The Reserve Bank of India (RBI) has fixed the premature redemption price for the Sovereign Gold Bond (SGB) 2017-18 Series X at a premium of 111.5839% (in absolute terms without interest factor) over the SGB 2017-19 Series X issue price of Rs 2961 per unit, according to a press release by the RBI. The redemption price is based on the simple average of the closing gold price of 999 purity for the previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA). For the premature redemption due on December 04, 2023, the redemption price will be Rs 6,265 per unit of SGB. The due date for tendering the eligible SGBs to the RBI for premature redemption is also December 04, 2023. The tenure of the Sovereign Gold Bond Scheme is eight years, but premature withdrawal can be done after the fifth year from the date of issue of interest payment dates. The particular SGB 2017-18 Series X was issued at Rs 2,961 per gram on November 24, 2017. If investors opt for premature withdrawal, the absolute return will be 111.5%. To apply for premature redemption, investors can approach the concerned bank/SHCIL offices/Post Office/agent at least one day before the coupon payment date. The proceeds will be credited to the customer’s bank account provided at the time of applying for the bond. If the SGBs are held in demat mode, the process is slightly different. Investors need to complete and sign the redemption form and send it to Zerodha at least 10 working days before the coupon payment date. The proceeds from the redemption will be credited to the bank account linked to the Zerodha account. Income tax exemptions are provided for interest and long-term capital gains on the redemption of SGBs. Overall, the premature redemption price of the Sovereign Gold Bond 2017-18 Series X allows investors to withdraw at a premium, providing a potential opportunity for higher returns.