Govt transferred INR 280 bln in reserve fund in FY25 for gold bond repayment
This story was originally published at 14:43 IST on 9 December 2025
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NEW DELHI – The government transferred INR 280 billion to the Gold Reserve Fund in 2024-25 (Apr-Mar), which was especially created to manage the redemption of sovereign gold bonds, Minister of State for Finance Pankaj Chaudhary said Tuesday. The government holds reserve funds in its public account.
The total annual interest outgo of gold bonds issued between calendar year 2015 and FY25 was INR 60.55 billion, Chaudhary said in written reply to a question in Rajya Sabha. Meanwhile, the redemption liability of these bonds issued in the same period was INR 11.80 billion, Chaudhary added.
The government, which had introduced the gold bond scheme in 2015 to limit heavy imports of the precious metal, discontinued the scheme last year due to its high debt burden. Under the scheme, investors were paid an interest of 2.5% per annum, and at maturity, the bonds were redeemed at the prevailing gold price. As such, the return on investments in gold bonds was over 100%. End
Reported by Krity Ambey
Edited by Tanima Banerjee
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