Sovereign Gold Bond 2016-17 Series IV Due On March 17: Check Out Final Redemption Price Fixed By RBI

The Reserve Bank of India (RBI) has announced March 17, 2025, as the due date for the redemption of Sovereign Gold Bonds (SGBs) 2016-17 Series IV. It has also fixed the redemption price for the scheme holders which is based on the simple average closing price of 999 purity of the week (i.e Monday to Friday).

The India Bullion and Jewellers Association Ltd (IBJA) published the official release earlier this week noting that the final redemption price of SGB will be based on the simple average of the closing gold price of 999 purity of the previous three business days from the date of redemption.

How Much Money Will You Get?

RBI has fixed the price for the final redemption due on March 17, 2025, at Rs 8,624.

“The redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of the previous three business days from the date of redemption. Accordingly, the redemption price for premature redemption due on March 11, 2025, shall be Rs 8,596/- (Rupees Eight Thousand Five Hundred and Ninety-Six only) per unit of SGB based on the simple average of closing gold price for the three business days i.e., March 06, March 07, and March 10, 2025,” the release stated.

Sovereign Gold Scheme: What Is It?

SGBs are government securities issued by the RBI on behalf of the Government of India. This gold scheme allows holders to invest in the yellow metal without holding physical gold. The investors have to pay the issue price at the time of buying and the bonds are redeemed in cash on maturity.

SGBs have an eight-year maturity period, but investors can exit after five years on the interest payment date.

How Are SGBs Sold?

These gold bonds are sold through set mediums such as scheduled commercial banks (excluding Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), post offices (only the designated ones), and recognised stock exchanges, namely National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

Who Can Buy SGBs?

The Bonds are restricted for sale to resident individuals, Hindu Undivided Family (HUFs), Trusts, Universities and noted Charitable Institutions.

Premature Redemption of SGBs

The SGBs, which have a lock-in period of eight years, can be redeemed after years once the RBI announces the redemption date.

Accordingly, the SGB 2019-20 Series X, which was initially issued on 11 March 2020, has now been opened for premature redemption starting from 11 March 2025.

“On the Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after the fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the due date of premature redemption of the above tranche shall be March 11, 2025,” the official notification notes.