SGB 2019-20 Series VI Redemption Price Fixed At ₹14,213 Per Gram; Online Investors Set To Earn Up To 275.5% Returns

The Reserve Bank of India (RBI) has set the SGB 2019-20 Series VI redemption price at ₹14,213 per gram. Investors who bought these bonds in October 2019 can now exit with gains of 270.6% on offline subscriptions and 275.5% on online purchases. These returns do not include the interest earned during the holding period.

The redemption window opened on Friday, 30 October 2026. The original issue price was ₹3,835 per gram. Online applicants had paid ₹3,785 per gram after receiving a discount of ₹50.

How Much Will Investors Receive On Redemption?

The nearly seven-year holding period has brought a sizeable difference between the purchase price and the amount investors can now receive. An offline investor who bought 10 grams for ₹38,350 can redeem the holding for ₹1,42,130. This translates into a gain of ₹1,03,780, before accounting for interest payments.

The RBI has used the average closing price of 999-purity gold over the last three business days to arrive at the SGB redemption price for 2026. The relevant dates were 27, 28 and 29 October 2026. The prices were published by the India Bullion and Jewellers Association Ltd (IBJA).

Investors are not required to wait for the full eight-year tenure to end. Under the Sovereign Gold Bond premature redemption rules, SGB holders can seek early redemption once five years have passed from the issue date, provided the exit falls on a scheduled interest payment date.

Why Are Sovereign Gold Bonds Still Relevant?

Introduced in November 2015, Sovereign Gold Bonds gave investors a way to invest in gold without buying the physical metal. Each bond represents one gram of gold, and its redemption value moves with the prevailing gold price.

There is another benefit. SGBs carry an annual interest rate of 2.5% on the original investment, with payments made every six months. Investors can also trade their holdings on stock exchanges, depending on market liquidity.

The government has not brought out a new SGB issue since February 2024, when it launched the 2023-24 Series IV. A year later, it made its position clear: there would be no fresh bonds, mainly because of the high borrowing cost involved in running the scheme.

For people who already own these bonds, nothing changes. Their interest payments will continue as scheduled. They can also choose to cash out after completing five years or simply keep the investment until the eight-year term is over.

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