Summary of this article
SGB 2018-19 Series VI premature redemption date is today.
SGB 2018-19 Series VI investors are set to make 361% returns.
SGB 2018-19 Series VI was issued on February 12, 2019.
The Reserve Bank of India (RBI) has announced the premature redemption price for the 2018-19 Series VI tranche of the sovereign gold bond (SGB) scheme. Notably, the tranche was issued on February 12, 2019. The RBI has also notified August 12, 2026 as the premature redemption date.
SGB 2018-19 Series VI Premature Redemption Date
RBI's rules allow the premature redemption of SGBs after the fifth year from the date of issue on dates on which the interest is payable. The early redemption window allows investors who hold SGBs to liquidate their holdings before the end of the maturity period.
What Is the Premature Redemption Price & Total Return?
According to RBI’s notification, investors can prematurely redeem their SGB 2018-19 Series VI holdings at a price of Rs 15,102 per unit.
“Accordingly, the redemption price for premature redemption due on August 12, 2026, shall be 15,102/- (Rupees Fifteen Thousand One Hundred and Two Only) per unit of SGB based on the simple average of closing price of gold for the three business days i.e., August 7, August 10, and August 11, 2026,” the RBI said in its official release.
SGB 2018-19 Series VI was issued at Rs 3,326 for offline investors and at Rs 3,276 for online investors with a Rs 50 discount. Investors are set to make strong gains upon prematurely redeeming their holdings. Online investors will see an absolute return of approximately 361 per cent indicating absolute gains of Rs 11,826 per unit, while offline investors will see absolute returns of 354 per cent, indicating absolute gains of Rs 11,776 per units.
How Is The Premature Redemption Price Calculated?
The premature redemption price for SGBs is computed using the simple average of closing price of gold of 999 purity of the previous three business days from the date of redemption, as published by the India Bullion and Jewellers Association (IBJA).
For the SGB 2018-19 Series VI, the premature redemption price was calculated specifically on the basis of the simple average of the closing prices on August 07, August 10, and August 11, 2026.
SGB investors who purchased the bond would have also gained an annual interest at the fixed rate of 2.50 per cent in addition to the amount they get upon redemption. However, this interest is credited semi-annually directly to the bank account of investors and remains taxable as per the income tax slab of the investor.
Paper Gold Gains In Popularity
Increasingly, investors are looking to add gold to their portfolios through the digital route.
According to data from the Association of Mutual Funds in India (Amfi) for the month of July 2026, gold exchange-traded funds (ETFs) attracted net inflows of Rs 1,558.75 crore.
As no new tranches of SGBs have been announced since February 2024, investors have taken to ETFs and electronic gold receipts (EGRs) to diversify their investment in paper gold.
