Those who subscribed to the 2019-20 Series-IX, issued on February 11, 2020 at ₹4,070 per gram, stand to make a gain of ₹6,000 per gram—an increase of about 147%—excluding the annual interest of 2.5% that SGBs offer.
Investors in the 2020-21 Series-V, issued on August 11, 2020 at ₹5,334 per gram, would see gains of ₹4,736 per gram,
Under government rules, premature redemption of SGBs is allowed after the fifth year from the date of issue, on an interest payment date.
Both series have now reached this eligibility milestone.
The government launched the SGB scheme in 2015 to reduce demand for physical gold. According to Minister of State for Finance Pankaj Chaudhary,the scheme mobilised about 146.96 tonnes of gold worth around ₹72,275 crore through 67 tranches till March 31, 2025. Of this, 18.81 tonnes have been redeemed
Chaudhary noted that global geopolitical tensions have pushed gold prices sharply higher, raising the government’s borrowing costs through SGBs. He said new tranches of the scheme will be considered only after reviewing cost implications, as part of broader debt management efforts that also include government securities and treasury bills.
