Sovereign Gold Bonds Investors To Get 108% Return As RBI Announces Early Redemption For This SGB Series

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Posted by AI on 2025-09-06 08:51:58 | Last Updated by AI on 2025-09-06 11:32:03

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The Reserve Bank of India (RBI) announced today that it is permitting early redemption of Sovereign Gold Bonds (SGB) issued under the scheme, as per the terms of the issue.

The SGB scheme was originally issued in 2016, and the bonds are currently supposed to be matured on 8 August 2027. Today's announcement will see investors gaining a 108% return on their initial investment, as the bonds will be redeemed at a price of Rs 10,610 per unit. The bonds were originally issued at a price of Rs 5,117 per unit.

This unexpected news hit the markets with investors unsure of how this change will affect the gold market and economy. Investors and economists are awaiting further announcements to understand the timing of such a move, and whether it will signal a change in policy for the RBI and Indian government.

Currently, the gold bond scheme attracts investors by offering a 2.50% return p.a., which is higher than the interest rates offered by bank deposits or savings accounts. With an early redemption, investors will have their money back in hand, freely available for expenditure or reinvestment.

This move is a positive signal for investors and savers, and provides opportunities for further investment and growth, ultimately injecting more cash flow into the Indian economy.

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