Check Returns From SGB 2017-18 Series XIII: RBI Announces Premature Redemption Price

RBI announced the premature redemption price of Sovereign Gold Bond 2017-18 Series XIII to be scheduled for redemption today. The CAGR of this SGB amounts to 14.98 per cent.
Check Returns From SGB 2017-18 Series XIII: RBI Announces Premature Redemption Price

The Reserve Bank of India (RBI) on June 25, 2024, announced the premature redemption price of Sovereign Gold Bond 2017-18 Series XIII. The premature redemption is scheduled for today June 26, 2024.

Sovereign Gold Bond 2017-18 Series XIII was issued on  December 26, 2017. The Sovereign Gold Bond Scheme, allows premature withdrawal, once the investment tenure of five years is completed. Accordingly, the next premature redemption date of this tranche falls on June 26, 2024. Sovereign gold bonds have a maturity tenure of 8 years and offer a fixed interest rate of 2.50 per cent, paid twice every year till maturity.

Redemption Price & Returns of SGB 2017-18 Series XIII

The redemption price of Sovereign Gold Bond 2017-18 Series XIII is Rs 7,203 per unit, calculated based on the simple average of the closing gold price (999 purity) on the three previous business days from the redemption date, as published by the India Bullion and Jewellers Association Ltd (IBJA).

The issue price of SGB 2017-18 Series XIII in 2017 was Rs. 2831 for those who subscribed via online application.  This SGB has completed 6.5 years of tenure till June 26, 2026.  If an investor had bought one gram of SGB at redemption now, with gold priced at Rs 7,203 per gram, the CAGR for 6.5 years amount to 14.98 per cent returns. The overall return on the investment amounts to 154.44 per cent.

The CAGR generated by SGB is in addition to half-yearly interest of 2.50 per cent every year for 6.5 years. Notably, SGBs incur no tax upon redemption.

An SGB can be prematurely withdrawn by submitting a request to the RBI's regional office (RO) or depository at least 10 days before the interest payment is due. A request must be submitted to the RBI via the E-Kuber Portal at least four days before the interest due date and will be reviewed for accuracy.

For investments held outside of a demat account, an investor can approach the bank, SHCIL, post office, or agent at least one to 30 days before the scheduled premature redemption date.

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