New Delhi, Feb. 26 -- On 21 February, the Reserve Bank of India published a calendar for the premature redemption of sovereign gold bonds (SGB) issued between 16 October 2017 and 8 September 2020 in 34 tranches. The redemption of these bonds will be held between 16 April and 8 September.

The bonds' issue, maturity, and early redemption prices are linked to the market price of gold. The first tranche of the SGB, issued by the government on 26 November 2015, was priced at Rs.2,684 per gram of gold. It was redeemed at maturity in November 2023 at Rs.6,132 per gram.

As with other bonds, the SGBs also paid investors some interest. The interest rate on gold bonds was kept lower than the savings bank rate. The government reckoned an appreciati...