The Reserve Bank of India has announced that investors can redeem their Sovereign Gold Bonds (SGB) 2020-21 Series-VII prematurely on April 20, 2026. The redemption price is set at ₹15,254 per unit, based on the average closing price of gold over the previous three business days. This price reflects a significant gain for investors, with an increase of over 202% from the initial purchase price of ₹5,051 per unit. For those who purchased the bonds online, the effective gain rises to 205% due to a ₹50 discount at issuance. Additionally, investors have earned 2.5% annual interest during the holding period. The SGB scheme, which allows for capital appreciation without the costs associated with physical gold, is currently paused for new tranches for FY 2026-27 due to high borrowing concerns. Tax implications vary, with capital gains exempt for original subscribers who hold until maturity, while gains from SGBs held for less than 12 months are taxed at applicable income tax slab rates.