RBI Fixes Final Redemption Price of Sovereign Gold Bond 2018-19 Series-I at 14,901 Rupees
Why it matters
Sovereign Gold Bonds are issued by the RBI on behalf of the Government of India with a fixed tenure of eight years. The 2018-19 Series-I was issued on May 04, 2018, following the Government of India notification dated April 13, 2018. The SGB scheme allows investors to earn an annual interest rate (fixed at 2.5% for this series) while also benefiting from the capital appreciation of gold. Upon maturity, the bonds are redeemed at the prevailing market price of gold, providing a tax-efficient exit for individual investors.
The redemption price of ₹14,901 reflects the significant increase in gold prices over the last eight years. The calculation specifically used the average closing prices from April 28, April 29, and April 30, 2026. This process ensures that investors receive a price closely aligned with the current market valuation. The final payment includes the last installment of interest along with the redemption proceeds, which are credited directly to the investor's bank account.
| SGB Detail | Value/Date |
|---|---|
| Issue Date | May 04, 2018 |
| Redemption Date | May 04, 2026 |
| Redemption Price | ₹14,901 per unit |
| Calculation Basis | 3-day simple average (IBJA) |
Glossary
IBJA: India Bullion and Jewellers Association Ltd, the body responsible for publishing the daily closing rates of gold in India used for SGB valuations.
Redemption: The process of an issuer repurchasing a bond at or before maturity at a pre-set or calculated price.
NaukriSync Exam Angle
Indian Economy. Key fact to memorise: The SGB 2018-19 Series-I matured on May 04, 2026, with a final redemption price of ₹14,901 per gram. Most likely question format: MCQ asking for the method of calculating SGB redemption prices (3-day simple average of IBJA rates) or the duration of SGBs (8 years).