Gold bond redemption value drops 4.5% post budget custom duty cut | Economy & Policy News

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The redemption price of sovereign gold bond (SGB) scheme (SGB 2016 -17 Series I – Issue date August 05, 2016) will be Rs 6,938 for gold of the 999 purity (of one gram), the Reserve Bank of India (RBI) said on Friday, adding the date of the redemption will be August 5.


The price is around 4.5 per cent lower than the average price of the week before the Union Budget, which was presented on July 23. Gold prices dropped after a reduction in Customs Duty.


The Budget 2024 proposed to cut Customs Duty to 6 per cent on gold and silver. Finance minister Nirmala Sitharaman also proposed to reduce customs duty on platinum to 6.4 per cent.


The redemption price of SGB is based on the simple average of closing price of gold of 999 purity of the week (Monday-Friday), preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd.


“Redemption price for the final redemption due on August 5, 2024 shall be Rs 6,938/- (Rs Six thousand nine hundred and thirty-eight only) per unit of SGB based on the simple average of closing price of gold for the week between July 29 and August 2, 2024,” RBI said.


According to the scheme, gold bonds are repayable on the expiration of eight years from the date of issuance. “Accordingly, the final redemption date of the above tranche shall be August 5, 2024,” RBI added.


Date

Gold 99.90

Rs/10 Gm

15/7/2024

72932

16/7/2024

73339

18/7/2024

73979

19/7/2024

73240

Average

73373

22/7/2024

73218

23/7/2024

69602

24/7/2024

69151

25/7/2024

68227

26/7/2024

68131

Average

69666

29/7/2024

68800

30/7/2024

68680

31/7/2024

69309

1/8/2024

69721

2/8/2024

70392

Average

69380


Source: IBJA

First Published: Aug 02 2024 | 8:51 PM IS

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