The Reserve Bank of India has fixed the redemption price for the Sovereign Gold Bond 2018-19 Series-II at ₹14,425 per gram. Investors who subscribed at the 2018 issue price of ₹3,146 have earned roughly 4.6 times their principal, plus 2.5% annual interest. The bonds mature on October 23, 2026, marking the end of their eight-year tenure.
The Reserve Bank of India (RBI) has confirmed the final redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-II at ₹14,425 per gram. This price marks the conclusion of the eight-year investment period for this specific tranche, which matures on October 23, 2026. Investors who have held these bonds since the initial issuance in October 2018, when the price was set at ₹3,146 per gram, are seeing an appreciation of approximately 4.6 times their initial principal. This calculation excludes the 2.5% annual interest that has been credited to investors every six months throughout the bond's tenure.
The redemption price is determined by the central bank using the simple average of the closing price of 999-purity gold over the final three business days—October 19, October 21, and October 22, 2026. This data is sourced from the India Bullion and Jewellers Association (IBJA). This methodology ensures that the maturity value reflects the current market spot rate of gold, providing a transparent exit for long-term holders.
Investors should note important shifts in the tax landscape regarding these instruments. Under current regulations, capital gains tax exemptions on maturity are reserved specifically for original subscribers who held the bonds until the maturity date. This means that individuals who purchased these bonds through the secondary market do not qualify for the same tax-free maturity benefits, regardless of their holding duration. Furthermore, the exemption only applies to those who kept their investment until the end of the term. Those who opted for premature redemption do not receive the same tax treatment as those holding until maturity.
As the bonds reach their maturity date, the redemption proceeds will be credited directly to the bank accounts linked to the investors' Demat or paper holdings. It is essential for investors to ensure their bank account details, such as the IFSC code and account number, are updated and active to avoid any potential delays in the transfer of funds. Investors who held the bonds in physical form should verify their registration with the receiving office or the bank.