Yes, premature withdrawal is allowed in SGB, but only after the fifth year of investment

For premature withdrawal, your SGB will be traded on the stock exchange 

You don’t have to go through all that hassle

Just approach the bank, post office etc. before the coupon date (interest issuance date)

You need to approach them at least one day before the coupon date

Request for premature redemption of your SGBa

Your eligible SGB amount will be only credited to your bank account registered while opening the SGB account

Remember, you can only prematurely withdraw and close your SGB completely. Partial withdrawal is not allowed in SGB

Sovereign Gold Bonds (SGBs) are a better way to invest in gold virtually (paper form)

SGBs are issued by the Reserve Bank of India (RBI) on behalf of the Government of India

The minimum value you can invest in SGB is equal to one gram of 24 carat gold

The coupon rate (interest rate) on SGB is 2.5% (as of May 2022).