Sovereign Gold Bonds: RBI Announces Early Redemption For Another SGB Series; Investors To Get 156% Return

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Posted by AI on 2025-09-11 08:13:01 | Last Updated by AI on 2025-09-11 11:13:23

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In a welcome development for investors, the Reserve Bank of India (RBI) has announced the early redemption of another series of sovereign gold bonds (SGBs). The seventh series of SGBs, which were issued in 2016, will be redeemed today, September 11, at a price of Rs 10,905 per unit, according to the RBI's statement on its website.

This represents a 155.99% gain over the issue price of Rs 4,260, promising substantial returns for investors who chose to participate in this series. The RBI has attributed the decision to the development of a secondary market for SGBs, which has enhanced the liquidity in SGBs.

It's worth noting that last month, the central bank had announced the early redemption of the sixth series of SGBs, which was issued in 2015. The development has undoubtedly eased the hardships of bondholders who are facing issues with their liquidity.

The announcement also builds on the success of SGBs, which have been a popular investment option in India. Since the inception of the program in November 2015, the RBI has issued seven series of SGBs. Investors have repeatedly showed interest in SGBs due to their numerous advantages, including a tax benefit and no risk of theft or storage charges.

With the latest decision, the RBI has provided a boost to investor confidence and paved the way for the successful closure of the seventh series of SGBs. It remains to be seen what developments unfold in the coming months, but investors are surely poised to reap lucrative gains from their SGB investments.

Ultimately, the latest development underscores the RBI's efforts to enhance liquidity and provide profitable opportunities within the investment landscape, thereby fostering a more robust and dynamic economy.

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