The RBI announced the redemption price for this tranche at ₹9,284 per unit, based on the simple average of gold prices (999 purity) published by the India Bullion and Jewellers Association (IBJA) on May 14, 15, and 16, 2025.
Strong gains over issue price
The original issue price of this bond was:
- ₹4,590 per gram (offline applicants)
- ₹4,540 per gram (online applicants with digital payment)
- At ₹9,284 per unit, this marks a gain of:
- 103% over the offline issue price
- 104.5% over the online issue price
These returns are excluding the semi-annual 2.5% interest earned over five years.
Redemption is not automatic
Investors should note that premature redemption is not automatic. Bondholders must submit a request through their demat account provider, bank, or the agent from whom they purchased the bond. The request should be made at least 10 days in advance of the interest payout date to ensure timely processing.
If an investor missed the May 19 redemption window, they will need to wait for the next interest payout date—six months later—for another opportunity to redeem prematurely.
The RBI announces fresh redemption prices before each such window.
