SGB 2019–20 Series II Opens for Premature Redemption: Investors See Over 4x Returns

• Sovereign Gold Bond (SGB) 2019–20 Series II is now open for premature redemption, completing five years from its issue date.
• The Reserve Bank of India (RBI) has set the premature redemption price at Rs 14,092 per unit, a significant increase from the issue price of Rs 3,393 per unit.
• Investors have gained over 315% capital appreciation from gold price movement alone, plus an annual 2.5% interest paid semi-annually.
• An investment of Rs 1 lakh at issuance would yield over Rs 4.1 lakh on premature redemption, excluding interest income.
• Premature redemption is allowed after the fifth year on interest payment dates and must be initiated through the investor's bank, post office, or agent.

Why It Matters: SGB 2019–20 Series II investors can redeem early, realizing over 4x returns and significant capital appreciation.