SGB 2020-21 Series-IV: Rs 1 Lakh Investment Soars to Rs 2.9 Lakh on Premature Redemption

• RBI announces premature redemption price for Sovereign Gold Bonds (SGB) 2020-21 Series-IV, issued on July 14, 2020.
• Premature redemption is permitted after five years from issuance, despite an eight-year maturity period.
• The SGB 2020-21 Series-IV was issued at Rs 4,852 per gram (offline) and Rs 4,802 per gram (online with discount).
• The premature redemption price is fixed at Rs 13,929 per unit, based on gold prices from January 9, 12, and 13, 2026.
• Investors see an absolute gain of Rs 9,127 per unit, translating to a 190% return and a 266% growth on initial investment, excluding interest.

Why It Matters: SGB 2020-21 Series-IV investors see significant returns, with a Rs 1 lakh investment growing to Rs 2.9 lakh.