RBI Announced Redemption Price for Sovereign Gold Bonds

SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) declared the redemption price for sovereign gold bond (SGB) Series X of 2017-18 due today. The premature redemption price has been fixed at INR 6,265 per unit, which is significantly higher by almost 112% above the issue price of INR 2,961 per unit.

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The redemption price is based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption published by the India Bullion and Jewellers Association (IBJA). The redemption price of INR 6,265 per unit has been determined from the closing gold price for 29th and 30th of November and 1st December, 2023.

The SGB, issued by the government, are originally for a tenure of eight years. However, investors are provided with an option for early encashment ore redemption of the same after a lock-in period of five years from the date of issue. The proceeds will be credited to the customer’s bank account provided at the time of application of the bond. The investors are required to approach the concerned authority at least one day before the coupon payment date, said the central bank press release.