The Sovereign Gold Bond (SGB) 2020-21 Series VI, issued on September 8, 2020, at ₹5,117 per gram, has delivered decent returns for investors. The Reserve Bank of India (RBI) set the premature redemption price at ₹10,610 per unit for
this tranche, based on the average gold price of 999 purity for September 3–5, 2025, as published by the India Bullion and Jewellers Association (IBJA).
This means investors who exited during the redemption window on September 6, 2025 (September 7 and 8 being holidays), effectively doubled their investment in five years.
In addition to this price appreciation, holders also earned an annual interest of 2.5% on their investment during the holding period.
However, as of Monday (September 8), the exit window
for premature redemption has already passed. Investors who did not exercise the option will now need to hold the bonds until the next eligible redemption date linked to future interest payouts, or until maturity at eight years from the issue date.
The redemption proceeds, when exercised, are directly credited to the investor’s registered bank account. Investors should keep their bank and demat details updated with their depository or agent to avoid delays.
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.
