The Reserve Bank of India (RBI) has announced early redemption for Sovereign Gold Bond (SGB) 2018-19 Series-III. The early redemption will be allowed on November 13, 2025, i.e, today at a redemption price of Rs 12,350 per gram. Investors are set to receive about 288%. of absolute return in over seven years.
As per the Government of India’s notification dated October 8, 2018, investors are allowed to go for premature redemption after completing five years from the date of issue — but only on interest payment dates. Since this particular series was issued on November 13, 2018, the upcoming redemption date marks one of the scheduled early exit opportunities.
The redemption price has been fixed based on the simple average of gold prices (999 purity) published by the India Bullion and Jewellers Association (IBJA) over the three business days preceding the redemption date — that is, November 10, 11, and 12, 2025. Based on these prices, the average works out to Rs 12,350 per gram.
This means an investor holding one unit of the bond (equivalent to one gram of gold) will receive Rs 12,350, in addition to the interest that has been credited semi-annually during the investment period.
How investors can redeem early
Those who wish to opt for premature redemption need to approach their bank, post office, or the depository participant through which they had originally purchased the SGB. It’s advisable to submit the request a few days before the interest payment date to ensure smooth processing. The redemption amount will be credited directly to the investor’s bank account registered with the bond.
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.
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.
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