The Reserve Bank of India (RBI) has announced the final redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series I, which was issued in June 2017. The bond is set to mature on June 19, 2022, and investors who purchased the bond will earn a whopping 221% return on their investment. The final redemption price has been fixed at ₹5,115 per gram, which is significantly higher than the issue price of ₹2,902 per gram.
The SGB scheme was launched by the Government of India in 2015 to reduce the demand for physical gold and to provide investors with a safe and secure way to invest in gold. The bonds are denominated in grams of gold and are issued by the RBI on behalf of the Government. The bonds have a tenure of 8 years, with an option to exit after 5 years.
The SGB 2017-18 Series I was the first series of the fiscal year 2017-18, and it was issued in June 2017. The issue price was ₹2,902 per gram, and the bond was available for subscription from June 12 to June 16, 2017. The bond has a face value of ₹2,000 per unit, and investors could purchase a minimum of 1 gram and a maximum of 4 kilograms of gold.
The final redemption price of ₹5,115 per gram is a significant increase from the issue price, and it translates to a return of 221% on the investment. For example, if an investor had purchased 1 gram of gold for ₹2,902, they will now receive ₹5,115, which is a gain of ₹2,213. This is a significant return on investment, especially considering that the bond has a relatively long tenure of 8 years.
The RBI has announced that the redemption price will be paid to investors on June 20, 2022, and it will be credited to their bank accounts. Investors who have purchased the bond can check the final redemption price and their returns on the RBI’s website. The SGB scheme has been a successful initiative, and it has helped to reduce the demand for physical gold and to provide investors with a safe and secure way to invest in gold. The scheme has also helped to mobilize gold savings and to provide a fillip to the government’s efforts to reduce the current account deficit.