100% Return: Redemption Window Opens on July 14!

Redemption Process and Payment Details

Eligible bondholders must submit a request through the issuing bank, post office or agent at least one working day before the interest payment date. Upon approval, the redemption proceeds will be credited to the registered bank account. It is advised to verify and update contact and account details in advance.

Conclusion

The ₹9,791 redemption price for SGB 2019–20 Series II marks a substantial return for investors exiting after 5 years. Coupled with tax exemption on gains and guaranteed interest payouts, SGBs remain a compelling option for gold exposure in financial portfolios.

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