SGB 2017–18 Series XII to matures today: Investors set for four-fold gain as Gold Bond delivers 366% return

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Investors in Sovereign Gold Bond (SGB) 2017–18 Series XII are in for a strong payout, with the Reserve Bank of India (RBI) announcing a final redemption price of Rs 13,245 per unit. The bonds are set to mature today, i.e. December 18, 2025, marking the completion of the eight-year tenure of this tranche.

As per the Government of India notification F.No.4(25)-(W&M)/2017 dated October 6, 2017, the bonds issued on December 18, 2017 are repayable on the expiry of eight years from the date of issue. Accordingly, December 18, 2025 has been fixed as the final redemption date for this series.

The Central Bank said that the redemption price has been calculated based on the simple average of the closing price of gold of 999 purity for the previous three business days—December 15, 16 and 17, 2025—as published by the India Bullion and Jewellers Association (IBJA).

An investor who bought Sovereign Gold Bond (SGB) 2017–18 Series XII at the issue price of Rs 2,890 per unit in December 2017 will receive Rs 13,245 per unit on final redemption on December 18, 2025. This translates into an absolute gain of Rs 10,355 per unit, or a return of about 366% from price appreciation alone—over 4.5 times the original investment. For instance, an investor holding 10 units would have invested Rs 28,900 in 2017 and will now receive Rs 1,32,450 on redemption, earning a capital gain of Rs 1,03,550. This is over and above the 2.5% annual interest paid semi-annually during the eight-year tenure, with the added benefit that capital gains on maturity are tax-free for individual investors.

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.