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The RBI set the final redemption price for the Sovereign Gold Bond 2017-18 Series II at Rs 9,924 per gram, maturing on July 28, 2025, offering a return of 250.67%.
While the bond tenure is 8 years, investors can choose to redeem their bonds prematurely after 5 years from the issue date on any coupon payment date.
SGB 2017-18 Series II: The Reserve Bank of India (RBI) has declared the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series II, which is due for maturity on Monday, July 28, 2025. This tranche of the gold bond was originally issued in July 2017 and carries an 8-year maturity period.
As per the RBI press release dated July 25, 2025, the final redemption price has been fixed at Rs 9,924 per gram, calculated based on the simple average of closing gold prices between July 21 and 25, 2025.
The original issue price for the bond in 2017 was Rs 2,830 per gram, with online investors receiving a discount of Rs 50. Ignoring interest payouts, this gives investors an absolute return of Rs 7,094 per gram over the 8-year period.
In percentage terms, the return amounts to 250.67%, excluding the semi-annual interest of 2.5% per annum offered under the scheme.
What Are Sovereign Gold Bonds (SGBs)?
SGBs are government securities denominated in grams of gold and act as a substitute for physical gold. Investors pay the issue price in cash and receive the redemption amount in cash. These bonds are issued by the RBI on behalf of the Government of India.
Frequently Asked Questions (FAQs) on Sovereign Gold Bonds
Can I redeem my gold bond anytime?
No. While the bond has an 8-year maturity, early redemption is allowed only after 5 years from the issue date and only on coupon payment dates. The bonds are tradable on stock exchanges if held in demat form and can be transferred to eligible investors.
How can I exit my SGB investment prematurely?
Investors who wish to redeem early must approach the bank, SHCIL, Post Office, or agent 30 days before the coupon payment date. The request must be submitted at least one day prior to the coupon date. Proceeds will be credited to the investor’s bank account registered at the time of bond purchase.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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