SGB Investors Reap 315% Return as RBI Announces Early Redemption for 2019-20 Series-II

• RBI announced premature redemption for Sovereign Gold Bonds (SGBs) 2019-20 Series-II, issued on July 16, 2019.
• Redemption price fixed at Rs 14,092 per unit for January 16, 2026, yielding a 309.29% gain over the issue price of Rs 3,443.
• With a Rs 50 online payment discount, the gain reaches 315.32% based on an issue price of Rs 3,393.
• Premature redemption is permitted after the fifth year from issue date, on an interest payment date, as per SGB scheme rules.
• Interest on SGBs is taxable, but capital gains on redemption for individuals are exempt; indexation benefits apply to long-term capital gains on transfer.

Why It Matters: SGB investors from the 2019-20 Series-II are set to receive over 300% returns on early redemption.