Now Reading: RBI sets SGB 2020-21 Series XI premature redemption at Rs 14,564
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RBI sets SGB 2020-21 Series XI premature redemption at Rs 14,564
The Reserve Bank of India has fixed the premature redemption price for Sovereign Gold Bond 2020-21 Series XI at Rs 14,564 per unit. Redemption will be available on August 7, 2026, as…
The Story in Brief
The Reserve Bank of India has fixed the premature redemption price for Sovereign Gold Bond 2020-21 Series XI at Rs 14,564 per unit. Redemption will be available on August 7, 2026, as August 8 and 9 are holidays. The bonds were issued on February 9, 2021, and become eligible after five years on an interest payment date.
The price is based on the simple average of 999-purity gold’s closing prices on August 4, 5 and 6, as published by the India Bullion and Jewellers Association. The Economic Times calculates a return of nearly 200% against the online issue price of Rs 4,862, excluding interest. Its reference to a 2019 investment date differs from the RBI’s 2021 issue date.
The Indian Opinion
Claims that this is a guaranteed threefold gain simplify the picture. The return depends on the purchase price, gold prices and the timing of redemption, while the calculation excludes the bond’s 2.5% annual interest. The Economic Times also dates the investment to 2019, but the RBI notice records issuance in February 2021. Investors should check their allotment price and account for tax before judging the final gain.
Sources (2): rbi.org.in, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
