SGB 2020-21 Series-IX Investors Reap Massive Gains on Early Exit

• RBI announced premature redemption for Sovereign Gold Bond (SGB) 2020-21 Series-IX, issued on January 5, 2021, now eligible for early exit after five years.
• The redemption price is fixed at Rs 13,381 per unit, calculated based on the average gold price of the last three business days.
• Investors achieved significant returns: an absolute gain of Rs 8,204 (offline) to Rs 8,254 (online) per unit.
• Percentage-wise, investors saw approximately 158% to 161% price appreciation, plus an additional 2.5% annual interest.
• SGBs allow premature exit after 5 years on interest payment dates, with capital gains on redemption exempt from tax for individuals.

Why It Matters: SGB 2020-21 Series-IX investors secured substantial returns, highlighting the scheme's dual benefits.