Money
The Reserve Bank of India has announced the final redemption price for the Sovereign Gold Bond 2018-19 Series-II, wrapping up an eight-year tenure.
Key points
- RBI set the final redemption price at Rs 14,425 per unit of SGB.
- The final redemption date is scheduled for October 23, 2026.
- Price calculation is based on the simple average of closing gold prices of 999 purity from IBJA.
- Applies to the SGB 2018-19 Series-II issued originally on October 23, 2018.
The Reserve Bank of India (RBI) has officially announced the final redemption price for the Sovereign Gold Bond (SGB) 2018-19 Series-II, which is due for maturity on October 23, 2026. Investors holding this particular tranche will receive ₹14,425 per unit of SGB as the scheme reaches its mandated eight-year tenure. This payout marks the conclusion of an investment cycle that began back in October 2018.
According to the central bank’s notification issued by Deputy General Manager (Communications) Ajit Prasad, the redemption value is derived from the simple average of the closing price of gold with 999 purity over the preceding three business days. Specifically, the calculation factored in the rates published by the India Bullion and Jewellers Association Ltd (IBJA) for October 19, October 21, and October 22, 2026.
How the Final SGB Payout is Calculated
The mechanics of Sovereign Gold Bonds dictate that upon reaching the eight-year maturity mark, the principal is repaid based on the prevailing market rate of physical gold rather than the original purchase price. By referencing the IBJA rates over the three specified business days prior to maturity, the RBI establishes a transparent valuation benchmark. This ensures that investors exiting the scheme receive a payout closely aligned with current market trends for the precious metal.
- Redemption Price: ₹14,425 per unit
- Maturity Date: October 23, 2026
- Reference Tranche: SGB 2018-19 Series-II
- Pricing Source: India Bullion and Jewellers Association Ltd (IBJA)
For individuals tracking broader precious metal trends, checking the daily gold rate today in India offers further insight into how domestic market valuations compare against these official redemption figures.
What this means for investors
For investors who participated in the 2018-19 Series-II tranche, this final payout marks the successful completion of an eight-year holding period, alongside the regular semi-annual interest payments received throughout the duration. Because SGBs offer capital gains tax exemption on redemption for individual holders, the final amount credited directly to bank accounts provides a tax-efficient exit from this sovereign-backed asset.
As these funds are returned to investors, many will look for opportunities to redeploy capital within the broader financial markets or physical commodities. Understanding how these sovereign redemptions settle helps participants plan their personal liquidity and portfolio rebalancing strategies without unexpected friction.
Frequently asked questions
What is the final redemption price for the SGB 2018-19 Series-II? The RBI has set the redemption price at ₹14,425 per unit based on IBJA closing prices.
When will the funds be credited to investors? The final redemption is due on October 23, 2026, following the completion of the eight-year tenure from the original issue date.
This article is for information only and is not investment advice. Do your own research or consult a licensed adviser before investing.
Based on information published by Reserve Bank of India (RBI). Source: Reserve Bank of India (RBI). Spotted an error? corrections@moneypuran.com
