
99.67% return on Sovereign Gold Bonds: RBI announces redemption price of this SGB
How is SGB redemption price calculated?
Academy
Empower your mind, elevate your skills
What is the redemption price of SGB 2020-21 Series-IV
Interest payment on SGB
What are Sovereign Gold Bonds (SGBs)?
When will the customers be issued a holding certificate?
The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as account number, email IDs, then the investor must inform the bank/SHCIL/PO promptly.
Can I encash the bond at any time? Is premature redemption allowed?
What do I have to do if I want to exit my SGB investment?
Can I gift the bonds to a relative or friend on some occasion?
The Reserve Bank of India (RBI) has announced the premature redemption price for Sovereign Gold Bonds (SGB) Series-IV. The SGB is due on Monday, July 14, 2025, for premature redemption. The maturity of the gold bonds happens 8 years from the date of issuance, and premature redemption of SGBs is permitted only after the completion of the fifth year from the date of issue.According to an RBI press release dated July 11, 2025, "The redemption price of SGB shall be based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA)."The redemption price for premature redemption due on July 14, 2025, will be Rs 9,688 per unit of SGB based on the simple average of the closing gold price for the three business days i.e., July 09, July 10 and July 11, 2025.Returns SGB holders will earn if they opt for premature redemptionThe SGB 2020-21 Series-IV, issued at Rs 4,852 per gram in July 2020. So, the absolute return comes to Rs 9,688 - Rs 4852 = Rs 4,836 (without factoring in the interest). In percentage terms, it comes to Rs {(4836/4852*100} %= 99.67%The gold bonds offer an interest rate of 2.50% (fixed rate) per annum on the initial investment amount. Interest will be credited semi-annually to the investor's bank account, and the last interest payment will be made on maturity, along with the principal.SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors must pay the issue price in cash, and the bonds will be redeemed in cash upon maturity. The Reserve Bank of India issues the bond on behalf of the Government of India.The customers will be issued a Certificate of Holding on the date of issuance of the SGB. A Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents or obtained directly from the RBI by email, provided the email address is included in the application form.What are the procedures involved during premature redemption?Although the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after the fifth year from the date of issue on coupon payment dates. The bond will be tradable on exchanges if held in demat form. It can also be transferred to any other eligible investor.In case of premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent thirty days before the coupon payment date. Request for premature redemption can only be entertained if the investor approaches the concerned bank/post office at least one day before the coupon payment date. The proceeds will be credited to the customer's bank account provided at the time of applying for the bond.The bond can be gifted/transferable to a relative/friend/anybody who fulfils the eligibility criteria. The bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)

Business Standard
23 minutes ago
- Business Standard
Lohia Worldspace to launch ₹200 cr luxury villa project in UP's Moradabad
Realty firm Lohia Worldspace will invest about Rs 200 crore to develop a 10-acre housing project in Moradabad, Uttar Pradesh, marking its entry into real estate business. This will be the company's first real estate project, comprising 175 luxury villas. Lohia Worldspace is the real estate arm of the diversified Delhi-based Lohia Global, a privately held company with an annual revenue of around Rs 1,200 crore. Established in 1979, the Group has four businesses - handicraft exports, electric vehicles, tiles and solar energy. Now, it has entered into real estate business to monetise its land bank of around 200 acres across various cities in North India. "Our vision with Lohia Worldspace is to create homes that are modern, meaningful, and rooted in thoughtful design," said Pyush Lohia, Director, Lohia Worldspace. The project cost is estimated at Rs 200 crore and expected to be delivered by 2029. Pyush said there is a huge demand for premium homes in Moradabad market. Last year, Lohia Global announced its entry into real estate and said it would invest Rs 1,000 crore over the next five years to develop real estate projects across India. These projects will primarily be located on premium land parcels already owned by the group. "Moradabad isn't just where we begin. It's where our roots are. We are proud to invest in the city's future by offering something that uplifts its people, infrastructure, and aspirations," said Pyush. He said the company would launch more projects in Moradabad in coming years and also enter Delhi property market.


