Investors holding Sovereign Gold Bonds (SGB) 2017-18 Series VII and 2018-19 Series III will soon have an opportunity to redeem their bonds prematurely on May 13, 2025. This redemption window comes after the completion of five years from the date of issuance, as per the terms outlined by the Government of India.
🔍 What is Premature Redemption under SGB?
Sovereign Gold Bonds have an 8-year maturity period. However, the scheme allows premature redemption after 5 years, but only on the interest payment dates. This provides investors with a convenient exit route before full maturity.
🗓️ Eligible SGB Tranches for May 13, 2025 Redemption
| Series Name | Issue Date | Eligible for Redemption From | Next Redemption Date |
|---|---|---|---|
| SGB 2017-18 Series VII | November 13, 2017 | November 13, 2022 | May 13, 2025 |
| SGB 2018-19 Series III | November 13, 2018 | November 13, 2023 | May 13, 2025 |
💰 Redemption Price Announced: ₹9,551 per Unit
The Reserve Bank of India (RBI) has announced that the redemption price for the premature redemption due on May 13, 2025, will be:
₹9,551 per gram
(Rupees Nine Thousand Five Hundred and Fifty-One Only)
This price is calculated as the simple average of closing gold prices of 999 purity, published by the India Bullion and Jewellers Association (IBJA), for the previous three business days—May 08, May 09, and May 12, 2025.
📈 How the Redemption Price is Calculated
The formula for determining the redemption value is:
Redemption Price = Average closing price of gold (999 purity) for the last 3 working days before redemption
This market-linked pricing ensures that investors get a fair and transparent exit price that reflects prevailing gold market rates.
📌 Key Takeaways for SGB Investors
- ✅ Redemption is allowed only after 5 years and on interest payment dates.
- 📅 Next eligible date: May 13, 2025
- 💸 Price per unit: ₹9,551 based on gold rates from IBJA.
- 📜 No capital gains tax if redeemed through RBI on maturity or eligible dates.
📝 Final Words
The Sovereign Gold Bond Scheme continues to offer not just capital appreciation linked to gold, but also annual interest of 2.5%, and tax advantages. If you’re holding SGBs from the eligible tranches and looking to exit early, May 13, 2025 is your next opportunity.
Stay tuned to Banking Insights Blog for more timely updates on investment redemptions, interest rates, and personal finance tips.
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