RBI sets ₹14,425 redemption price for 2018–19 Series-II sovereign gold bonds
The bonds reach their eight-year redemption date on October 23. Outlook Money calculates different price gains for standard-price buyers and online applicants who received a discount.
The Reserve Bank of India set the final redemption price for its 2018–19 Series-II sovereign gold bonds at ₹14,425 per unit on October 22, with redemption due in India on October 23, 2026. The amount determines what holders receive for each unit at the end of the bonds’ eight-year term; their purchase price determines their individual price gain.
The tranche was issued on October 23, 2018. The RBI said the bonds become repayable eight years after issue, making October 23, 2026 their final redemption date. Its release sets the price for redemption due that day; it does not report that payments have already reached investors.
How the ₹14,425 price was calculated
The RBI said the redemption price is based on the simple average of closing prices for 999-purity gold over the three preceding business days, as published by the India Bullion and Jewellers Association. Outlook Money identified those pricing dates as October 19, 21 and 22. The method ties the maturity payment to gold prices near the redemption date, rather than to the price paid when the bonds were issued.
Why online applicants have a different price gain
Outlook Money reported a standard issue price of ₹3,146 per gram. Against the ₹14,425 redemption price, it calculated a price gain of ₹11,279 per gram, or 358.52%. Applicants who applied online and paid digitally received a ₹50-per-gram issue discount, bringing their purchase price to ₹3,096. For them, the reported price gain is ₹11,329 per gram, or 365.92%.
Those percentages describe the difference between the issue and redemption prices. Outlook Money reported that the tranche also paid annual interest of 2.50%, equivalent to ₹78.65 per gram each year at the standard issue price. That interest is separate from its calculated price gains, so the two figures should not be read as a measure of every payment an investor received over the full term.
Outlook Money said eligible final-redemption proceeds would be credited automatically to an investor’s bank account linked to the demat account. It also reported that its stated maturity tax treatment differs between bonds allotted in the original issue and those bought later on the secondary market. The reported price gains likewise depend on whether a holder paid the standard issue price or qualified for the online discount.
The RBI’s October 22 announcement gives holders the final per-unit redemption amount ahead of the October 23 maturity. Its pricing method and redemption date are set out in the RBI’s release, while the purchase-price comparisons and resulting gains are calculated by Outlook Money.
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Sources and context
- Final redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for final redemption of SGB 2018-19 Series-II due on October 23, 2026Reserve Bank of India
- RBI Sets SGB 2018-19 Series II Redemption Price At Rs 14,425 Yielding 365 Percent Returns - Outlook MoneyOutlook Money
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.