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Reserve Bank of India

FLOATING RATE SAVINGS BONDS, 2020 (TAXABLE)


Tenure

7 Years

Interest Payout

Half-Yearly

Rate of Interest (p.a.)

7.15%

(NSC Rate + 0.35%)

Deposit Amount

Offline Only


Issued by Government of India.

Bonds carry Sovereign Guarantee both on redemption amount and on the interest.

Bonds will pay 0.35% higher interest than NSC

Interest rate on the bonds will be re-set on half-yearly basis.

Interest Payment will be higher when NSC rate goes up.

Interest Payment will be lower when NSC rate goes down.


Resident individual

Individual on behalf of minor child.

Individual jointly with any other individual

HUFs


STEP 01

Enter your details on Money Honey website, which are required for investment in RBI Bond and be ready with cheque and documents.

STEP 02

Our Collection Executive (CE) will visit at your prefered location/time with RBI Bond pre-printed form. Sign on the form and hand over the cheque and documents to the CE.

STEP 03

After few days (20 to 25 days), you will receive the receipt of your investment.


SALIENT FEATURES


A sole holder or all the joint holders may nominate one or more nominees to the rights of the bonds.

Non-resident Indians can also be nominated.

The existing nomination can be cancelled by a request to the Office of Issue.

Nomination facility is not available in case the investment is in the name of a minor.

In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed.

Interest on the Bonds will be taxable under the Income-tax Act, 1961.

10% Tax will be deducted at source while interest is paid.

If an exemption under the relevant provisions of the Income Tax Act, 1961 is obtained, it may be declared in the Application Form.

Applicants who have obtained exemption from Income Tax shall make a declaration to that effect in the application (in Form 'B') and submit a true copy of the certification obtained from Income Tax Authorities.

The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.

A certificate of holding will be issued to the holder/s of Bonds as a proof of subscription.

Payment Frequency - The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year.

Rate - The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.

Base Rate - The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.

Age Bracket Premature Encashment Lock-in Period Bond Surrender Period Penalty Charges
Below 60 Years Not Elighible 7 Years NA NA
60 to 70 Years Elighible 6 Years After 12th interest payment 50% of last coupon payment
70 to 80 Years Elighible 5 Years After 10th interest payment 50% of last coupon payment
80 Years and above Elighible 4 Years After 8th interest payment 50% of last coupon payment