On an annualised basis, this translates to approximately 18.6% per year.
The redemption price has been fixed at ₹11,003 per unit, based on the simple average of the closing gold prices for the three preceding business days—September 12, 15, and 16, 2025—as published by the India Bullion and Jewellers Association Ltd (IBJA).
Issued on September 17, 2019, SGB 2019-20 Series-IV allows premature redemption only after the fifth year from the issue date, coinciding with interest payment dates.
The option provides investors the chance to exit before maturity while earning returns linked to gold prices, in addition to the fixed interest under the SGB scheme.
Redemption can be done through the bank or depository account where the bonds are held, with proceeds credited directly to investors.
The government launched the SGB scheme in 2015 to reduce demand for physical gold. According to Minister of State for Finance Pankaj Chaudhary, the scheme mobilised about 146.96 tonnes of gold worth around ₹72,275 crore through 67 tranches till March 31, 2025. Of this, 18.81 tonnes have been redeemed by investors as of June 15, 2025.
Chaudhary noted that global geopolitical tensions have pushed gold prices sharply higher, raising the government’s borrowing costs through SGBs. He said new tranches of the scheme will be considered only after reviewing cost implications, as part of broader debt management efforts that also include government securities and treasury bills.
