Sovereign Gold Bond 2018-19 Series-III Premature Redemption at ₹12,350 Per Gram

The Reserve Bank of India has announced the premature redemption price for Sovereign Gold Bond 2018-19 Series-III, providing an exit opportunity for investors who purchased these bonds 7 years ago. 

This redemption is part of the structured exit mechanism built into the SGB scheme, allowing bondholders to redeem their investments after completing 5 years from the issue date.

Redemption Price and Date

The RBI has set the redemption price at ₹12,350 per gram for the SGB 2018-19 Series-III, with the redemption date scheduled for November 13, 2025. This price is calculated based on the simple average of closing gold prices of 999 purity for 3 business days, namely November 10, 2025, November 11, 2025, and November 12, 2025, as published by the India Bullion and Jewellers Association Ltd. Investors holding 1 unit of the bond will receive ₹12,350, in addition to the semi-annual interest credited during the investment period.

Returns for Investors

Investors who purchased the SGB 2018-19 Series-III when it was issued on November 13, 2018, are set to receive approximately 288% absolute returns over the 7-year holding period. 

This substantial return reflects both the capital appreciation linked to gold prices and the fixed annual interest of 2.5% paid on the issue price. The bonds offer dual benefits, combining gold price appreciation with steady interest income throughout the investment tenure.

Read More: SGB 2017-18 Series Yields 316% Return on Maturity, Investors to Get Final Redemption Payment of ₹12,066!

Redemption Process

Investors wishing to opt for premature redemption need to approach their bank, post office, or depository participant through which they originally purchased the SGB. It is advisable to submit the redemption request a few days before the interest payment date to ensure smooth processing. The redemption amount will be credited directly to the investor's registered bank account.

Conclusion

The RBI's announcement of premature redemption for SGB 2018-19 Series-III at ₹12,350 per gram on November 13, 2025, provides investors with an attractive exit opportunity after 7 years of investment. 

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