RBI Announces Premature Redemption Price of ₹9,560 for SGB 2017-18 Series IX

The Reserve Bank of India (RBI) has declared the redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series IX, which becomes eligible for premature redemption on May 27, 2025.

As per the Government of India’s notification dated October 6, 2017, premature redemption of SGBs is permitted after the fifth year from the date of issue, aligned with interest payment dates. The current tranche, originally issued on November 27, 2017, has reached its premature redemption eligibility.

Redemption Price Fixed at ₹9,560 per Unit

The redemption price is calculated based on the simple average of closing gold prices (999 purity) for the last three business days preceding the redemption date. Using gold prices published by the India Bullion and Jewellers Association Ltd (IBJA) for May 22, 23, and 26, the RBI has set the redemption price at: ₹9,560 per unit (Rupees Nine Thousand Five Hundred and Sixty only)

About Sovereign Gold Bonds

Sovereign Gold Bonds are government securities denominated in grams of gold, offering investors a means to gain exposure to gold prices without the need to hold physical gold. They provide annual interest and are redeemable at the prevailing market price at maturity or on eligible premature redemption dates.

Investors redeeming their SGB 2017-18 Series IX units on May 27 will receive the notified amount directly, subject to applicable terms and settlement procedures.

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REF: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR4122A6F8881931D4833B6BD65FDF650BF88.PDF