RBI Fixes SGB 2021-22 Series I Premature Redemption Price at ₹15,840; Investors Gain Over 235%

Important news has emerged for gold investors. The Reserve Bank of India (RBI) has fixed the premature redemption price for the Sovereign Gold Bond (SGB) 2021–22 Series I at ₹15,840 per unit, effective from May 25, 2026.

At this redemption price, investors are set to earn an impressive return of around 235%, based purely on the rise in gold prices. This does not include the 2.5% annual interest paid on the bonds, which makes the total return even higher. This once again highlights Sovereign Gold Bonds as a strong long-term investment option.

According to the RBI, the redemption price has been calculated based on the simple average closing price of 999 purity gold over the previous three trading days.

Investors are allowed to redeem Sovereign Gold Bonds prematurely after completing five years from the date of issue. However, redemption is permitted only on the scheduled interest payment dates.

Investors who purchased SGB 2021–22 Series I online had bought the bonds at ₹4,727 per gram, while offline investors purchased them at ₹4,777 per gram. With the redemption price now fixed at ₹15,840, online investors are earning a gain of ₹11,113 per gram, delivering returns of approximately 235.1%.

For example, an investment of ₹1 lakh made in these bonds at the time of issue would now be worth nearly ₹3.35 lakh, excluding interest income. This clearly shows the strong returns Sovereign Gold Bonds have delivered over the long term.

Meanwhile, investors should also note recent changes in tax rules related to Sovereign Gold Bonds. Under the new regulations effective from April 1, 2026, capital gains tax will apply if the bonds are redeemed before maturity.

Tax exemption will continue only for original investors who hold the bonds until the full 8-year maturity period. Investors who bought SGBs through the secondary market will not be eligible for tax exemption, even if they hold the bonds until maturity.

Overall, Sovereign Gold Bonds continue to remain an attractive investment option, especially for long-term investors seeking exposure to gold along with fixed annual interest.