Sovereign Gold Bond
The scheme of Sovereign Gold Bond of Reserve Bank of India has given more than double returns to investors in 5 years. In fact, the Reserve Bank of India (RBI) has announced the premature rednight price of Sovereign Gold Bonds-VI on 8 September 2020. The RBI said in a statement that the premature rideption of this sovereign gold bond can be done by September 6, 2025. The duration of Sovereign Gold Bond (SGB) is eight years. However, Sovereign Gold Bond can be prematurely rednapped after five years. The special thing is that this series of this sovereign gold bond has made investors’ money more than double in five years; Let us also give you detailed information about it.
Detail of Sovereign Gold Bond (SGB) scheme
RBI manages this scheme from the Government of India. There is an option to keep paper gold, not physical gold. For which a demat account is opened. The special thing is that under this scheme, investors also get a fixed return of 2.5 percent every year. If you can get out before the scheme is matured and after 5 years. The special thing is that these bonds are transferable and a loan can also be achieved through them.
How is the SGB Redemption Price calculated?
According to the RBI press release issued on September 5, 2025, the SGB’s rednight price, the redness of the redness of the last three commercial days will be based on the simple average of the closing price of 999 purity of the last three commercial days, as is published by the India Bullion and Jewelers Association Limited (IBJA).
SGB 2020-21 Series-What is the redness price of VI?
According to the press release, on September 6, 2025, SGB 2020-21 Series-VI will have a rednight price for the premature rideption of VI, three working days, ie 3 September, September 4 and September 5, September 4 and September 5, based on the simple average of the price of gold closed for September 4, September 4, 2025, the SGB will be Rs 10,610 per unit. SGB 2020-21 Series-VI was released at the rate of Rs 5,117 per gram in August 2020. On the date of premature rednight, it will get a full simple return of about 107.35 percent. Full return comes Rs 10,610 – Rs 5,117 = 5,493 rupees (except interest). According to percentage, it is Rs 5,493 ÷ 5,117 rupees × 100 = 107.35 percent. If we talk about interest, then SGBs provide interest on the initial investment amount at the rate of 2.50 percent (fixed rate) per year. The interest amount is deposited in the bank account of SGB investor every 6 months. The final installment of interest is payable on maturity with principal.