The Reserve Bank of India (RBI) has set the final redemption price of the Sovereign Gold Bond (SGB) 2018-19 Series-II at ₹14,425 per unit, with the eight-year bond maturing today, October 23, 2026, according to the RBI release reported by Outlook Money.
Source: Outlook Money / RBI
The price is based on the simple average of the closing price of 999-purity gold for the three preceding business days — October 19, 21 and 22, 2026 — as published by the India Bullion and Jewellers Association (IBJA).
₹3,096 to ₹14,425 in eight years — yaani about 4.7 times the money
The tranche was issued in October 2018 at ₹3,146 per gram. Investors who applied online and paid digitally got a ₹50 discount, paying ₹3,096 per gram — so their profit works out to ₹11,329 per gram, an absolute return of 365.92 per cent. Offline buyers earn ₹11,279 per gram, or 358.52 per cent.
On top of the price gain, holders also received interest of 2.50 per cent a year — ₹78.65 per gram annually — through the bond's life. The final redemption amount will be credited automatically to the bank account linked to the investor's demat account.
Final redemption: ₹14,425/unit • Issue price (2018): ₹3,146/g • Online price: ₹3,096/g • Online return: 365.92% • Interest paid: 2.5% a year
Redemption at maturity is tax-exempt for investors who were allotted the bonds in the primary issue and held them for the full eight years. Bonds bought from the secondary market do not get that maturity tax exemption, and the yearly interest was always taxable at the investor's slab rate.
SGBs are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India with a sovereign guarantee, a minimum investment of one gram and premature redemption allowed after the fifth year on RBI-announced dates.