The Reserve Bank of India (RBI) has announced the final redemption of Sovereign Gold Bonds (SGBs) under the 2017-18 Series-X that is due on December 4, 2025. According to the information shared, the redemption price for final redemption due on December 04, 2025, has been fixed at Rs 12,820. This redemption price for the government-backed scheme is based on the simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption. According to the SGB scheme, the tenure of the gold bond is eight years. However, the bond may be redeemed early after the fifth year from the date of issue.
"Accordingly, the redemption price for final redemption due on December 04, 2025, shall be ₹12,820/- (Rupees Twelve Thousand Eight Hundred and Twenty only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., December 01, 2025, December 02, 2025, and December 03, 2025," the RBI said in a release.
SGB 2017-18 Series-X issue price
The RBI had made SGB 2017-18 Series-X available for subscription at an issue price of Rs 2,961 per gram without discount, as per a Ministry of Finance release as on November 24, 2017. The government, in consultation with the Reserve Bank of India, offered a discount of Rs 50 per gram to those who applied online and made the payment through digital mode. For such investors, the issue price was Rs 2,911.
Absolute return
The absolute return on this SGB investment comes to be Rs 12,820-Rs 2,911 = Rs 9,909 (without factoring in the interest).
In terms of percentage, this will come out to 9,909 ÷ 2,911 × 100 = 340.39 per cent.
How to redeem SGB investments?
The investor is informed one month before the maturity date of the gold bond series. When the maturity date arrives, maturity proceeds are credited to the bank account as per the details on record.
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