New Delhi, June 8 -- The Reserve Bank of India (RBI) has announced the premature redemption price for Sovereign Gold Bond (SGB) 2021-22 Series III, which was issued on 8 June 2021. Investors holding the tranche can opt for premature redemption from 8 June 2026, in line with the scheme's five-year exit provision.

SGBs are government securities denominated in grams of gold, issued by the RBI on behalf of the Government of India as substitutes for holding physical gold. The bonds carry an eight-year tenure with an option of premature redemption after five years. Under RBI rules, premature redemption is permitted after the fifth year from the date of issue, on the date on which interest is payable.

The RBI has fixed the premature redemption...