Sovereign Gold Bonds: How much the Government has paid in interest and redemptions since 2015

The Union Government has incurred an annual interest outgo of ₹6,055.39 crore on Sovereign Gold Bonds (SGBs) issued since 2015, while the total redemption liability has reached ₹11,801.12 crore, the Rajya Sabha was informed on Tuesday.

Replying to an unstarred question raised by Trinamool Congress MP Saket Gokhale, the Ministry of Finance was asked (a) the total annual interest outgo and redemption liability of Sovereign Gold Bonds issued from 2015 till date, and (b) the measures proposed by the government to manage the redemption burden in the context of high gold prices.

In a written reply, Minister of State for Finance Pankaj Chaudhary said the interest outgo of ₹6,055.39 crore and redemption liability of ₹11,801.12 crore relate to SGBs issued between 2015 and 2024–25 (provisional).

On steps to manage redemptions, the minister said the government has created a Gold Reserve Fund to meet SGB redemption obligations. He added that ₹28,000 crore was transferred to the fund during the financial year 2024–25 to address the redemption burden arising from rising gold prices.

SGB investors reap over 300% returns on 2025 maturities

SGB investors benefited significantly from the surge in gold prices in 2025, with several bond series delivering absolute returns exceeding 300% on maturity.

How SGB returns are calculated

SGBs offer investors a dual source of returns. In addition to capital appreciation linked to gold prices, the bonds carry a fixed annual interest of 2.5%, which is credited semi-annually to investors’ bank accounts.

Capital gains arise from the difference between the gold price at the time of issuance and the price prevailing at redemption, making SGBs particularly attractive during periods of rising gold prices.