Outlook Business Desk
The Finance Ministry has called the Sovereign Gold Bond (SGB) scheme a success since its 2015 launch. However, due to global geopolitical tensions and fiscal considerations, new SGB tranches are currently paused, with future issuances under review.
Sovereign Gold Bonds (SGBs) are government securities linked to the price of gold. Investors pay in cash and receive returns equivalent to the gold value at maturity. They offer a secure, paper-based alternative to holding physical gold.
In a written reply to an MP's query, Pankaj Chaudhary, Union Minister of State for Finance, said fresh Sovereign Gold Bonds (SGBs) are under consideration. But due to ongoing geopolitical tensions and resource management needs, issuing new tranches isn't appropriate right now.
Launched in 2015, the scheme aimed to reduce India’s gold imports by shifting investment from physical to financial gold. It encouraged safe, paper-based gold investments, especially for long-term wealth planning.
As of March 31, 2025, the government has issued 67 tranches of SGBs. These totalled 146.96 tonnes of subscribed gold worth about ₹72,275 crore—highlighting strong cumulative investor interest.
By June 15, 2025, investors had redeemed 18.81 tonnes of SGBs. This represents a relatively small portion of total subscriptions, showing that many investors continue to hold their bonds.
The most recent Sovereign Gold Bond (SGB) tranche—2023–24 Series IV—was issued in February 2024. Since then, no new tranche has been announced. The Finance Ministry says future issuances depend on normalisation in global tensions and fiscal considerations.
The halt in new Sovereign Gold Bonds (SGBs) comes amid rising global gold prices and domestic fiscal pressures. Investors are now exploring secondary markets or gold Exchange-Traded Funds (ETFs) for similar exposure.
Sovereign Gold Bonds remain a secure and tax-efficient way to invest in gold over the long term. Although issuance is currently paused, the scheme may resume in the future. Investors should follow official updates from the government and the Reserve Bank of India (RBI).