The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-XI, setting the value at Rs 14,564 per unit.
The central bank confirmed that investors can begin exercising their early redemption rights starting August 7, 2026, marking the first time holders of this specific tranche can exit their positions before the final maturity date.
The redemption price reflects a significant appreciation in the underlying asset, with the current valuation delivering a return of approximately 200% on the initial investment.
The redemption price reflects a significant appreciation in the underlying asset, with the current valuation delivering a return of approximately 200% on the initial investment.
An initial outlay of Rs 1 lakh in the bond issued in February 2021 has effectively grown to nearly Rs 3 lakh, driven by the cumulative rise in gold prices over the five-year period.
This performance underscores the dual benefit of the instrument, which combines capital appreciation with a fixed interest component.
The early redemption window opens for bonds issued five years ago, aligning with the RBI's standard policy that allows holders to exit after the fifth financial year.