SGB 2017–18 Series XIII final exit today: Investors to earn nearly 5x return; Check price and details

Representative image

• RBI sets SGB 2017–18 Series XIII redemption price at Rs 13,563 per unit
• Investors gain nearly 4.7 times their investment over eight years
• SGBs offer 2.5% annual interest and capital gains tax exemption on redemption

Did our AI summary help?

The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bond (SGB) 2017–18 Series XIII, offering substantial gains to long-term investors amid a sharp rise in gold prices.  Investors who bought the bonds are set to receive their money back this week, as the tranche completes its full eight-year tenure.

Final redemption date and tranche details

As per the government notification issued under the Sovereign Gold Bond Scheme, the SGB 2017–18 Series XIII — originally issued on December 26, 2017 — will mature on December 26, 2025. Sovereign Gold Bonds have a maturity period of eight years, after which investors receive the redemption amount directly in their linked bank accounts.

Redemption price fixed at Rs 13,563 per unit

The RBI has fixed the final redemption price at Rs 13,563 per unit. This price is calculated based on the simple average of the closing price of gold of 999 purity for the previous three business days, as published by the India Bullion and Jewellers Association (IBJA).

For this tranche, the average was derived from gold prices on December 22, 23 and 24, 2025.

How much profit will investors make?

At the time of issuance in December 2017, the SGB 2017–18 Series XIII was priced at around Rs 2,890 per gram. With the final redemption price now at Rs 13,563, investors are looking at a capital appreciation of nearly 4.7 times over eight years.

Investment (2017): Rs 2,890 per unit

Redemption value (2025): Rs 13,563 per unit

Capital gain: Rs 10,673 per unit

This translates into a return of over 369%, excluding the additional 2.5% annual interest that investors earned during the bond’s tenure. The interest is paid semi-annually and taxed as per the investor’s income slab.

What is the Sovereign Gold Bonds scheme?

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.

How Do Sovereign Gold Bonds Work?

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.

What is the tax treatment of Sovereign Gold Bonds

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.