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RBI sets Sovereign Gold Bond 2018-19 Series I final redemption price at Rs 14901 per unit for May 4 2026 maturity, implying about 386 percent absolute return for investors
Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the government as an alternative to physical gold investment.
SGB Scheme Maturity Today: Investors of the Sovereign Gold Bond (SGB) 2018-19 Series I should be aware that they are now eligible to exit the scheme. The bond is set to mature on Monday 04, 2026 and the Reserve Bank of India has fixed the maturity prices for the investors.
The series was issued on May 04, 2018 and it has completed eight years from the date of issue of the Gold Bonds.
SGB 2018-19 Series I Maturity Price
The redemption price for the SGB maturing on May 4, 2026, has been set at Rs 14,901 per unit. This value is calculated based on the simple average of gold’s closing prices over three business days, April 28, April 29, and April 30, 2026.
The Sovereign Gold Bond (SGB) 2018–19 Series I was issued at Rs 3,064 per gram for online investors, factoring in a Rs 50 discount on the nominal price of Rs 3,114 per gram. At maturity, the bond has delivered an absolute return of nearly 386%.
In practical terms, an investment of Rs 1 lakh at the time of issuance would have grown to roughly Rs 4,86,320 upon redemption.
The redemption price is calculated based on the average closing price of 999 purity gold, as published by the India Bullion and Jewellers Association, over the three working days preceding the redemption date.
“Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for final redemption due on May 04, 2026, shall be ₹14901/- (Rupees Fourteen Thousand Nine Hundred and One only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., April 28, April 29, and April 30, 2026,” RBI said in the release.
How redemption works
SGBs have a maturity period of 8 years. On maturity, the government automatically credits the redemption amount to your registered bank account. You don’t need to sell the bond manually.
What returns do you actually earn?
SGB investors earn returns in two ways:
1. Fixed interest income
You earn 2.5% annual interest on the initial investment amount. This is paid every 6 months.
2. Gold price appreciation
If gold prices have increased over the years, you benefit from the rise. If prices fall, your redemption value will also be lower.
Is the maturity amount taxable?
Here’s the big advantage:
- Capital gains at maturity are completely tax-free’
- This tax benefit applies only if you hold till full 8-year maturity
However:
- The 2.5% interest is taxable as per your income slab
- If you exit early (after 5 years or via stock exchange), capital gains tax rules apply
Can you exit before maturity?
Early redemption allowed after 5 years, on interest payment dates
You can also sell SGBs on stock exchanges like National Stock Exchange or BSE Limited
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