Mumbai – The Reserve Bank of India (RBI) has announced the final redemption price for Sovereign Gold Bonds (SGBs) due on March 17, 2025, setting it at ₹8,624 per unit. The price has been determined based on the simple average of closing gold prices for the week of March 10-13, 2025.
Calculation of Redemption Price
According to the RBI, the redemption price of SGBs is based on the simple average of closing gold prices of 999 purity for the preceding week (Monday to Friday), as published by the India Bullion and Jewellers Association Limited (IBJA).
Details of the SGB Tranche
The SGB 2016-17 Series IV, issued on March 17, 2017, was introduced as part of the Union Government’s Sovereign Gold Bond Scheme. These bonds have a maturity period of eight years, making them due for final redemption on March 17, 2025.
Implications for Investors
The RBI’s announcement provides clarity to investors holding these bonds, ensuring a transparent and market-linked redemption process. Sovereign Gold Bonds continue to be a preferred investment choice for those seeking exposure to gold while avoiding the risks associated with physical storage.
This final redemption marks the completion of another tranche under the Sovereign Gold Bond Scheme, which aims to reduce India’s reliance on physical gold imports while offering investors a secure and interest-yielding alternative to holding gold in physical form.
