New Delhi, Oct. 15 -- The Reserve Bank of India (RBI) has set the premature redemption price of the Sovereign Gold Bond (SGB) 2019-20 Series V at Rs.14,725 per gram, with the redemption window due on October 15, 2026.

Sovereign Gold Bonds are government securities denominated in grams of gold. Issued by the RBI on behalf of the Government of India, they allow investors to gain from changes in gold prices without holding physical gold. The bonds also pay fixed interest of 2.5% per annum on the original investment amount. Here's what you need to know.

According to an RBI press release issued on Wednesday, premature redemption is permitted after the fifth year from the bond's issue date, on an interest payment date.

The redemption price i...