RBI Announces Final Redemption Price for Sovereign Gold Bond 2017-18 Series II

The Reserve Bank of India (RBI) has officially declared the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series II, which is set to mature on Monday, July 28, 2025. These bonds were originally issued in July 2017, and in accordance with the terms of the scheme, they mature after a fixed tenure of eight years from the date of issuance.

Final Redemption Price: How Much Will Investors Get?

As per the RBI press release dated July 25, 2025, the final redemption price for this tranche is ₹9,924 per gram. This value is derived using the simple average of the closing gold prices (of 999 purity) published by the India Bullion and Jewellers Association (IBJA) for the preceding week, specifically from July 21 to 25, 2025.

The redemption pricing method follows the guidelines outlined under the Sovereign Gold Bond Scheme, which stipulates that the final payout is based on the average closing price over the last three business days of the week prior to maturity.

What Was the Issue Price in 2017?

At the time of issuance in July 2017, the SGB 2017-18 Series II was offered at an issue price of ₹2,830 per gram. Investors who subscribed online were eligible for a ₹50 discount per gram, effectively lowering their entry price to ₹2,780.

Investor Returns: How Did the Investment Perform?

For an investor who bought the bond at ₹2,830 per gram (excluding online discount), the final payout of ₹9,924 per gram translates to an absolute gain of ₹7,094 over eight years.

In percentage terms, this amounts to a return of approximately 250.67%, not accounting for the annual interest payout.

In addition to capital appreciation, investors also earned a fixed annual interest of 2.5%, paid semi-annually, further enhancing the overall returns.

Redemption Process: What Should Investors Know?

SGBs have a fixed maturity of eight years, although premature redemption is permitted after the fifth year, on the dates of interest payouts.

About a month before maturity, bondholders are notified of the impending redemption. Upon maturity, the proceeds are automatically credited to the bank account registered in the investor’s records. Investors are advised to update their contact and banking details with the receiving office or depository participant in case of any changes.

Also Read: Inflation Battle Not Over Yet, Says RBI Governor Ahead of Key Policy Meet

What are Sovereign Gold Bonds?

Sovereign Gold Bonds are government securities issued by the RBI on behalf of the Government of India. Denominated in grams of gold, these bonds offer a safer, interest-earning alternative to holding physical gold. They are ideal for long-term investors seeking exposure to gold without the risks and costs of storage.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.