How is SGB redemption price calculated?
The redemption value is calculated based on the simple average closing price of 999 purity gold published by the India Bullion and Jewellers Association (IBJA) for the preceding three working days, as per an RBI rule.
Gold prices today: Check 22k, 24k gold rates on April 30, 2026, at Malabar Gold undefined Are gold rates up or down?
What is the premature redemption price for SGB 2019-20 Series-VI?
The premature redemption price for the SGB series due on April 30, 2026, has been fixed at Rs 14,931 per unit of SGB, based on the simple average of the closing price of gold for the last three business days, i.e., April 27, April 28, and April 29, 2026.
The SGB 2019-20 Series-VI was issued at Rs 3,785 per gram for online buyers. It will yield an absolute simple return of nearly 295% on the date of premature redemption.
The absolute return comes to be Rs 14,931 -Rs 3,785 = Rs 11,146 (without factoring in the interest). In percentage terms, it is 11,146÷ 3,785 ×100 = 294.5%.
So, the current value of Rs 1 lakh investment in the SGB at the time of its launch will be = Rs 1,00,000 + Rs 2,95,000 = Rs 3,95,000 (approximately).
In short, the investment becomes around Rs 3.95 lakh.
Important FAQs on SGBs as per the RBI website
What is a Sovereign Gold Bond (SGB)? Who is the issuer?
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The bond is issued by the Reserve Bank of India (RBI) on behalf of the Government of India.
What are the minimum and maximum limits for SGB investment?
Sovereign gold bonds are issued in denominations of one gram of gold and in multiples thereof. The minimum investment in the bonds allowed is one gram of gold, while the maximum limit is 4 kg gold for individuals. For Hindu Undivided Family (HUF), the maximum limit is 4kg of gold, while it is 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March). In case of joint holding, the limit applies to the first applicant.
What is the rate of interest SGBs provide to their investors and how is it paid?
The bonds bear interest at the rate of 2.50% (fixed rate) per annum on the amount of the initial investment. Interest is credited semi-annually to the bank account of an investor and the last interest is payable on maturity along with the principal.
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