NEW DELHI — The Reserve Bank of India (RBI) has officially announced a lucrative redemption price for specific tranches of Sovereign Gold Bonds (SGBs). The central bank set the price at ₹12,801 per unit for two separate series. This announcement brings significant cheer to long-term investors. Specifically, unit holders of the SGB 2017-18 Series-XI, issued on December 11, 2017, will receive this amount as their final maturity payout.
Massive Returns for 2017 Investors
The latest SGB redemption price highlights the immense success of the gold bond scheme. Investors who purchased the 2017-18 Series-XI bonds entered at a price of just ₹2,954 per unit. With the SGB redemption price now fixed at ₹12,801, these investors have secured a capital appreciation of nearly 333% over the eight-year tenure.
Furthermore, these unit holders earned a consistent interest of 2.5 per cent per annum on their initial investment throughout the holding period. The combination of interest income and massive capital gains makes this specific SGB series one of the highest-yielding safe-haven investments of the decade. Pertinently, the recent global rally in gold prices has directly benefited these domestic investors.
Premature Redemption Details
The RBI also applied this rate to another series. The bank announced the same price of ₹12,801 per unit for the premature redemption of the 2019-20 Series I. This premature window is due on December 11, 2025. Investors opting to exit this series early will utilize this specific price point for their payout.
Calculation Methodology Based on IBJA
The central bank strictly follows a transparent formula for SGB redemption price. The RBI derived the redemption price based on the simple average of the closing price of gold. Specifically, they used prices for gold of 999 purity from the previous three working days leading up to the redemption date. The India Bullion and Jewellers Association Ltd (IBJA) publishes these standard rates.
Accordingly, the RBI arrived at the ₹12,801 figure by averaging the closing price of the precious metal from Monday, December 8, 2025, to Wednesday, December 10, 2025. The government originally launched the SGB scheme to discourage the purchase of physical gold. India is one of the world’s largest gold importers, and reducing physical demand helps manage the current account deficit. The impressive returns demonstrated by these maturing bonds validate the scheme’s attractiveness as a financial alternative to physical metal.
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