SGB 2017–18 Series XI matures on Dec 11: Rs 1 lakh investment now worth over Rs 4.3 lakh as RBI sets redemption price

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The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series XI. The tranche is maturing on December 11, 2025. The tranche, originally issued on December 11, 2017, completes its eight-year tenure this week in line with the Government of India’s notification under the SGB Scheme.

As per the rules, the redemption value is calculated using the simple average of the closing price of 999-purity gold, published by the India Bullion and Jewellers Association (IBJA), for the three business days preceding the redemption date—December 8, 9, and 10.

Based on this, the RBI has fixed the final redemption price at Rs 12,801 per gram.

Investors in the Sovereign Gold Bond (SGB) 2017–18 Series XI are set to pocket impressive returns as the RBI has fixed the final redemption price at Rs 12,801 per unit for December 11, 2025. With the issue price in 2017 at around Rs 2,954 per unit, investors will earn a capital gain of Rs9,847 per unit, marking a jump of over 330% in eight years. When combined with the additional 2.5% annual interest paid throughout the tenure—amounting to roughly Rs 590 per unit—the total gain rises to Rs 10,437 per unit.

To put this into perspective, if an investor had invested Rs 1 lakh in this tranche in 2017, they would have purchased around 34 units; on maturity, they are set to receive approximately Rs 4.35 lakh, combining both redemption value and interest—showcasing why SGBs remain one of the most rewarding long-term investments.

SGB Scheme was introduced by the Indian government in November, 2025 as an alternative to attract gold ownership. The bonds were issued by the RBI for and on behalf of the Centre. The bonds denominated in grams of gold offered investors dual benefit-- earning a fixed annual interest of 2.5% on the issue price and earning capital appreciation linked to gold prices. The scheme majorly aimed to reduce India’s reliability on imported physical gold, curb hoarding, and channel household savings into financial assets.

The bonds have a fixed term of eight years, but investors can exit after five years on interest payment dates if they wish. SGBs can also be traded on stock exchanges, transferred to others, or used as collateral for loans.

If you want to invest in Sovereign Gold Bonds, all you need is to purchase Sovereign Gold Bond from either a bank, SHCIL or designated post offices. For offline purchases, an SGB certificate from the holding of the issuing bank or designated post offices is issued. You can collect it. In case you have purchased an SGB online, your demat account portfolio will reflect. The SGBs offer an interest of 2.5% per annum.

As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable. When an individual redeems these bonds, they are free from paying capital gains tax. Any capital gains that result from the transfer of the bonds on the exchange will be eligible for the indexation benefits.