SGB 2019-20 Series-X Eligible for Early Redemption from September 11: Returns of Over 155%

Investors holding the Sovereign Gold Bond (SGB) 2019-20 Series-X are eligible for premature redemption starting Thursday, September 11, 2025, the first such opportunity available after completing 5 years from the bond’s issuance.

Impressive Returns: Over 155% Gain

Launched on March 11, 2020, at a price of ₹4,260 per gram, the bond is now redeemable at ₹10,905 per unit. This redemption price is determined based on the simple average of gold prices over the last three business days ending September 10, 2025, as published by the India Bullion and Jewellers Association Ltd (IBJA).

This represents a gain of more than 155% on the principal amount, excluding the additional interest earned under the scheme.

Redemption Options and Continued Holding

As per the SGB scheme rules, early redemption is permitted after 5 years, but only on dates when interest is paid. Investors who opt not to redeem on this date can continue holding the bond until its eight-year maturity, continuing to earn 2.5% annual interest, paid semi-annually.

Redemption can be processed through the bank or depository account where the bond is held, with proceeds credited directly to the investor’s linked account.

Also Read: ITR Filing FY25: Should You Report Sovereign Gold Bond Redemption Proceeds in ITR?

Scheme Performance Since Launch

The SGB scheme, launched in 2015, aims to curb the demand for physical gold and shift investment toward financial gold instruments. According to Minister of State for Finance Pankaj Chaudhary, the government has raised approximately ₹72,275 crore through 67 tranches, mobilising around 146.96 tonnes of gold as of March 31, 2025. Of this total, investors have redeemed about 18.81 tonnes as of June 15, 2025.

Minister Chaudhary also noted that global geopolitical tensions have caused a sharp increase in gold prices, which has in turn raised the government’s borrowing costs through SGBs. As a result, the introduction of new tranches under the scheme will be considered only after a thorough review of cost implications, as part of the government’s broader debt management strategy, which also includes treasury bills and government securities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.