Sovereign gold bonds redemption: RBI units Rs 10,070 as untimely redemption value for 2 SGB sequence, buyers acquire as much as 147% returns
The Reserve Financial institution of India (RBI) has introduced that buyers in Sovereign Gold Bonds (SGB) 2019-20 Collection-IX and 2020-21 Collection-V can go for untimely redemption on August 11, 2025, at Rs 10,070 per unit.These government-backed bonds, with an eight-year tenure, permit early redemption solely after the fifth yr from the date of situation and completely on curiosity payout dates, based on an ET report. The newest SGB tranche—SGB 2023-24 Collection IV—was issued in February 2024.What it means for youWhen you invested within the SGB 2019-20 Collection-IX in September 2019 at Rs 4,070 per gram, your untimely redemption will yield an absolute acquire of Rs 6,000 per unit—about 147%—excluding the two.5% annual curiosity. Buyers within the SGB 2020-21 Collection-V, issued in August 2020 at Rs 5,334 per gram, will earn an 89% absolute return, or Rs 4,736 per unit, excluding curiosity.On high of those capital positive aspects, the bonds pay a set 2.5% curiosity yearly, credited semi-annually to your checking account. The ultimate curiosity instalment is paid together with principal on maturity.How the redemption value is calculatedBased on the RBI’s August 8 press launch, the worth relies on the easy common of closing gold costs (999 purity) over the three enterprise days earlier than redemption—August 6, 7 and eight—printed by the India Bullion and Jewellers Affiliation Ltd (IBJA).What it’s essential to do now
- Examine your SGB tranche and situation date to verify eligibility.
- Submit your redemption request earlier than the deadline talked about within the RBI schedule.
- Keep in mind: the bonds are additionally tradable, transferable and will be pledged as collateral.
The SGB scheme affords a secure different to bodily gold, eradicating storage and purity considerations whereas delivering regular curiosity revenue and potential value appreciation
