RBI sets ₹9,820 as redemption price for SGB 2018-19 Series-V

July 23, 2025 Finance Talk Valli Sarvani

The Reserve Bank of India (RBI) has announced that the Sovereign Gold Bond (SGB) 2018-19 Series-V will be available for premature redemption on Tuesday, July 22, 2025, at a price of ₹9,820 per gram/unit.

This marks a significant return for investors who subscribed to the bond during its original issuance in January 2019, when it was priced at ₹3,214 per gram.

According to the RBI’s press release dated July 21, 2025, the redemption price is calculated based on the simple average of closing gold prices of 999 purity for the previous three business days prior to the redemption date.

These rates are published by the India Bullion and Jewellers Association Ltd. For this cycle, the average is based on gold prices from July 17, 18, and 21.

The redemption value of ₹9,820 per gram translates into an absolute capital gain of ₹6,606 per gram, or a return of approximately 205.56%, excluding the fixed interest component.

Apart from capital appreciation, investors have also earned 2.50% annual interest, payable semi-annually on the initial investment amount.

For those opting for premature redemption, the final interest instalment is credited along with the redemption proceeds.

Although Sovereign Gold Bonds come with an 8-year maturity, investors are allowed to redeem them after five years, but only on interest payment dates.

To redeem, investors must submit a formal request to the bank, SHCIL, post office, or agent at least 30 days before the redemption date, and no later than one day before the interest payment date.

The funds are credited to the bank account registered at the time of purchase. SGBs are government-backed securities denominated in grams of gold.

They offer an alternative to physical gold while providing interest income and capital gains, all without the storage and security concerns associated with holding physical assets.

The RBI issues these bonds on behalf of the Government of India. The RBI had earlier announced the redemption price for the SGB 2018-19 Series-IV, which was due for early redemption on July 14, 2025.

As gold prices remain high, SGBs continue to offer a safe, tax-efficient, and attractive investment option, especially for those seeking exposure to gold without owning it physically.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on April 03, 2017