10:45 AM, Time – The Reserve Bank of India (RBI) has issued a new press release alert for gold investors holding the Sovereign Gold Bond (SGB) 2020-21 Series-VIII.
After five years, this tranche is now open for early redemption. The official payout has been fixed at ₹12,476 per gram for the early exit window on November 18, 2025.
Unlike buying physical gold, where you worry about making charges, purity and how to store it safely, SGBs give you a simple and government-safety way to invest in gold. You also earn fixed interest, and if you hold it for 8 years. Also, the redemption is tax-free.
Back in 2020, as per the PIB press release, the issue price for this SGB series was ₹5,051 per gram, and ₹5,001 for people who paid digitally. With the new RBI redemption value, investors are getting a gain of around 147% to 149%, excluding the yearly interest they already received.
What the RBI Announced Today
RBI said that all investors of this SGB tranche can choose to redeem their units on 18 November 2025, which is also their next interest credit date.
The redemption value of ₹12,476 comes from the average gold price recorded on November 13, 14 and 17, based on IBJA’s official rate.
The amount will be credited directly to the linked bank account. Investors do not need to apply separately.
SGB 2020 Series-VIII: Quick Snapshot
| Particular | Value |
|---|---|
| Issue Year | 2020-21 |
| Series | VIII |
| Issue Price | ₹5,051 (₹5,001 online) |
| Early Exit Date | 18 November 2025 |
| RBI Payout | ₹12,476 per gram |
| Total Gain | 147% – 149% |
| Annual Interest | 2.5% (paid separately) |
How Much Profit Do Investors Get?
If you bought at the regular price of ₹5,051, your profit is:
₹12,476 – ₹5,051 = ₹7,425 (about 147% growth)
If you bought using digital payment at ₹5,001, your profit becomes:
₹12,476 – ₹5,001 = ₹7,475 (about 149% growth)
These returns come only from the rise in gold price.
The 2.5% yearly interest earned over the last five years is extra income.
Should You Exit Now?
An early exit may make sense if:
- You need funds right away
- You want to secure your gains at today’s gold price
- You prefer a shorter 5-year holding period
Staying till the full 8-year maturity gives the benefit of zero tax on capital gains, which is not available in early redemption.
Why This Update Is Important
This announcement affects thousands of Indian families who invested in this SGB series during 2020. Since the redemption price is based on official IBJA data, it reflects the most reliable gold value for the day. It also shows how SGBs continue to deliver strong returns without the hassles of buying physical gold.
Final Note
Your bank or Demat-linked account will receive the payout on or after November 18. Make sure your bank account details are updated for any last-minute issues, it may cause a delay for you.
Disclaimer: This article is for awareness only. Please make decisions based on your personal financial needs.
