Final Redemption of First Sovereign Gold Bond Tranche Due
The first Sovereign Gold Bond tranche (2018-19 Series-I) reaches final redemption on 4 May 2026 after its eight-year maturity.
The Reserve Bank of India has announced the final redemption of the first tranche of the Sovereign Gold Bond (SGB) Scheme, the 2018-19 Series-I issued on 4 May 2018. As per the scheme, gold bonds mature eight years from issue, so this tranche's final redemption date is 4 May 2026.
Sovereign Gold Bonds are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India. Investors pay the issue price in cash and receive the value of the gold at redemption, plus fixed interest, offering a way to invest in gold without holding physical metal.
The redemption price is based on the average closing price of gold of the preceding few business days. The scheme was designed to reduce demand for physical gold and shift household savings into financial assets.
Key Points to Remember
- SGB 2018-19 Series-I (issued 4 May 2018) reaches final redemption
- Maturity: 8 years from issue
- SGBs issued by RBI for Govt of India, denominated in grams of gold
- Redemption price = average closing gold price of preceding days
- Aim: reduce physical gold demand, channel savings to financial assets
Exam Relevance
Relevant for UPSC Prelims (Economy — Govt Securities, Gold), Banking exams.
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