The Reserve Bank of India (RBI) has declared the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series-II. The bond, which was issued in July 2017, is set to mature on Monday, July 28, 2025, completing its mandated eight-year tenure.
According to the official RBI press release dated July 25, 2025, the final redemption price has been fixed at Rs. 9,924 per gram. This amount is calculated based on the simple average of the closing price of gold (999 purity) published by the India Bullion and Jewellers Association (IBJA) for the week spanning from July 21 to July 25, 2025.
Return on Investment
Investors who subscribed to this tranche in July 2017 have not only benefited from the appreciation in gold prices but have also received an annual interest of 2.5%, paid semi-annually, throughout the bond’s tenure. The initial issue price for the bond in 2017 was ₹2,840 per gram. With a final redemption price of ₹9,924, investors stand to earn a capital gain of approximately 249% over the eight-year period — tax-free under current capital gains tax exemption for SGBs held till maturity.
Key Highlights:
- Bond Name: Sovereign Gold Bond 2017-18 Series-II
- Issue Date: July 28, 2017
- Maturity Date: July 28, 2025
- Final Redemption Price: Rs. 9,924 per gram
- Price Basis: Simple average of closing gold prices (999 purity) from July 21–25, 2025
- Capital Gains Tax: Exempt if held till maturity
- Interest: 2.5% per annum, paid semi-annually
The Sovereign Gold Bond scheme, launched by the Government of India, offers a unique investment avenue by combining the safety of government securities with the returns of gold, minus the hassle of physical storage. With the robust return seen in this tranche, SGBs continue to be an attractive long-term investment option for individuals looking to hedge against inflation and diversify their portfolios.
Related Tools for Investors:
- Income Tax Slabs FY 2025-26
- Income Tax Calculator 2025
- New Income Tax Bill 2025 Overview
Investors due for redemption on July 28, 2025, are advised to check their registered bank accounts for credit of the maturity amount.
