RBI Floating Rate Savings Bonds 2020 (Taxable)

Economics 15 May 2021 1:40:PM

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Government of India announced the scheme of Floating Rate Saving Bonds for Individuals and HUFs. NRIs are not allowed

Highlights of the Issue :

*Open for Subscription from July 1, 2020

* Minimum Investment amount - 1,000 and in multiples of 1,000 thereafter, Maximum - No limit.

* Interest to be paid Half yearly on every January 1 & July 1
* Maturity of the Bond is 7 Years. 

* Coupon/Interest Rate is reset on every half yearly basis. (Cumulative option is not available)

* Initially the Bonds will be issued at a rate of 7.15% and on January 1, the rate of interest will be reset.

( The rate will be NSC rate + 0.35%. )
* Special Maturity Profile for Senior Citizens: 
    For Age 60-70 Years is 6 Years
    For Age 70-80 Years is 5 Years
    For Age 80 Years and above the maturity is 4 Years
(Premature encashment will Attract penalty- Penalty charges @ 50% of last coupon payment)

* Bonds will be held in the electronic form (Bond Ledger Account)

* Interest Amount is Taxable under income tax Act 1961

* Bonds are non transferable and cannot be kept as collateral.

* Nomination is allowed

Termsheet FAQ Form

 

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