Time of India
36 minutes ago
- Time of India
Gang busted for Rs 50 lakh loan fraud using forged salary slips; 2 held in Indore
INDORE: Vijay Nagar police busted a gang involved in large-scale loan fraud using forged salary slips of a reputed company and arrested two men in this connection on Saturday. 'The accused were operating a sophisticated scam by exploiting loopholes in the banking system and presenting themselves as salaried employees of Blue Star Company to secure personal and vehicle loans worth several lakhs from multiple banks,' said ACP Aditya Patle. 'The fraud came to light following a complaint from HDFC Bank, which reported suspicious documents submitted during a loan application. The documents included fake salary slips and account statements showing regular salary credits from Blue Star Company,' he said. During the investigation, it was found that the accused had opened a current account in the name of Blue Star using forged GST and business registration documents under the name of an AC technician associated with the company. They regularly transferred fixed amounts from this fake company account to their own and their associates' accounts, portraying them as monthly salaries. The arrested accused have been identified as Ravi Kumar Pal (32), a resident of Sadar Pur, Noida, and Devendra Singh (30), a resident of Aanshal Town, Meerut. Both confessed during interrogation to having obtained documents like Aadhaar and PAN cards in fabricated names. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why seniors are rushing to get this Internet box – here's why! Techno Mag Learn More Undo 'Devendra, for instance, opened a private bank account in the name of a fictitious person, Dev Sharma, and used that to secure an Rs 11 lakh loan from another private bank by showing fake salary credits,' he said. 'Ravi Pal used similar tactics by manipulating Aadhaar-linked mobile numbers. He convinced an acquaintance, Shailesh Ahirwar, to link his (Ravi's) number to Shailesh's Aadhaar card. Later, he used OTPs to update Shailesh's address to Indore and created a fake PAN card in Shailesh's name with his own photograph. Using this identity, he opened a bank account, produced forged salary slips, and secured another Rs 11 lakh loan from a private bank,' he said. The accused are believed to have previously defrauded several banks of nearly Rs 50 lakh. Encouraged by past success, they attempted another loan using similar methods when HDFC's internal verification raised suspicion, prompting a police complaint. Both accused have been produced before court and are currently in police custody for further interrogation. Investigators are now probing the extent of the scam and identifying other possible accomplices.


Time of India
42 minutes ago
- Time of India
No more shortcuts! Roads ministry tightens stricter rules for highway projects; aims to ensure quality, speed
NEW DELHI: The ministry of roads has implemented stricter qualification requirements for bidding on road projects under hybrid annuity model (HAM) and engineering, construction and procurement (EPC) mode. These enhanced criteria aim to ensure superior construction quality of highways and expressways whilst securing timely project completion. The revised guidelines, detailed in a circular from the ministry of road transport and highways, specify higher financial prerequisites for bidders, enhanced scrutiny of sub-contracting experience, and revised definitions for highways and core sector projects. The modifications arrive as the government prepares to allocate 124 road projects for 2025-26, valued at Rs 3.5 lakh crore, with HAM accounting for over 80 projects. For HAM projects, the financial capacity requirement has increased to 20% from 15% of estimated project cost, whilst consortium member net worth requirements have risen to 10% from 7.5%. "This will ensure large companies with deep pockets bid for projects and deliver quality construction within the set timelines," ET reported, quoting an industry executive. Regarding EPC projects, bidder net worth requirements have doubled to 10%, whilst annual turnover prerequisites have increased to 20% of estimated project cost. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Поза во сне может многое рассказать о вашем характере! Удивительные Новости Undo The updated highways definition excludes railways, metro rail and ports, which now fall under the core sector classification for both HAM and EPC projects. The government is re-evaluating eligibility norms for highway and infrastructure projects after a high number of delays caused by earlier relaxed financial thresholds. These lower thresholds were introduced to allow smaller contractors to participate, but many lacked the financial strength and capacity to deliver on time. According to CareEdge Ratings, 55% of the 374 hybrid annuity model (HAM) projects awarded between 2015 and 2024 were delayed by more than six months. Earlier in Parliament, union road transport minister Nitin Gadkari stated that as of March 2024, 419 out of 952 ongoing road projects, about 44% were running behind schedule due to various factors including financial constraints and delays in clearances. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now