The Reserve Bank of India (RBI) set a ₹14,024 final redemption price for the Government of India’s 2018-19 Series III Sovereign Gold Bond tranche, tying holders’ principal payout to recent gold prices.
The calculation uses India Bullion and Jewellers Association Ltd. (IBJA) benchmarks for three business days — Nov. 10, 11 and 12, 2026 — and applies a simple average to the 999-purity gold closing prices, the RBI said in its Nov. 12 release.
Issued on Nov. 13, 2018, the tranche reaches its eight-year final redemption date on Nov. 13, 2026. The scheme defines one bond unit as one gram of gold, so the announced price is equivalent to ₹14,024 per gram.
The 2018 scheme set fixed interest at 2.50% a year on nominal value, paid every six months. It also provided exit options in the fifth, sixth and seventh years on interest-payment dates.
The RBI set a ₹14,425 final redemption price for the 2018-19 Series II tranche in an Oct. 22 announcement. EconoTimes’ earlier coverage of the Series II redemption provides a comparison with the prior tranche.
