Sovereign Gold Bond 2017-18 Series-VII matures on November 13; investors set for massive 288% return

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Along with announcing redemption price for premature exit for Sovereign Gold Bond 2018-19 Series-III, the Reserve Bank of India (RBI) also announced that the final redemption of Sovereign Gold Bond (SGB) 2017-18 Series-VII will take place on November 13, 2025, with a redemption price of Rs 12,350 per gram.

Priced at Rs 2,961 per gram, the series was originally issued on November 13, 2017, under the Government of India’s notification F.No.4(25)-(W&M)/2017 dated October 6, 2017. The bonds were designed to mature after eight years, meaning investors will now receive their final payout exactly on the maturity date.

How the redemption price is calculated

The redemption price for Sovereign Gold Bonds is determined based on the simple average of gold prices (999 purity) published by the India Bullion and Jewellers Association Ltd (IBJA) over the three business days preceding redemption. For this tranche, the average was taken from November 10, 11, and 12, 2025, resulting in a redemption value of Rs 12,350 per gram.

Investors’ return — nearly 288% absolute gain

Those who invested at Rs 2,961 per gram in 2017 will now receive Rs 12,350 per gram in 2025.

How redemption works

Investors don’t need to take any extra steps for redemption. On the maturity date, both the principal and the final interest installment will be automatically credited to the bank account linked with the bond. Those who hold bonds in demat form will receive the proceeds through their respective depositories.

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.