The Reserve Bank of India (RBI) has announced the premature redemption prices for Sovereign Gold Bond (SGB) 2020-21 Series VI and Series XII. According to RBI, premature redemption of Series VI will take place on March 7, 2026 (March 8 being a holiday). Whereas the redemption of Series XII will take place on 9 March 2026.
Premature exit facility after 5 years
According to RBI rules, people investing in SGB can redeem it prematurely even after 5 years of bond issue. This facility is available on the day when interest on the bond is paid.
SGB 2020-21 Series VI Price
The price for premature redemption to be held on March 7, 2026 has been fixed at Rs 16,063 per unit. This price has been decided on the basis of the average of the closing prices of gold on 4, 5 and 6 March 2026. When this bond was issued, its price for offline investors was Rs 5,117 per gram. Those who applied online got a discount of Rs 50 and got it for Rs 5,067. If an investor looks at the basis of online purchase, he will get a profit of approximately Rs 10,996 per unit (except interest). In percentage terms, this works out to be a return of around 217%.
SGB 2020-21 Series XII Price
For Series XII also the premature redemption price has been fixed at Rs 16,063 per unit. This bond was available to offline investors at Rs 4,662 per gram and to online investors at Rs 4,612 per gram. According to this, investors will get a profit of about Rs 11,451 per unit (except interest). In percentage terms this is a return of approximately 248%.
What is Sovereign Gold Bond (SGB)?
Sovereign Gold Bond is a gold investment option issued by the government. Investment in this is done according to the grams of gold. In this the investor does not need to buy real gold. Investors deposit money initially and get cash payment on maturity. These bonds are issued by the Reserve Bank of India on behalf of the Government of India.
How much interest do you get?
Fixed interest of 2.5% is available every year on SGB. This interest is paid on the principal amount of the investment and is sent to the investor’s bank account every six months. At the time of maturity, the principal amount is also returned along with the final interest.
When do I get the investment certificate?
When an investor buys SGB, he is issued a holding certificate on the same day. This certificate can be obtained through bank, post office, stock exchange or agent. If email is given in the application, RBI can also send it directly to email.