Premature Redemption of Sovereign Gold Bonds (SGB): Key Details for February 2025

The Reserve Bank of India (RBI) has announced details for the premature redemption of Sovereign Gold Bonds (SGB) under the 2019-20 Series IX. Investors holding these bonds will have the option to redeem them on February 11, 2025, marking the first eligible early exit date for this tranche.

Eligibility for Premature Redemption

SGBs come with an 8-year tenure; however, early redemption is permitted after the fifth year, but only on interest payment dates. For the SGB 2019-20 Series IX, which was issued on 11 February 2020, the first opportunity for early redemption falls on February 11, 2025.

Redemption Price Calculation

The redemption price of the Sovereign Gold Bonds is based on the simple average of the closing gold price (999 purity) for the three business days prior to the redemption date. The price is determined using rates published by the India Bullion and Jewellers Association Ltd (IBJA).

For the February 11,  2025 redemption, the price per unit is set at ₹8,499, calculated from gold prices recorded on February 6, 7, and 10, 2025.

Key Takeaways for Investors

• First opportunity for early exit: February 11, 2025.
• Redemption price per unit: ₹8,499.
• Price basis: 3-day average of IBJA’s gold price (999 purity).
• Next redemption window: The next interest payment date after February 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.