👨💼 By Prashant Marathe | EduInvesting.in | May 19, 2025
🧾 At a Glance:
Investors who subscribed to the Sovereign Gold Bond (SGB) 2017–18 Series VIII and want to exit early are in luck:
RBI has announced the premature redemption price at ₹9,282 per unit — payable on May 20, 2025, the next interest payout date.
If you bought the bond in November 2017, congrats — you survived multiple market crashes, a pandemic, and two different finance ministers. Time to cash out.
🟡 What’s the SGB Scheme Again?
For those who forgot (or never paid attention), the Sovereign Gold Bond Scheme is the RBI’s way of saying:
“Please don’t buy physical gold and stuff it in lockers — let us handle it, digitally and tax-efficiently.”
These bonds:
- Are issued by RBI on behalf of the Government of India
- Offer 2.5% annual interest (paid semi-annually)
- Are linked to the price of 999 purity gold (24K)
You could redeem them after 5 years, even though they mature at 8 years — that’s where we are now.
📅 The Series in Focus: 2017-18 Series VIII
- Issue Date: November 20, 2017
- Eligible for Early Redemption From: November 20, 2022
- Next Payout Date / Redemption Date: May 20, 2025
According to RBI rules, early redemption is only allowed on interest payment dates, and this bond pays every May and November. If you submitted your request on time, you’re getting paid this week.
💰 So How Much Are You Getting?
The redemption price is calculated as per:
“Simple average of closing gold price of 999 purity for the previous 3 business days”
Here are the reference dates:
- May 15, 2025
- May 16, 2025
- May 19, 2025
And based on the IBJA-published prices, the final redemption price is:
🎯 ₹9,282 per gram (unit)
📉 Original Issue Price vs Redemption
Let’s throw it back to 2017, when the issue price was around ₹2,945 per gram.
| Date | Value |
|---|---|
| 📅 Issue Price (Nov 2017) | ₹2,945 |
| 💸 Redemption Price (May 2025) | ₹9,282 |
| 📈 Absolute Gain | ₹6,337 |
| 📊 Return | ~215% over 7.5 years (CAGR ~15.5% excluding 2.5% interest) |
That’s without even counting the 2.5% interest per year you earned semi-annually. With that included? Chef’s kiss — your FD looks embarrassed in the corner.
🧾 Taxation Angle
The good stuff:
- No capital gains tax on redemption if you sell to RBI at maturity (or eligible premature exit).
- The interest income (2.5% p.a.) is taxable under “Income from Other Sources.”
So if you’re redeeming tomorrow, you get:
- ₹9,282 per bond (1 gram)
- Plus your last interest payout
🤔 Should You Redeem?
That depends.
| Scenario | Action |
|---|---|
| Need cash? | Redeem now. |
| Think gold will hit ₹11,000+ in 2 years? | Hold till full maturity in 2025–26. |
| Hate paperwork and emails from RBI? | Redeem and never look back. |
🧠 EduInvesting Take:
This is one of the few GoI schemes that aged like fine wine — especially compared to LIC IPOs or PSU bank shares from 2017.
SGBs offered:
- Capital appreciation
- Assured interest
- Zero locker headaches
- And now, a tax-free bonanza
If you have an old SGB lying in your Demat or RBI account, now’s a great time to check your redemption window.
💡 How to Redeem?
If your bonds are in:
- Demat: Ask your broker well in advance.
- RBI’s Stock Holding portal: Submit the redemption request at least 10 days before interest payout.
For May 20, 2025, that window has already closed — so if you didn’t act yet, your next shot is November 20, 2025.
📣 Official RBI Contact
Ajit Prasad
Deputy General Manager (Communications)
📞 022-2266 0502
✉️ helpdoc@rbi.org.in
🔗 www.rbi.org.in
