The Reserve Bank of India has announced the final redemption price for Sovereign Gold Bond 2018-19 Series-II. The redemption date falls on October 23, 2026, exactly eight years after the bonds were issued. Investors holding this tranche will receive ₹14,425 per unit upon maturity.
Sovereign Gold Bond Redemption Price Details
The RBI calculates the Sovereign Gold Bond redemption price using a simple average of gold’s closing price over the three previous business days. For this tranche, the reference dates were October 19, October 21, and October 22, 2026. The India Bullion and Jewellers Association Ltd (IBJA) publishes these closing prices for gold of 999 purity.
Therefore, the final redemption price stands at ₹14,425 per unit. This price reflects the prevailing market value of gold at the time of maturity. As a result, investors benefit directly from gold price appreciation over the eight-year holding period.
What This Means for SGB Investors
Investors who purchased SGB 2018-19 Series-II at its issue price in October 2018 have seen strong returns. The scheme originally launched under GOI notification F.No.4(22)-B(W&M)/2018 dated October 8, 2018. Additionally, bondholders received annual interest payments of 2.50% throughout the holding period.
However, investors should note that redemption proceeds are credited directly to their registered bank accounts. No separate application is needed for final redemption. Meanwhile, capital gains on maturity redemption remain tax-exempt for individual investors under current rules.
The Sovereign Gold Bond scheme continues to be a popular alternative to holding physical gold. It offers price-linked returns without storage risks. For example, this series delivered a significant wealth gain over its eight-year tenure, reflecting gold’s long-term upward trend in India.
About the Sovereign Gold Bond Scheme
The Government of India launched the Sovereign Gold Bond scheme to reduce physical gold demand and shift savings into financial assets. The RBI issues these bonds on behalf of the government. Each unit represents one gram of gold, making it accessible for a wide range of investors.
Additionally, the bonds trade on stock exchanges, offering liquidity before maturity. This feature makes them a flexible investment option. Overall, the Sovereign Gold Bond scheme remains one of India’s most trusted gold investment instruments.
Source: RBI Press Releases
