About 50% of gold in SGB was completely covered at current prices; Respiration safe for next 4-5 years: Source – CNBC TV18

Sources told CNBC-TV18 that about half of the underlying gold bonds (SGBs) in Supreme Gold Bonds (SGBS) have been fully supported by the government. Senior officials said that the Center has ensured sufficient funds to cover 60-65 tonnes of gold in the Gold Reserve Fund (GRF), currently out of 130 tonnes outstanding outstanding under SGB.

It provides complete redemption coverage for the next 4-5 years, the sources explained.

Sources told CNBC-TV18, “SGB Reserve Fund will be able to cover 60-65 tonnes of gold redemption in the next 4-5 years, with the price of prevalent gold.

According to the Finance Ministry data presented in Parliament on 1 April, a total of 67 SGB installments have been released by FY 25, which represent 146.96 tonnes of gold. Out of this, 130 tonnes are outstanding, with a price evaluation of the issue of ₹ 67,322 crore by 20 March, 2025.

In FY25, 28,605 crore was transferred to the Gold Reserve Fund, a faster growth of ₹ 3,550 crore allocated in FY 25. For FY26, allocation of budget for GRF is almost. 700 crores.

The Finance Ministry told Parliament, “The government has maintained the Gold Reserve Fund (GRF), where the price and interest difference for SGB is deposited on time.”

Reserve Funds are part of a comprehensive provision framework including the guarantee redemption fund, gold monetization scheme and Senior Citizen Welfare Fund.