SGB 2019-20 Series VI: Exit Now or Wait 5 Years?

RBI has set ₹14,213 per unit as the premature redemption price for Sovereign Gold Bond 2019-20 Series VI. Investors who bought at roughly ₹3,800 can now exit with over 270% gains, tax-free — but missing this window means waiting till full maturity.

Here's what happened: RBI has fixed the premature redemption price for Sovereign Gold Bond 2019-20 Series VI at ₹14,213 per unit, reflecting current gold prices.. Investors who purchased this series at the original issue price of approximately ₹3,795 per gram are sitting on absolute gains exceeding 270% on the principal alone.. Premature redemption of SGBs is permitted only on designated interest payment dates after the 5th year — this window is one of the few valid exit opportunities before the full 8-year maturity..

What you should do: Log into your demat account, bank net banking, or RBI Retail Direct portal today and check whether you hold SGB 2019-20 Series VI units.. Submit your premature redemption request before the window closes — contact your bank branch, broker, or depository participant and confirm the exact last date for this tranche.. Calculate your post-tax position before deciding: SGB gains on RBI redemption are fully exempt from capital gains tax, making this one of the cleanest exits in Indian investing..

The 2.5% annual interest SGBs pay every six months is taxable as 'other income' — but the capital gain on redemption through RBI is completely tax-free, unlike selling SGBs on the stock exchange.

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