SGB 2017 investors set for 250% returns: Here's all you need to know

Sovereign Gold Bond 2017-18 Series II matures on July 28; investors to receive Rs 9,924 per gram along with interest. Here's how the returns stack up and what to check before redemption.

Investors in the Sovereign Gold Bond (SGB) 2017-18 Series II, issued in July 2017, are set to receive the maturity proceeds on July 28, 2025. According to the Reserve Bank of India (RBI), the final redemption price has been fixed at Rs 9,924 per gram, delivering more than 250 per cent returns for those who stayed invested for the full eight-year tenure.

 

How the final payout was calculated

According to the RBI’s release dated July 25, 2025, the redemption price has been derived based on the simple average of closing gold prices of 999 purity, published by the India Bullion and Jewellers Association (IBJA), over three working days in the preceding week (July 21–25).

 

This calculation method is consistent with SGB scheme norms and ensures alignment with prevailing market prices.

 

From Rs 2,830 to Rs 9,924: A solid gold gain

 

The issue price of the SGB 2017-18 Series II was Rs 2,830 per gram (excluding the Rs 50 online discount). With the final redemption value now at Rs 9,924 per gram, investors have gained Rs 7,094 per gram over eight years, translating to an absolute return of 250.67 per cent, excluding interest income.

 

In addition to the price appreciation, investors also earned 2.5 per cent annual simple interest, paid semi-annually, making the total effective yield even higher.

Redemption process: What investors should know

SGBs have a fixed maturity of eight years, with an early exit option after five years. One month prior to maturity, investors receive an intimation from their bank or broker. The proceeds are automatically credited to the registered bank account on the redemption date.

 

It is important to update any change in bank details or email ID with the relevant intermediary before the maturity date to ensure a smooth payout.

What are Sovereign Gold Bonds?

SGBs are government securities issued by the RBI on behalf of the Government of India. Denominated in grams of gold, they offer a way to invest in gold without the costs and risks of holding it physically.

 

They are particularly attractive due to:

 

-Capital gains tax exemption if held till maturity

 

-Assured 2.5 per cent annual interest

 

-Backing by the sovereign guarantee