The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series XIII, delivering strong returns to long-term investors amid a sharp surge in gold prices. The bond tranche is completing its full eight-year maturity this week, and investors will receive the redemption proceeds directly in their bank accounts.
Maturity date and tranche details
According to the government notification issued under the Sovereign Gold Bond Scheme, the SGB 2017–18 Series XIII—originally issued on December 26, 2017—will mature on December 26, 2025. Sovereign Gold Bonds have a fixed maturity of eight years, after which the redemption amount is credited automatically to the investor’s registered bank account.
Redemption price set at ₹13,563 per unit
The RBI has fixed the final redemption price at ₹13,563 per unit. This value has been calculated based on the simple average of the closing price of 999-purity gold for the previous three business days, as published by the India Bullion and Jewellers Association (IBJA).
For this tranche, the average price was derived from gold rates on December 22, 23, and 24, 2025.
Investor returns and gains
At the time of issuance in December 2017, the bonds were priced at approximately ₹2,890 per gram. With the redemption price now at ₹13,563, investors are set to receive nearly 4.7 times their initial investment over eight years.
- Investment (2017): ₹2,890 per unit
- Redemption value (2025): ₹13,563 per unit
- Capital gain: ₹10,673 per unit
This translates into a return of over 369%, excluding the additional 2.5% annual interest earned during the bond’s tenure. The interest is paid semi-annually and is taxable as per the investor’s income tax slab.
About the Sovereign Gold Bond Scheme
The Sovereign Gold Bond Scheme was launched by the Government of India as an alternative to physical gold investment. Issued by the RBI on behalf of the Centre, the bonds are denominated in grams of gold and offer a dual benefit—capital appreciation linked to gold prices along with a fixed annual interest of 2.5% on the issue price.
The scheme aims to reduce India’s dependence on imported physical gold, discourage hoarding, and channel household savings into financial assets.
Key features of SGBs
Sovereign Gold Bonds have a maturity period of eight years, with an exit option available after five years on interest payment dates. The bonds can be traded on stock exchanges, transferred to other investors, or used as collateral for loans.
Investors can purchase SGBs through banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices, or online platforms. Bonds bought online are reflected in the investor’s demat account, while offline purchases come with a certificate of holding.
Tax treatment
Under the Income-tax Act, 1961, the interest earned on SGBs is taxable. However, capital gains arising on redemption at maturity are exempt from capital gains tax for individual investors. If the bonds are sold on the exchange before maturity, the resulting capital gains are eligible for indexation benefits.
