The Reserve Bank of India (RBI) has announced the premature redemption price of Sovereign Gold Bond (SGB) 2020-21 Series VII. This bond was issued on October 20, 2020, and investors can redeem it prematurely on October 20, 2025, i.e., upon completion of 5 years.
Investors are getting 153% return
According to the RBI, the redemption price for this series has been fixed at Rs 12,792 per gram. This price is based on the average price of gold over the last three trading days (October 15, 16, and 17, 2025).
When this bond was issued in October 2020, its issue price was Rs 5,051 per gram. Now, if an investor prematurely redeems this bond, they will receive Rs 12,792 — a total return of 153% (excluding interest).
In simple terms, investors will earn approximately Rs 7,741 per gram.
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