Sovereign Gold Bond alert: This 2017–18 series can fetch investors nearly Rs 9,800 on final redemption; check details
For the SGB 2017–18 Series-III, the final redemption price has been fixed at Rs 12,567 per gram. The bonds were originally issued at Rs 2,866 per gram, meaning investors will earn an absolute return of about 338% over the eight-year period
- Oct 16, 2025,
- Updated Oct 16, 2025 1:14 PM IST
The Reserve Bank of India (RBI) has declared the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series-III. The redemption will take place on October 16, 2025, marking the completion of the eight-year tenure from its issuance on October 16, 2017.
According to the RBI, the tranche was open for subscription between October 9–11, 2017, under the Government of India’s notification (F.No.4(25)-W&M/2017) dated October 6, 2017. As per the terms of the Sovereign Gold Bond Scheme, each bond is repayable after eight years, although investors are permitted to opt for premature redemption after five years, on interest payment dates.
Final redemption price
For the SGB 2017–18 Series-III, the final redemption price has been fixed at ₹12,567 per gram. This rate is determined based on the simple average of closing gold prices (999 purity) for the last three business days before redemption — October 13, 14, and 15, 2025 — as published by the India Bullion and Jewellers Association Ltd (IBJA).
The bonds were originally issued at ₹2,866 per gram, meaning investors will earn an absolute return of about 338% over the eight-year period, excluding the annual interest of 2.5%. In rupee terms, that’s a gain of ₹9,701 per gram (₹12,567 – ₹2,866).
Sovereign Gold Bond Scheme
The Sovereign Gold Bond Scheme, managed by the RBI on behalf of the Government of India, offers investors a safe, paper or demat-based alternative to holding physical gold. It eliminates concerns of purity and storage while providing an annual interest of 2.5%, payable semi-annually.
SGBs are tradable and transferable, and can be used as collateral for loans. Investors also benefit from capital gains tax exemption upon redemption for individuals, making them one of the most tax-efficient gold investment options available.
Premature redemption is permitted after five years from the issue date, but only on interest payout dates.
Risks and eligibility
While SGBs are considered low-risk, investors are exposed to potential capital loss if the market price of gold declines at redemption. However, the number of gold units remains intact, safeguarding the notional quantity of investment.
Under the Foreign Exchange Management Act, 1999, all resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions are eligible to invest. Even if an investor becomes a non-resident later, they can continue to hold the bonds until maturity.
Redemption procedure
Investors will be notified one month before maturity, and proceeds will be credited directly to their registered bank accounts on the redemption date. Any changes in bank details or contact information must be promptly updated with the issuing bank, SHCIL, or post office to ensure seamless payment.
With gold prices near record highs, the final redemption of SGB 2017–18 Series-III marks a windfall moment for long-term investors — reaffirming the appeal of sovereign gold bonds as a stable, government-backed wealth instrument.
Burden for govt
The sharp 35% rise in gold prices this financial year has pushed the government’s liability on Sovereign Gold Bonds (SGBs) to a record ₹1.5 lakh crore. With 126 tonnes of gold outstanding, each tonne now valued at ₹1,241 crore, the government’s debt has risen nearly 200% due to the 2.5% annual interest payout. Since 2017-18, this liability has surged 930%. Despite soaring prices, premature redemptions remain minimal. Although SGBs were discontinued in 2024-25, they have helped curb gold imports and support the rupee. Meanwhile, the RBI’s gold purchases act as a hedge, balancing this growing fiscal obligation. The surge highlights both the benefits and challenges of the SGB scheme. While it successfully diverted investment from physical gold and eased pressure on imports, the government now faces mounting repayment obligations as gold prices soar. Investors, however, benefit from rising valuations and guaranteed interest, making SGBs a lucrative yet costly policy instrument for the state.
The Reserve Bank of India (RBI) has declared the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series-III. The redemption will take place on October 16, 2025, marking the completion of the eight-year tenure from its issuance on October 16, 2017.
According to the RBI, the tranche was open for subscription between October 9–11, 2017, under the Government of India’s notification (F.No.4(25)-W&M/2017) dated October 6, 2017. As per the terms of the Sovereign Gold Bond Scheme, each bond is repayable after eight years, although investors are permitted to opt for premature redemption after five years, on interest payment dates.
Final redemption price
For the SGB 2017–18 Series-III, the final redemption price has been fixed at ₹12,567 per gram. This rate is determined based on the simple average of closing gold prices (999 purity) for the last three business days before redemption — October 13, 14, and 15, 2025 — as published by the India Bullion and Jewellers Association Ltd (IBJA).
The bonds were originally issued at ₹2,866 per gram, meaning investors will earn an absolute return of about 338% over the eight-year period, excluding the annual interest of 2.5%. In rupee terms, that’s a gain of ₹9,701 per gram (₹12,567 – ₹2,866).
Sovereign Gold Bond Scheme
The Sovereign Gold Bond Scheme, managed by the RBI on behalf of the Government of India, offers investors a safe, paper or demat-based alternative to holding physical gold. It eliminates concerns of purity and storage while providing an annual interest of 2.5%, payable semi-annually.
SGBs are tradable and transferable, and can be used as collateral for loans. Investors also benefit from capital gains tax exemption upon redemption for individuals, making them one of the most tax-efficient gold investment options available.
Premature redemption is permitted after five years from the issue date, but only on interest payout dates.
Risks and eligibility
While SGBs are considered low-risk, investors are exposed to potential capital loss if the market price of gold declines at redemption. However, the number of gold units remains intact, safeguarding the notional quantity of investment.
Under the Foreign Exchange Management Act, 1999, all resident individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions are eligible to invest. Even if an investor becomes a non-resident later, they can continue to hold the bonds until maturity.
Redemption procedure
Investors will be notified one month before maturity, and proceeds will be credited directly to their registered bank accounts on the redemption date. Any changes in bank details or contact information must be promptly updated with the issuing bank, SHCIL, or post office to ensure seamless payment.
With gold prices near record highs, the final redemption of SGB 2017–18 Series-III marks a windfall moment for long-term investors — reaffirming the appeal of sovereign gold bonds as a stable, government-backed wealth instrument.
Burden for govt
The sharp 35% rise in gold prices this financial year has pushed the government’s liability on Sovereign Gold Bonds (SGBs) to a record ₹1.5 lakh crore. With 126 tonnes of gold outstanding, each tonne now valued at ₹1,241 crore, the government’s debt has risen nearly 200% due to the 2.5% annual interest payout. Since 2017-18, this liability has surged 930%. Despite soaring prices, premature redemptions remain minimal. Although SGBs were discontinued in 2024-25, they have helped curb gold imports and support the rupee. Meanwhile, the RBI’s gold purchases act as a hedge, balancing this growing fiscal obligation. The surge highlights both the benefits and challenges of the SGB scheme. While it successfully diverted investment from physical gold and eased pressure on imports, the government now faces mounting repayment obligations as gold prices soar. Investors, however, benefit from rising valuations and guaranteed interest, making SGBs a lucrative yet costly policy instrument for the state.