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If you have invested in Sovereign Gold Bond (SGB) 2020-21 Series-IV, then a golden opportunity is coming for you. The Reserve Bank of India has announced that the premature redemption of this series will be held on July 14, 2025, in which investors are expected to get about 100% returns on their investment. The bond was released in July 2020 at a price of Rs 4,852 per gram, and now its redemption price has been fixed at Rs 9,688 per gram.
This means that investors will have a direct benefit of Rs 4,836 (Rs 9,688 – 4,852), which shows a return of about 99.67%. In addition, investors have also received a fixed interest of 2.5% per year, which is not included in this return. According to the RBI, the Redemption Price has been determined on the average of 999 purity gold -off prices on 9, 10 and 11 July 2025 published by India Bullion and Jewelers Association Limited (IBJA).
Redemption process and date
According to the terms of the Sovereign Gold Bond, premature redemption is allowed on the date of interest payment, 5 years after the date of release. The next redemption date for this series is 14 July 2025. If investors do not submit a redemption request by this date, they will have to wait for the next half interest payment date, which usually comes every six months from the date of release.
For redemption, investors must submit requests through their original purchase medium, such as a demat account, bank or post office. According to the RBI guidelines, the redemption request should be presented at least 10 days before the date of interest payment. The redemption amount will be deposited directly to the investor’s bank account, which is registered at the time of bond purchases. If there is any change in the account details, investors should immediately inform the bank, post office or SHCIL.
Characteristics of SGB
The Sovereign Gold Bond is the government securities issued by the Government of India through the RBI, which is valued in the gold units in the village. These bonds offer a safe option to keep physical gold, where investors get the benefit of increase in gold price and also get an annual interest of 2.5% payable every six months. The maturity period of these bonds is 8 years, but after 5 years, the option to redeem prematurely is also available.
In the Union Budget 2025, the government has decided to shut down new issues of the Sovereign Gold Bond Scheme, but the current bonds will continue till maturity or specified premature redemption dates. Investors are advised to contact RBI’s official website or your bank, post office for specific information about redemption dates and process.