Investors eye 183% gains as RBI announces premature redemption price for this SGB tranche
The RBI fixed the premature redemption price at ₹11,003 per gram. This price is determined based on the simple average of closing gold prices on September 12, 15, and 16, 2025, as published by the India Bullion and Jewellers Association (IBJA).
- Sep 17, 2025,
- Updated Sep 17, 2025 1:13 PM IST
The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series IV, originally issued on September 17, 2019. Investors holding this tranche will have the option to redeem their bonds early on September 17, 2025, after completing the required lock-in period of five years.
The SGB scheme was launched as an alternative to owning physical gold, offering safety, convenience, and assured returns linked to the market price of gold. The Series IV tranche of 2019-20 was open for subscription between September 9 and September 13, 2019, and the bonds were issued at a price of Rs 3,890 per gram.
SGBs carry a tenure of eight years, but as per RBI rules, investors are allowed to exit prematurely from the fifth year onward, only on interest payment dates. For Series IV, the next eligible redemption date falls on September 17, 2025.
Premature redemption price
In its official statement, the RBI fixed the premature redemption price at Rs 11,003 per gram. This price is determined based on the simple average of closing gold prices on September 12, 15, and 16, 2025, as published by the India Bullion and Jewellers Association (IBJA).
Issue Price (2019): Rs 3,890
Redemption Price (2025): Rs 11,003
Absolute Gain: Rs 7,113 per gram
Return: ~183% (excluding interest)
This means an investor who bought 10 grams worth of bonds in 2019 at ₹38,900 will receive ₹1,10,030 on redemption in 2025, apart from the annual interest payments already earned.
On September 11, the central bank set the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series-X at Rs 10,905 per gram, against its issue price of Rs 4,260 per gram in March 2020. This translates into an absolute return of 156%, excluding the fixed 2.5% annual interest that SGBs also offer. The redemption price is calculated using the simple average of closing gold prices (999 purity) from the India Bullion and Jewellers Association (IBJA) for the three business days preceding redemption. For this tranche, rates on September 8, 9, and 10 were considered.
Details | SGB 2019-20 Series IV | SGB 2019-20 Series X | (Sept 2019 issue) | (March 2020 issue) --------------------------------------------------------------- Issue Price | Rs 3,890 per gram | Rs 4,260 per gram Premature Redemption Price | Rs 11,003 per gram | Rs 10,905 per gram Redemption Date | Sept 17, 2025 | Sept 2025 Absolute Gain per Gram | Rs 7,113 | Rs 6,645 Return (Excl. Interest) | ~183% | ~156% Example (10 grams investment) | Rs 38,900 → Rs 1,10,030 | Rs 42,600 → Rs 1,09,050 Annual Interest | 2.5% p.a. on issue amt| 2.5% p.a. on issue amt Gold Price Basis (IBJA) | Sept 12, 15, 16, 2025 | Sept 8, 9, 10, 2025 ---------------------------------------------------------------
Interest income
In addition to price appreciation, SGB investors enjoy a fixed 2.5% interest per annum on their original investment. The interest is credited semi-annually to the investor’s bank account, and the final instalment is paid along with the redemption amount. When factored in, the overall returns are even higher than the 183% gain on capital alone.
Investor action plan
Investors who wish to redeem must take the following steps:
Verify the tranche: Confirm that their SGB holdings belong to the 2019-20 Series IV (issued September 17, 2019).
Submit redemption requests: Ensure the request is filed with the intermediary (bank, post office, or depository participant) within the notified timeline.
Why SGBs stand out
SGBs continue to be one of the most attractive ways to invest in gold:
No storage or security risks.
Guaranteed redemption linked to gold’s prevailing price.
No making charges or purity concerns, unlike jewellery.
Bonds are safely held in RBI records or demat accounts.
With the upcoming redemption promising 183% returns, SGBs once again highlight their value as a safe and rewarding investment avenue for Indian households.
The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2019-20 Series IV, originally issued on September 17, 2019. Investors holding this tranche will have the option to redeem their bonds early on September 17, 2025, after completing the required lock-in period of five years.
The SGB scheme was launched as an alternative to owning physical gold, offering safety, convenience, and assured returns linked to the market price of gold. The Series IV tranche of 2019-20 was open for subscription between September 9 and September 13, 2019, and the bonds were issued at a price of Rs 3,890 per gram.
SGBs carry a tenure of eight years, but as per RBI rules, investors are allowed to exit prematurely from the fifth year onward, only on interest payment dates. For Series IV, the next eligible redemption date falls on September 17, 2025.
Premature redemption price
In its official statement, the RBI fixed the premature redemption price at Rs 11,003 per gram. This price is determined based on the simple average of closing gold prices on September 12, 15, and 16, 2025, as published by the India Bullion and Jewellers Association (IBJA).
Issue Price (2019): Rs 3,890
Redemption Price (2025): Rs 11,003
Absolute Gain: Rs 7,113 per gram
Return: ~183% (excluding interest)
This means an investor who bought 10 grams worth of bonds in 2019 at ₹38,900 will receive ₹1,10,030 on redemption in 2025, apart from the annual interest payments already earned.
On September 11, the central bank set the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series-X at Rs 10,905 per gram, against its issue price of Rs 4,260 per gram in March 2020. This translates into an absolute return of 156%, excluding the fixed 2.5% annual interest that SGBs also offer. The redemption price is calculated using the simple average of closing gold prices (999 purity) from the India Bullion and Jewellers Association (IBJA) for the three business days preceding redemption. For this tranche, rates on September 8, 9, and 10 were considered.
Details | SGB 2019-20 Series IV | SGB 2019-20 Series X | (Sept 2019 issue) | (March 2020 issue) --------------------------------------------------------------- Issue Price | Rs 3,890 per gram | Rs 4,260 per gram Premature Redemption Price | Rs 11,003 per gram | Rs 10,905 per gram Redemption Date | Sept 17, 2025 | Sept 2025 Absolute Gain per Gram | Rs 7,113 | Rs 6,645 Return (Excl. Interest) | ~183% | ~156% Example (10 grams investment) | Rs 38,900 → Rs 1,10,030 | Rs 42,600 → Rs 1,09,050 Annual Interest | 2.5% p.a. on issue amt| 2.5% p.a. on issue amt Gold Price Basis (IBJA) | Sept 12, 15, 16, 2025 | Sept 8, 9, 10, 2025 ---------------------------------------------------------------
Interest income
In addition to price appreciation, SGB investors enjoy a fixed 2.5% interest per annum on their original investment. The interest is credited semi-annually to the investor’s bank account, and the final instalment is paid along with the redemption amount. When factored in, the overall returns are even higher than the 183% gain on capital alone.
Investor action plan
Investors who wish to redeem must take the following steps:
Verify the tranche: Confirm that their SGB holdings belong to the 2019-20 Series IV (issued September 17, 2019).
Submit redemption requests: Ensure the request is filed with the intermediary (bank, post office, or depository participant) within the notified timeline.
Why SGBs stand out
SGBs continue to be one of the most attractive ways to invest in gold:
No storage or security risks.
Guaranteed redemption linked to gold’s prevailing price.
No making charges or purity concerns, unlike jewellery.
Bonds are safely held in RBI records or demat accounts.
With the upcoming redemption promising 183% returns, SGBs once again highlight their value as a safe and rewarding investment avenue for Indian households.