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Investors in the Sovereign Gold Bond (SGB) 2019-20 Series-III are set to receive ₹9,991 per unit on Thursday (August 14), marking a gain of around 185% over the issue price of ₹3,499 per gram — excluding the annual interest payout of 2.5%.
The Reserve Bank of India (RBI) had announced the redemption price in advance on August 13. The payment will be credited today to eligible investors who had opted for premature redemption.
Those who did not apply will need to wait for the next interest payment date.
Under SGB rules, premature redemption is allowed only after the fifth year from the date of issue and on an interest payment date. This tranche was originally issued on August 14, 2019.
The redemption price has been determined based on the
simple average of closing gold prices of 999 purity for the previous three business days — August 11, 12, and 13, 2025 — as published by the India Bullion and Jewellers Association Ltd (IBJA).
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 by investors as of June 15, 2025.
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.
The Reserve Bank of India (RBI) had announced the redemption price in advance on August 13. The payment will be credited today to eligible investors who had opted for premature redemption.
Those who did not apply will need to wait for the next interest payment date.
Under SGB rules, premature redemption is allowed only after the fifth year from the date of issue and on an interest payment date. This tranche was originally issued on August 14, 2019.
The redemption price has been determined based on the
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 by investors as of June 15, 2025.
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.
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