SGB Premature Exit Window Opens Today, RBI Sets Rs 12,350 Redemption Price for Sovereign Gold Bond 2018-19 Series III

November 13, 2025 – The Reserve Bank of India has opened an early exit option for the Sovereign Gold Bond 2018-19 Series III holders. It has set the redemption price at Rs 12,350 per gram. Investors who redeem now will earn 288% in return over seven years. This is exclusive of the periodic interest earned during the tenure.

Early Redemption Details for SGB 2018-19 Series III

The Sovereign Gold Bond 2018-19 Series III was issued on November 13, 2018. Under the scheme, investors are allowed to redeem their bonds early after five years, but only on the scheduled interest payment date. For this series, the upcoming interest payment date presents one such early exit opportunity.

Reserve Bank of India calculated the redemption price using the average of 999 purity gold’s closing price, which was published by the IBJA. RBI gathered data for November 10, 11, and 12, 2025. The average price sums up to ₹12,350 per gram based on this calculation.

Investors who own one gram of gold under the bond will get a redemption of ₹12,350. This is in addition to the interest payments the investor receives every six months over the years.

How Can Investors Use the Premature Exit Option?

Investors need to contact the bank, post office, or depository participant if they wish for an early redemption of their SGB. In order to avoid delays, investors need to submit their request a few days before the date of the interest payment. Upon processing, the amount will be directly credited to the investor’s bank account.

What Does the Sovereign Gold Bond Scheme Offer?

As an alternative option to buy physical gold, the government launched the SGB scheme in November 2015. On behalf of the center, this is issued by the Reserve Bank of India. These bonds are denominated in grams of gold. It offers two key benefits. One is a fixed annual interest rate of 2.5% the second is the capital gains linked to the gold market price.

Tenure, Tradability and Loan Eligibility

Basically, SGBs have a maturity period of eight years. But investors have the choice to redeem them after five years on the interest payment date. Apart from the redemption, investors can trade these bonds on stock exchanges and transfer them to others. They can use the SGBs as loan collateral.

Tax Treatment of SGB Investments

Interest earned on Sovereign Gold Bonds (SGBs) is taxable according to the investor’s applicable income tax slab. However, capital gains on redemption—whether at maturity or through an early exit—are tax-free. If the bonds are sold on an exchange, the gains are eligible for the indexation benefit.

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