New Delhi, July 21 -- Investors holding Sovereign Gold Bond (SGB) 2019-20 Series VIII can opt for premature redemption from July 21, with the Reserve Bank of India (RBI) fixing the redemption price at Rs.14,170 per unit. The tranche, issued on January 21, 2020, has completed five years, making it eligible for early redemption under the scheme's rules.

While the redemption price translates into a gain of more than three times the original issue price, investors should also understand the eligibility conditions, the redemption mechanism and the applicable tax rules before opting for an early exit.

Sovereign Gold Bonds have an eight-year maturity, but the RBI allows investors to redeem them prematurely after the fifth year from the date of...