The Reserve Bank of India (RBI) announced that the redemption price for the final maturity of Sovereign Gold Bonds (SGBs) due on March 17, 2025, will be ₹8,624 per unit. “This price is determined based on the simple average of the closing gold price for the week of March 10-13, 2025,” the RBI stated.
The SGBs 2016-17 Series IV, issued on March 17, 2017, under the Union Government’s Sovereign Gold Bond Scheme, are due for repayment after eight years from the date of issue. “As a result, the final redemption date for this tranche will be March 17, 2025,” the central bank explained.
“The redemption price of the SGB will be based on the simple average of the closing price of 999-purity gold for the week (Monday to Friday) preceding the redemption date, as published by the India Bullion and Jewellers Association Limited (IBJA),” the RBI noted.
What Are Sovereign Gold Bonds?
Launched in November 2015, Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, offering an alternative to holding physical gold. Investors pay the issue price in cash, and the bonds are redeemed in cash upon maturity. The RBI issues these bonds on behalf of the government.
Govt Plans to End Sovereign Gold Bonds Scheme
The government is contemplating the closure of the Sovereign Gold Bond scheme. Following the 2025 Budget, Finance Minister Nirmala Sitharaman mentioned that the government is considering ending the SGB scheme in 2025. Economic Affairs Secretary Ajay Seth further explained that SGBs have become an expensive borrowing method for the government. As a result, no further issuance of SGBs will occur in the future.
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