SGB returns: RBI confirms final payout for 2017 gold bond series; long-term holders gain over 340%

A Sovereign Gold Bond (SGB) bought eight years ago has turned a Rs 1 lakh investment into more than Rs 4.4 lakh, after the Reserve Bank of India announced the final redemption price for the 2017-18 Series-X tranche. The RBI said in its statement dated 3 December 2025 that this series will mature on Thursday, marking exactly eight years from its issue date.This particular tranche had remained open for subscription between 27 and 29 November 2017, with settlement taking place on 4 December that year. The central bank reiterated that, under the Government of India’s notification dated 6 October 2017, these bonds are repayable after eight years, making 4 December 2025 the official redemption date.The RBI has fixed the final payout at Rs 12,820 per unit, a figure calculated using the simple average of the closing prices of 999-purity gold for the three business days immediately before redemption. The India Bullion and Jewellers Association (IBJA) recorded gold prices at Rs 12,821 per gram on 1 December, Rs 12,759 on 2 December, and Rs 12,880 on 3 December 2025, producing an average of Rs 12,820.When the bonds were originally issued, the ministry of finance had priced them at Rs 2,961 per gram, with an online discounted rate of Rs 2,911. Based on this, the absolute return—without including interest—comes to Rs 9,909 per unit (Rs 12,820 minus Rs 2,911). In percentage terms, this works out to roughly 340.3%, delivering a substantial gain for long-term investors.Alongside capital appreciation, SGB holders have also earned a 2.5% annual interest, paid by the government. The scheme, managed by the RBI, is designed as a digital or paper-based alternative to holding physical gold, removing concerns around purity and storage while offering the added benefit of interest income. Investors can also redeem their bonds early after five years, but only on interest payment dates. The bonds remain tradable, can be transferred, and may be used as collateral for loans.The RBI has clarified that investors will receive a maturity intimation one month before the payout date. On maturity day, the redemption amount will be credited directly to the bank account registered in the investor’s records. As per ET, anyone who has changed their bank details, email address or other contact information must inform their bank, SHCIL or post office in advance to avoid delays.