Reserve Bank of India Fixes Redemption Price for Sovereign Gold Bond 2018-19 Series II
The Reserve Bank of India has announced a redemption price of ₹15,219 per unit for the premature redemption of Sovereign Gold Bond (SGB) 2018-19 Series II, effective April 23, 2026. This valuation is derived from the simple average of closing prices for 999 purity gold over the three business days preceding the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA).
Key Facts
- RBI / SGB Redemption Price : ₹15,219 per unit
- Series / SGB : 2018-19 Series II
- Redemption Date / Scheduled : April 23, 2026
- Purity / Gold : 999 (24-carat)
- Calculation Basis / IBJA : Average of previous three business days
Sovereign Gold Bonds were introduced by the Government of India in 2015 to reduce the physical demand for gold and shift domestic savings into a financial instrument. The 2018-19 Series II bonds, originally issued on October 23, 2018, have reached the end of their fifth year, making them eligible for premature redemption in accordance with the Government of India notification F.No.4(22)-B(W&M)/2018. The redemption process is strictly linked to the interest payment dates specified in the bond's original prospectus.
The calculation of the redemption price at ₹15,219 reflects the current market premium on gold. By using the simple average of the closing prices from April 20, April 21, and April 22, 2026, the RBI ensures transparency and alignment with the India Bullion and Jewellers Association Ltd (IBJA) benchmarks. This mechanism is vital for investors seeking to exit their positions before the full eight-year maturity period while still benefiting from the appreciation in gold value and the 2.5% annual interest paid on the nominal value.
| SGB Series | Issue Date | Redemption Date | Price per Unit |
|---|---|---|---|
| 2018-19 Series II | Oct 23, 2018 | April 23, 2026 | ₹15,219 |
Glossary
999 Purity: Refers to 24-carat gold, which is 99.9% pure gold.
IBJA: India Bullion and Jewellers Association Ltd, the body responsible for publishing daily gold and silver rates in India.
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