Sovereign Gold Bond: RBI announces final redemption price date for sovereign gold bond..
Gold prices are steadily rising these days. However, recently, the RBI announced the final redemption date for Sovereign Gold Bonds (SGBs) 2017-18 Series III. In a statement, the RBI stated that the last date for redemption for the above tranche will be October 16, 2025. The subscription date for this tranche was October 9-11, 2017, while its issuance date was October 16, 2017. Redeeming this bond will yield investors a return of approximately 338%.
SGBs have a fixed term of eight years, but investors are offered the option of premature withdrawal. According to RBI guidelines, premature redemption of SGBs is only possible after the completion of the fifth year from the date of issue.
Final Redemption of SGB 2017-18 Series-III
The RBI stated in a statement that under the Sovereign Gold Bond Scheme, as per Government of India Notification No. 4(25)-W&M/2017, dated October 6, 2017 (SGB 2017-18 Series-III – Issue Date October 16, 2017), gold bonds will be redeemable after eight years from the issue date. Therefore, the final redemption date for this series will be October 16, 2025.
The redemption amount for the final redemption on October 16, 2025, will be ₹12,567 per unit. This amount is based on the simple average of the closing price of 999 purity gold for three working days: October 13, 2025, October 14, 2025, and October 15, 2025. The final redemption value of SGBs will be calculated based on the simple average of the closing prices of 999 purity gold for the three working days preceding the redemption date.
How to get the return
According to a notice from the Ministry of Finance dated December 15, 2017, SGB 2017-18 Series III was issued at ₹2,866 per gram without discount. On the redemption date, it will yield a total simple return of approximately 338%. The total return will be ₹12,567 – ₹2,866 = ₹9,701 (excluding interest). In percentage terms, this is ₹9,701 ÷ 2,866 × 100 = 338%.
Redemption Process
Investors will be informed about the upcoming maturity of the bond one month prior to maturity. On the maturity date, the maturity amount will be credited directly to the bank account based on the details registered in the records. If the account number, email ID, or any other details change, the investor should immediately inform the bank/SHCIL/PO.
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