New Delhi, April 19 -- The Reserve Bank of India has announced premature redemption under its Sovereign Gold Bond (SGB) 2020-21 Series-VII for investors tomorrow, on 20 April, according to a release from the central bank.

This is under government rules on the SGB scheme where "premature redemption of gold bonds may be permitted after the fifth year from the date of issue, on the date on which interest is payable".

According to the release, the redemption price of the SGB will be based on simple average of closing price of gold of 999 purity of previous three business days from the date of redemption. The price used will be as published by the India Bullion and Jewellers Association Ltd (IBJA), it added.

"Accordingly, the redemption pri...