The Reserve Bank of India (RBI) has announced the final redemption price and date of Sovereign Gold Bonds (SGBs) under the 2017-18 Series IV. According to a notification issued by the RBI, the final redemption date for this tranche has been set for October 23, 2025. The price for final redemption has been fixed at Rs 12,704 per unit of SGB.
SGB redemption price calculation
The SGB redemption price is calculated based on the simple average of the closing price of gold of 999 purity from three business days prior, as published by the India Bullion and Jewellers Association (IBJA), from the date of redemption. In this case, the closing prices of gold for October 17, 2025, October 20, 2025, and October 22, 2025 have been taken into consideration.
SGB 2017-18 Series IV issuance price
The bond was issued on October 23, 2017, at a price of Rs 2,987 per gram. As the RBI has fixed Rs 12,704 as the maturity payout, the total gain for an investor comes out to be Rs 9,717. This amount be even more for those investors who applied online and made the payment through the digital mode. For such investors, the issue price of the SGB stood at Rs 2,937 per gram of gold.
325% Absolute Return
Even if we consider the absolute return of Rs 9,717, it represents a return of 325 per cent. It should be noted that it excludes the additional annual interest of 2.5 per cent that SGB holders have been receiving semi-annually during the tenure.
Benefits of SGBs
Sovereign Gold Bonds are automatically credited to the bank account of an investor upon maturity. Moreover, any capital gains tax arising on the redemption of these bonds by an individual is exempted.
Also, gold bonds issued by the RBI can be used as collateral security for availing any loan.
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