The Reserve Bank of India (RBI) has announced the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-I date October 28, 2020, according to a Moneycontrol report.

According to an official statement by the RBI, investors will receive the option to redeem the SGB tranche prematurely from October 28, 2025.

Additionally, a statement by the Central bank has clarified that the premature redemption of the SGB series will be permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable.

The statement further added that the redemption price will be calculated using the simple average closing price of gold (999 purity) based on data from the India Bullion and Jewellers Association (IBJA).

The Reserve Bank of India has announced that the premature redemption price for the Sovereign Gold Bond (SGB) 2020-21 Series-I, due on October 28, 2025, will be ₹12,198 per unit.

This price is based on the simple average of gold’s closing prices over three business days — October 23, 24, and 27, 2025.

When this series was first issued, investors who applied online paid ₹4,589 per gram, while those who bought offline paid ₹4,639 per gram.

At the current redemption value, the bonds will deliver an impressive absolute return of nearly 166 per cent for online investors. In rupee terms, the gain works out to ₹7,609 per gram (₹12,198 - ₹4,589) — and that’s without even including the annual interest these bonds earned over the years.

The SGB Scheme was introduced by the Indian government in November, 2025 as an alternative to attract gold ownership. The bonds were issued by the RBI for and on behalf of the Centre.