The Reserve Bank of India (RBI) has announced price for final redemption of its Sovereign Gold Bond (SGB) 2018-19 Series-I for investors due on Monday, 4 May, according to a release from the central bank.
This is for the SGB 2018 19 Series-I-Issue dated 13 April 2018, repayable on the expiration of eight years from the date of issue and with final date of May 04, 2026, the release added.
What is the price for this SGB redemption?
According to the release, the redemption price of the SGB will be based on simple average of closing price of of 999 purity of previous three business days from the date of redemption (28, 29 and 30 April 2026).
Accordingly, price for final redemption due on 4 May shall be ₹14,901 per unit of SGB ( ₹Fourteen Thousand Nine Hundred and One per unit of SGB), as published by the India and Jeweller’s Association Ltd (IBJA), it added.
How much will investors gain?
Investors who opted for the stand to gain nearly 386% increase at ₹14,901/unit, against the issue purchase price of ₹3,114/unit.
For investors who purchased the SGBs online, there was a ₹50 discount at time of issuance, pricing it at ₹3,064, when this is factored into the equation. An investment of ₹1 lakh at time of issue will grow to around ₹4.8 lakh on redemption.
Further, the SGB also earned 2.5% annual interest for the holding period. This amount has been credited directly to investor accounts. The final interest and principal amount will be made at maturity.
What is the tenure of SGBs?
Sovereign Gold Bonds issued by the banking regulator are usually payable at their date of expiration, which is eight years from issue date.
However, as per government rules on the SGB scheme, “premature redemption of gold bonds may be permitted after the fifth year from the date of issue, on the date on which interest is payable”.
Do you have to pay taxes for earnings from SGBs?
SGB taxation after 1st April 2026 (Budget 2026): Capital gains on redemption are exempt only for original subscribers who hold SGB till maturity.
LTCG on SGB: Gains from SGBs held for more than 12 months are taxed at 12.5%.
STCG on SGB: Gains from SGBs held up to 12 months are taxed at the applicable income tax slab rate.
Secondary market SGB taxation: SGBs bought from the secondary market are not eligible for capital gains exemption on redemption.
Interest income: Interest earned on the SGBs is also taxable as per slab rate.
What was the SGB scheme? What is its status in 2026?
Sovereign Gold Bonds (SGBs) are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. An alternative to physical gold, they give investors the benefit of capital appreciation backed by government security and without extra charges attached to traditional gold holdings.
- No new Sovereign Gold Bond tranches have been announced for FY 2026–27 and there is no calendar issued as of April 2026.
- The scheme has been paused in effect amid concerns over high borrowing, as per a Clear Tax report.
- Those with existing SGB holdings will continue till maturity at 2.5% annual interest or early exit during premature redemption.
- Those with existing holdings can also trade SGBs on stock exchanges, it added.
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