What happened
The Reserve Bank of India (RBI) has announced that holders of Sovereign Gold Bond (SGB) 2018-19 Series-II will receive ₹14,425 per unit when the bonds are finally redeemed on 23 October 2026.
The tranche was issued on 23 October 2018. Under the government notification governing the scheme, a gold bond is repayable when eight years have passed from its issue date, which makes 23 October 2026 the final redemption date.
How the price was worked out
The redemption price is based on the simple average of the closing price of 999-purity gold over the three business days before the redemption date. The prices used are those published by the India Bullion and Jewellers Association Ltd (IBJA).
For this tranche, RBI used the closing prices of 19, 21 and 22 October 2026. A simple average means the three prices are added and divided by three, with no weighting.
What it means for you
If you hold units of this tranche, the payout is ₹14,425 for each unit. Since one unit is the bond’s gold-linked denomination, you can multiply the price by the number of units you hold to see the principal amount due. For example, 10 units would come to ₹1,44,250.
The notice does not cover interest payments or tax treatment, so check those details with your bank, post office or agent through which you hold the bonds. You can also use our CAGR Calculator to work out the annual growth in your holding against the amount you originally paid.
Background
Sovereign Gold Bonds are government securities denominated in grams of gold, issued by RBI on behalf of the Government of India. Their redemption value moves with gold prices rather than being fixed in advance.
RBI regularly publishes such notices as tranches reach maturity. For other recent central bank updates, see our coverage of the forex hedging limit change.
