RBI Sets Redemption Price for Sovereign Gold Bonds.The Reserve Bank of India (RBI) has announced the redemption price for Sovereign Gold Bonds (SGBs) maturing on April 23rd, 2024. Investors holding these bonds will receive ₹7,325 per unit upon redemption.

The RBI determines the redemption price based on the simple average of the closing gold price for three business days preceding the maturity date. In this case, the price considers the closing gold prices of April 18th, 19th, and 22nd, 2024.SGBs are a unique investment option offered by the Government of India through the RBI. These bonds are denominated in grams of gold and provide an alternative to holding physical gold. Investors pay the issue price in cash at the time of purchase and receive the redemption value in cash upon maturity. Additionally, SGBs offer regular interest payments throughout the investment period.

• Safe and Secure: Backed by the Government of India, SGBs offer a safe and secure way to invest in gold.
• Hedge Against Inflation: Gold prices often rise with inflation, offering a hedge against rising costs.
• Regular Interest: SGBs provide periodic interest payments, unlike physical gold.
• Tax Benefits: Capital gains tax is exempted on redemption of SGBs held for maturity (long-term).

Eligibility for SGB Investment

SGBs are open to a wide range of investors, including individuals, Hindu Undivided Families (HUFs), trusts, universities, and charitable institutions. Both resident and non-resident Indians can invest in SGBs.

Redemption Process for SGBs

Investors holding SGBs maturing on April 23rd, 2024, can redeem their bonds through the issuing bank or agent where they purchased them. The redemption process typically involves submitting the SGB certificate along with a completed redemption form.

Key Takeaways

• The RBI has set the redemption price for SGBs maturing on April 23rd, 2024, at ₹7,325 per unit.
• The redemption price is based on the average closing gold price for the preceding three business days.
• SGBs offer a safe and secure way to invest in gold with the added benefit of regular interest payments.
• Investors holding maturing SGBs can redeem them through the issuing bank or agent.

The RBI's announcement of the redemption price allows SGB investors to make informed decisions about their holdings. Investors can choose to redeem their bonds and receive cash, or they can hold onto their SGBs for continued gold exposure and potential future price appreciation.