The Reserve Bank of India (RBI) has announced a large update for the first series of Sovereign Gold Bond (SGB) scheme, 2020-21. The RBI has fixed the date of April 28, 2025 for premature redemption (premature withdrawal of investment) under this scheme. The price per unit for this has been fixed at ₹ 9600. Let us tell you that the gold bond units of this scheme were announced on April 28, 2020.
Sovereign Gold Bond Plan Details
The Sovereign Gold Bond Scheme matures in 8 years, but it can be premature withdrawal even after 5 years. The scheme comes with a lock-in period of 5 years, which means that units can be sold 5 years after their release. However, the government has now discontinued the Sovereign Gold Bond Scheme.
RBI notification
RBI said in its notification, “Under the Sovereign Gold Bond Scheme, 2020-21 Series I (Publication Date: 28 April, 2020), the redemption is allowed before the time of gold bond on the date of payment of interest, ie, the date of payment.
How is the price determined?
The RBI said that the redemption price of SGB is determined based on the price of 999 purity published by the India Bullion and Jewelers Association (IBJA). This price will be based on an average of the closing price of gold for the three business days before the redemption date (23 April, 24 April and 25 April 2025). Accordingly, on April 28, 2025, the price of ₹ 9600 per unit for premature redemption has been fixed.
Important information for investors
Investors who invested in SGB 2020-21 Series I can opt for premature redemption on April 28, 2025. For this, they will get the price of ₹ 9600 per unit. The scheme not only provides investors the benefit of increase in gold price, but also provide interest income, making it an attractive investment option.
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