RBI SGB Redemption Price: The Reserve Bank of India has fixed the premature redemption price for SGB 2020-21 Series-III. Investors in this tranche can redeem it early from June 16, 2026. The price has been set at ₹14,774 per gram. RBI uses the usual method for SGB redemption, which is the simple average of the closing price of 999 purity gold for the last 3 working days before the redemption date, based on IBJA rates. The bond itself was issued on June 16, 2020, and this series was part of the 2020-21 SGB calendar.
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This bond could be bought at ₹4,627 per gram for online buyers and ₹4,677 per gram for offline buyers. The scheme also gives 2.50% interest a year, paid twice a year. RBI rules say SGBs run for 8 years, but investors can exit after the 5th year on the interest payment date.
How much Money did it make?
The gain is very big. If an investor bought this bond at the online issue price of ₹4,627 and is redeeming now at ₹14,774, the profit comes to ₹10,147 per gram before counting interest. The return works out to 219.30%. In simple words, money more than tripled in this period. A ₹1 lakh investment would now be worth about ₹3.19 lakh, again before adding the semi-annual interest paid along the way.
Tax Rule change from April 1, 2026
The tax side has also changed. The Union Budget 2026 says the capital gains tax exemption on SGB redemption will now be available only when the bond was bought at the original issue and held continuously by that same investor until maturity. The Finance Bill says this change takes effect from April 1, 2026 and applies to all SGB issuances by RBI. That means the old tax-free benefit is now limited much more tightly.
RBI’s older scheme notes had said that interest on SGBs is taxable, while capital gains tax on redemption to an individual had been exempted. The new budget rule narrows that benefit, so investors need to check whether their holding still fits the updated conditions before assuming tax-free treatment.
