SGB Redemption Today: 2017-18 Series XII Delivers Over 4x Returns, Turning ₹2,840 into Substantial Gains

The Sovereign Gold Bond (SGB) 2017-18 Series XII, which was issued on December 18, 2017, reaches its maturity date today, December 18, 2025. The Reserve Bank of India (RBI) has set the redemption price for this series at ₹13,245 per unit.

According to the RBI, the redemption value is determined by calculating the simple average of the closing price of gold with 999 purity over the three business days prior to the redemption date. The India Bullion and Jewellers Association Ltd (IBJA) provides these gold prices. For this redemption, the average closing price was taken from December 15, 2025, December 16, 2025, and December 17, 2025.

When Series XII was initially offered in December 2017, the issue price was ₹2,890 per gram. That said, the reality is a bit more complicated. investors who applied online and paid through digital means received a discount of ₹50 per gram, effectively paying ₹2,840.

**Returns for Investors**

• Original Issue Price:** ₹2,890 per gram
• Online Discounted Price:** ₹2,840 per gram
• Redemption Price:** ₹13,245 per unit

Investors who purchased the SGB offline at ₹2,890 per gram will realize a profit of ₹10,355 upon redemption (₹13,245 - ₹2,890). This translates to a return of 358%. Those who availed of the online discount and purchased at ₹2,840 per gram will see a profit of ₹10,405 (₹13,245 - ₹2,840), resulting in a return of 366%. These calculations exclude the additional interest earned at a rate of 2.5% per annum on the initial investment.

Pankaj Chaudhary, Minister of State for Finance, provided these details in response to a question from TMC MP Saket Gokhale, noting that the figures pertain to SGBs issued between 2015 and 2024-25 (provisional). The government established a Gold Reserve Fund with a transfer of ₹28,000 crore in FY 2024-25 to manage redemptions, particularly in light of high gold prices.