Overview

• Premature redemption is permitted on October 20, 2025 for the 2020–21 Series VII tranche issued on October 20, 2020, at a fixed price of Rs 12,792 per unit.
• The payout implies roughly a 153% gain over the Rs 5,051 issue price, excluding the 2.5% annual interest accrued during the holding period.
• RBI calculated the redemption price using the simple average of IBJA closing gold prices for October 15, 16, and 17, 2025.
• Under scheme rules, early redemption is allowed after five years and is executed on the interest payment date, with interest taxable and individual capital gains on redemption exempt.
• Context to recent returns: the 2017–18 Series III matured with a final price of Rs 12,567 per gram, delivering about a 338% absolute gain, while new SGB issuances were discontinued in October 2023.