SGB Redemption Price: RBI Fixes Rate at ₹14,024 for 2026

The Reserve Bank of India has announced the final redemption price of ₹14,024 per gram for Sovereign Gold Bond 2018-19 Series-III, maturing on November 13, 2026.

Key points

Reserve Bank of India fixes final SGB redemption price at ₹14,024 per unit for the 2018-19 Series-III tranche.
The tranche matures on November 13, 2026, after completing its scheduled eight-year tenure.
Payout is calculated from the simple average of IBJA 999 purity gold closing rates on November 10, 11, and 12, 2026.
Capital gains arising on redemption upon maturity are fully tax-exempt for individual investors under Indian income tax laws.

The Reserve Bank of India (RBI) has announced the final SGB redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-III tranche maturing on November 13, 2026. According to an official press release issued by the central bank, the final redemption rate has been fixed at ₹14,024 per unit, where each unit represents one gram of 999 purity gold.

The announcement applies to the tranche issued on November 13, 2018, under the Government of India notification dated October 08, 2018. Under the terms of the Sovereign Gold Bond Scheme, bonds carry an eight-year tenure and become due for final repayment upon expiration of eight years from their date of issuance.

How the RBI Calculated the Final Redemption Rate

In line with the scheme rules laid down by the Ministry of Finance, the redemption price of Sovereign Gold Bonds is linked directly to prevailing physical gold prices. The rate is derived from the simple average of the closing price of gold of 999 purity over the three business days preceding the maturity date, as published by the India Bullion and Jewellers Association Limited (IBJA).

For the SGB 2018-19 Series-III tranche, the central bank calculated the benchmark price based on IBJA closing gold prices recorded on November 10, November 11, and November 12, 2026. Investors comparing this fixed benchmark against the broader gold rate today in India can see how institutional gold benchmark averages directly govern official sovereign bond redemptions.

Key Tranche Details and Maturity Summary

Tranche Name: Sovereign Gold Bond 2018-19 Series-III
Original Issue Date: November 13, 2018
Final Maturity Date: November 13, 2026
Final Redemption Price: ₹14,024 per unit (gram)
Pricing Benchmark Period: November 10, 11, and 12, 2026 (IBJA 999 Purity)

What this means for investors

For long-term investors holding the SGB 2018-19 Series-III tranche, the final redemption brings a structured end to the eight-year holding period. The principal redemption payment of ₹14,024 per unit will be credited directly to the bank account registered with the depository participant or receiving agency where the bonds are held. Investors do not need to initiate physical surrender procedures if their bank account and demat credentials remain updated.

A critical operational and tax benefit for individual investors is that capital gains derived from redeeming Sovereign Gold Bonds upon full maturity after eight years are completely exempt from tax under Section 47 of the Indian Income Tax Act. Unlike physical gold or gold mutual funds where capital gains attract taxation, holding SGBs to their ultimate maturity allows investors to retain the full value of price appreciation tax-free.

Once the redemption proceeds settle in investor accounts, market participants face the task of reallocating capital. While the SGB program provided fixed semi-annual interest alongside asset appreciation, investors receiving maturity proceeds will need to decide whether to rebalance into equities, debt instruments, or fresh precious metal allocations depending on their broader asset allocation strategy.

Frequently asked questions

Question? How will the final redemption proceeds be paid to SGB holders?
Answer: Redemption proceeds will be automatically credited to the bank account linked to the investor’s demat account or registered in the records of the receiving agency/RBI portal.

Question? Are the capital gains on this final SGB redemption taxable?
Answer: No. Capital gains tax is fully exempt for individual investors when Sovereign Gold Bonds are held until their final eight-year maturity.

Question? What benchmark does the RBI use to fix SGB redemption prices?
Answer: The RBI uses the simple average of closing prices for 999 purity gold published by the India Bullion and Jewellers Association Ltd (IBJA) over the three business days prior to the maturity date.

This article is for information only and is not investment advice. Do your own research or consult a licensed adviser before investing.