RBI Sets ₹14,425 Redemption Price for 2018-19 Gold Bond Series
India's central bank announced the final redemption price for its Sovereign Gold Bond 2018-19 Series-II, which matures today, October 23, 2026, at ₹14,425 per unit.
Redemption Price Finalised
The Reserve Bank of India (RBI) has set the final redemption price for its Sovereign Gold Bond (SGB) 2018-19 Series-II at ₹14,425 (Rupees Fourteen Thousand Four Hundred and Twenty-Five) per unit. This tranche of the government-backed gold bonds matures today, October 23, 2026, eight years after its issue.
The RBI, which manages the SGB scheme on behalf of the Government of India, confirmed the payout figure in a press release yesterday. This redemption marks the conclusion of the eight-year tenure for this specific bond series.
Pricing Methodology
The redemption price was calculated based on the simple average of the closing price of 999 purity gold over the three business days preceding the redemption date. According to the RBI, these pricing days were October 19, October 21, and October 22, 2026. The India Bullion and Jewellers Association Ltd (IBJA) published the gold prices used for this calculation.
This methodology aligns with the terms outlined in the original Government of India notification from October 8, 2018, which established the SGB 2018-19 Series-II.
Sovereign Gold Bond Scheme Overview
The Sovereign Gold Bond scheme, introduced by the Government of India, offers investors an alternative to physical gold holdings. Bonds are denominated in grams of gold and provide an annual interest rate, alongside the capital appreciation linked to gold prices. This 2018-19 Series-II was issued on October 23, 2018.
The scheme aims to reduce India's reliance on gold imports by encouraging domestic investment in paper gold, thereby supporting the country's balance of payments.
For investors holding the SGB 2018-19 Series-II, the redemption today means a return based on the market price of gold at maturity, in addition to the fixed interest received over the bond's life. The ₹14,425 per unit payout provides a clear exit value for these bondholders.
The successful maturity of this tranche reinforces the liquidity and predictability of the SGB programme, potentially encouraging continued participation in future bond issuances. This mechanism offers a stable, government-backed avenue for gold exposure without the storage and purity concerns of physical bullion.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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