SGB 2017-18 Series II Redemption Opens Today, July 28; Investors To Get 250% Return

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Posted by AI on 2025-07-28 11:10:42 | Last Updated by AI on 2026-09-27 01:42:06

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Investors in India's second series of Sovereign Gold Bonds 2017-18, issued back in July 2017, will receive a handsome return of 250.67% today, July 28, 2025, as the RBI sets the final redemption price at Rs 9,924 per gram.

The Reserve Bank of India (RBI) announced this latest development in its circular dated July 25, 2025, as the bonds, which were issued at a price of Rs 3,761 per gram, will mature today.

This Series II of the SGB 2017-18 has a tenor of 8 years and the final redemption price is based on the simple average of the closing price of gold of 999 purity, for the last 3 working days of the week preceding the maturity date, as published by the India Bullion and Jewellers Association Limited (IBJA).

The IBJA's gold price index for the week of July 25, 2025 was Rs 56,120 per gram, meaning that each gram of the gold bonds would be worth 56,120/999 = Rs 5,612 per gram. The bonds were issued in the denomination of 1 gram, so the final redemption price works out to be 5,612/31 = Rs 176.40 per gram. The RBI has settled with investors at a price of Rs 9,924 per gram, which is 250.67% of the issue price.

The first series of SGB 2017-18 was issued in November 2017 and it matured on October 9, 2021, with the RBI settling the redemption at Rs 4,761 per gram, which was 112.5% of the issue price.

These sovereign gold bonds are government securities that are denominated in grams of gold. They are aimed at offering investors benefits such as capital gains upon maturity, or redemption, along with a regular interest payment (the interest rate for the latest series was 2.50% p.a.). Their purpose is to displace physical gold in India, which is widely imported, and offer investors a safer and more liquid alternative.

These bonds are allowed to be used as collateral for loans and also enjoy a favourable taxation status, with capital gains tax exemption upon redemption being one of the benefits.

As a result of these benefits, they have been quite popular in India and are now part of the asset allocation plan for many investors, along with equity and debt instruments.

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