The Sovereign Gold Bond (SGB) 2019–20 Series I premature redemption price has been released by RBI, and the figures are astounding. Those who want to leave early on December 11, 2025, would get profits that most investments can only imagine. This tranche, which was released in June 2019, has already completed its five-year lock-in.
Based on the simple average of 999-purity gold prices reported by IBJA on December 8, 9, and 10, the RBI set the redemption price at Rs 12,801 per unit.
Investors now have a gain of Rs 9,682 per unit—a remarkable return of nearly 210% in just five and a half years, minus the 2.5% annual interest payouts—compared to the issue price of Rs 3,119 per unit.
To put it another way, an investment of Rs 1 lakh in this SGB would have brought in around 32 units in 2019. The investor’s money will be multiplied fourfold on December 11 when those units are valued at around Rs 4.09 lakh, plus interest income throughout time.
How early redemption operates
Investors may leave SGBs early beginning in the fifth year, but only on the dates when semi-annual interest is paid. SGBs have an eight-year term. The investor’s bank, post office, or agency from which the bond was acquired must be contacted in order to commence premature redemption, usually with a request made several days in advance.
What is the Sovereign Gold Bonds program?
The Indian government launched the SGB Scheme in November 2025 as a substitute to encourage gold ownership. The Reserve Bank of india issued the bonds on the Center’s behalf. Investors received two benefits from the gold-denominated bonds: capital appreciation based on gold prices and a set yearly interest rate of 2.5% on the issue price. The program’s main objectives were to minimize hoarding, direct family savings into financial assets, and lessen India’s need on imported physical gold.
How Do Sovereign Gold Bonds Operate?
All you have to do to invest in Sovereign Gold Bonds is buy them from a bank, SHCIL, or specific post offices. An SGB certificate from the issuing bank or specific post offices is provided for offline transactions. You are able to gather it. Your demat account portfolio will show whether you bought an SGB online. The SGBs provide a 2.5% annual interest rate.
How are Sovereign Gold Bonds treated tax-wise?
The interest on SGBs is taxable under Section 43 of the Income-tax Act, 1961. A person does not have to pay capital gains tax when they redeem these bonds. The indexation advantages will apply to any capital gains resulting from the transfer of the bonds on the exchange.
