Archive · 15 Jan 2026
RBI Announces Early Redemption for SGB Series
The Reserve Bank of India (RBI) has announced that investors in a specific series of Sovereign Gold Bonds (SGBs) can get their money back early.
These bonds were issued in 2019, and the RBI has set the redemption price at Rs 14,092 per unit.
This means investors will get a 309.29% return on their investment, not including the annual interest they've earned.
The bonds were originally sold for Rs 3,443 per unit, and there was an extra discount of Rs 50 for those who paid online.
The redemption price is based on the average price of gold over three days in January 2025.
The SGB scheme was started by the Indian government as an alternative to buying physical gold, offering both interest and the potential for capital gains.
The scheme was discontinued in 2023, but existing bonds like these can still be redeemed early.
The RBI has announced the early redemption of Sovereign Gold Bonds (SGBs) under the 2019-20 Series-II, issued on July 16, 2019.
The redemption will take place on January 16, 2026, at a price of Rs 14,092 per unit, representing a 309.29% gain over the issue price of Rs 3,443.
Including a Rs 50 discount for online payments, the total gain is 315.32% based on the issue price of Rs 3,393.
The redemption price is calculated based on the simple average of closing gold prices published by the India Bullion and Jewellers Association (IBJA) for three business days in January 2025.
The SGB scheme, launched in 2015, aimed to provide an alternative to physical gold investment, offering a fixed annual interest rate of 2.5% and capital appreciation linked to gold prices.
- Who
- Investors in Sovereign Gold Bonds (SGBs) under the 2019-20 Series-II
- What
- Early redemption of SGBs announced by the RBI
- When
- Redemption date is January 16, 2026
- Where
- India
- Why
- To allow investors to benefit from a significant gain over the issue price
- Redemption Date
- January 16, 2026
- Redemption Price
- Rs 14,092 per unit
- Issue Date
- July 16, 2019
- Issue Price
- Rs 3,443 per unit
- Discount for Online Payment
- Rs 50
- Annual Interest Rate
- 2.5%
- Gain Percentage
- 309.29% (315.32% with discount)