Sovereign Gold Bonds Investors Get 382% Return As RBI Announces Final Redemption For This SGB Series
Eight years after launch, the Sovereign Gold Bonds (SGB) 2017-18 Series-XIII has hit maturity—and holders are walking away with a windfall. The Reserve Bank of India has set the final redemption price at Rs 13,563 per unit, effective December 26, 2025, delivering roughly a 373% gain over the original issue price of Rs 2,866. For investors who applied online and received the Rs 50 discount (issue price Rs 2,816), the return climbs to about 381.6%. These figures exclude the separate 2.5% annual interest paid during the holding period.
Redemption at a glance
- Series: SGB 2017-18, Series-XIII (issue date: December 26, 2017)
- Final redemption date: December 26, 2025 (on completion of the 8-year term)
- Redemption price: Rs 13,563 per unit
- Methodology: Based on the simple average of closing gold prices published by the India Bullion and Jewellers Association (IBJA) for December 22, 23, and 24, 2025
- Early exit rule: Premature redemption was allowed from the 5th year onward, processed on interest payment dates
How the gains stack up
- Issue price (offline): Rs 2,866 → Approx. 373.23% price appreciation to redemption
- Issue price (online with Rs 50 discount): Rs 2,816 → Approx. 381.6% price appreciation
- Interest kicker: An additional fixed 2.5% per annum (credited semi-annually) was paid over the eight years and is separate from the redemption price
Tax treatment to remember
- Interest income: Taxable as per the Income-tax Act
- Redemption at maturity (for individuals): Capital gains are exempt
- Transfer before maturity: Long-term capital gains on transfer (not redemption) are eligible for indexation benefits
What are SGBs and why they clicked
Introduced in November 2015, Sovereign Gold Bonds were designed as a smarter, paper-based alternative to physical gold. Issued by the RBI on behalf of the Government of India and denominated in grams, SGBs track gold prices for capital appreciation while also paying a fixed 2.5% annual interest. The format cut out storage risk and making charges, while nudging household savings into financial assets instead of imported bullion.
Why new SGB issues stopped
Fresh tranches were discontinued in October 2023. The authorities cited that core objectives—reducing physical gold demand and encouraging financial savings—had largely been met, while the cost of managing and servicing the scheme had risen. With alternative routes like Gold ETFs and digital gold gaining traction, the need for frequent SGB issuances diminished. Importantly, existing bonds continue to operate as originally structured, including maturity and premature redemption provisions.
What investors should do now
- Check your holding mode: For demat, proceeds are typically credited to the linked bank account; for certificate/bank holdings, your servicing bank/post office will process the redemption.
- Confirm bank details: Ensure mandate and KYC information are up to date to avoid payout delays.
- Plan for taxes: Interest received over the years is taxable; maintain statements for records. The maturity redemption itself is tax-exempt for individual holders.
- Keep documentation: Retain the original allotment and interest credit records for audit and personal tracking.
For many, this SGB tranche has turned into a standout performer—combining gold’s long-run strength with sovereign backing and a steady interest stream. With the final redemption now live, it’s payout day for patient holders who stayed the distance.
