Final redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for final redemption of SGB 2018-19 Series-II due on October 23, 2026
Distilled Policy Brief
- The redemption price is calculated using the simple average of the closing price of 999 purity gold from the previous three business days, as published by the India Bullion and Jewellers Association Ltd.
- The redemption price for the tranche due on October 23, 2026, is set at ₹14,425 per unit.
🎯 Prelims High-Yield Examination Points
Sovereign Gold Bonds (SGBs) have a tenor of 8 years with an exit option from the 5th year. The redemption price is based on the simple average of closing gold prices of 999 purity published by IBJA for the previous three business days.
⚖️ Mains Analytical & Syllabus Linkages
Evaluate the role of Sovereign Gold Bond schemes in managing India's physical gold imports, fiscal deficit management, and financialization of household savings.
🎯 UPSC Prelims Practice Drill
Consider the following statements regarding the redemption pricing under the Sovereign Gold Bond (SGB) Scheme: 1. The redemption price is determined based on the simple average of the closing price of gold of 999 purity from the previous three business days. 2. The closing prices used for calculating the redemption price are published by the Reserve Bank of India. Which of the statements given above is/are correct?
- [A] 1 only
- [B] 2 only
- [C] Both 1 and 2
- [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
Statement 1 is correct because the redemption price of SGBs is calculated using the simple average of the closing price of gold of 999 purity of the previous three business days from the date of redemption. Statement 2 is incorrect because these closing prices are published by the India Bullion and Jewellers Association Ltd. (IBJA), not the Reserve Bank of India.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.