RBI Announces Final Redemption for SGB 2017–18 Series VIII: Investors to Earn a Total Return of 317%

The Reserve Bank of India (RBI) has released the final redemption particulars for the Sovereign Gold Bond (SGB) 2017–18 Series VIII, originally issued on November 20, 2017. In line with the terms stated in the initial notification (F.No.4(25) -(W&M)/2017 dated October 6, 2017), this series will conclude its 8-year maturity period on November 20, 2025.

Final Redemption Price Set at ₹12,300 per Unit

For investors, the RBI has set the maturity redemption price at ₹12,300 per unit. This value is derived from the simple average of 999-purity gold prices published by the India Bullion and Jewellers Association (IBJA) over the 3 business days immediately preceding the redemption date, November 17, 18, and 19, 2025.

Subscribers who purchased the bond at its original issue price of ₹2,951 per gram will receive their maturity proceeds directly into their registered bank accounts on the redemption date.

How Is the Redemption Price Determined?

The RBI has stated that the redemption rate for this tranche is based strictly on the IBJA’s published average closing price of 999-purity gold across the three days before maturity. This transparent pricing mechanism ensures that the payout reflects prevailing market rates without distortion.

Investors Earn a Gain of ₹9,349 per Unit

Investors who entered at the issue price of ₹2,951 per gram will redeem at ₹12,300 per unit, resulting in a substantial absolute gain of ₹9,349 per unit over the eight-year period.

This translates into a total return of approximately 317%, or an estimated 19.7% annualised (CAGR), even before accounting for the 2.5% annual interest that SGBs provide. When the interest component is included, the effective return becomes even higher, making this series one of the standout performers among SGB issuances.

Also Read: RBI Announces Premature Redemption Price for SGB 2020-21 Series-II 

About the Sovereign Gold Bond Scheme

Launched by the Government of India and issued by the RBI, the Sovereign Gold Bond (SGB) Scheme was designed to offer investors a superior alternative to holding physical gold. Denominated in grams of gold, SGBs provide a dual benefit:

• A fixed annual interest rate of 2.5% on the issue price
• Capital appreciation linked to market gold prices

The primary objective of the scheme was to reduce India’s dependence on imported physical gold, discourage gold hoarding, and redirect household savings into productive financial instruments.

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