SGB 2019-20 Series III: Your ₹1L is Now ₹4.44L

RBI has fixed the redemption price for Sovereign Gold Bond 2019-20 Series III at ₹15,310 per unit. Investors who bought at ₹3,449 have earned a 344% absolute return — and the interest income is completely tax-free.

Here's what happened: RBI fixed the premature redemption price for SGB 2019-20 Series III at ₹15,310 per unit, with the redemption window opening August 14, 2026.. The bonds were originally issued at ₹3,449 per unit in 2019, meaning investors have earned an absolute return of approximately 344% on their investment.. A ₹1 lakh investment at the issue price — roughly 29 units — is now worth approximately ₹4.44 lakh at the RBI-fixed redemption price..

What you should do: Check your demat account or RBI Retail Direct portal right now to confirm if you hold SGB 2019-20 Series III units and how many.. Compare your redemption options: premature exit at today's ₹15,310 price vs. holding to full 8-year maturity — both routes are capital-gains tax-free.. If you don't hold SGBs yet, track RBI's next SGB issuance calendar and apply early — new series are released in tranches throughout the year..

Premature SGB redemption after the 5-year lock-in is fully exempt from capital gains tax — the same benefit as holding to maturity. Most investors don't know this.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.