Reserve Bank of India to prematurely redeem sovereign gold bonds

The Reserve Bank of India (RBI) has decided to prematurely redeem sovereign gold bonds (SGBs), which were issued in 2016 at a price of Rs 4,813 per unit of SGB.

Under central government rules, the premature redemption is permitted after the fifth year from the date of issue of such gold bonds on the date on which interest is payable, the RBI said in a statement.

The due date of premature redemption of the above tranche shall be February 8.

Further, the redemption price of SGBs is based on the simple average closing gold price of 999 purity of the week (Monday-Friday) preceding