RBI Bond

RBI Bond Floating Rate Savings Bonds 2020 (Taxable)


The Government of India launched the Floating Rate Savings Bonds, 2020 (Taxable) scheme on July 01, 2020 to enable Resident Indians/HUF to invest in a taxable bond, without any monetary ceiling. (View Report)

Details / Features of RBI Bond

 Item   Details   Remarks
1. Eligibility for Investment  The Bonds may be held by -
(i) a person resident in India,
(a) in her or his individual capacity, or
(b) in individual capacity on joint basis, or
(c) in individual capacity on any one or survivor basis, or
(d) on behalf of a minor as father/mother/legal guardian

(ii) a Hindu Undivided Family		 Non-Resident Indians (NRI)s are not eligible to invest in these bonds.
2. Form of the Bonds  Electronic form held in the Bond Ledger Account. Bond Ledger Account will be opened by the Receiving
Office in the name of investor/s.
3. Maturity period 7 years from the date of issuance. ---
4. Period  The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens. The Bonds shall be fully repayable upon expiration i.e after 7 (Seven) years from the date of issue. Premature redemption shall only be allowed for specified categories of senior citizens.
5. Limit of investment  Minimum ₹ 1000/- and in multiples of ₹ 1000/-. No maximum limit.
6.Floating Interest Rate & Reset Criteria (i) Interest is payable semi-annually from the date of issue of bonds, up
to 30th June / 31st December as the case may be, and thereafter
half-yearly for period ending 30th June and 31st December on 1st July
and 1st January respectively.
(ii) The coupon rate payable for next half-year would be reset on
1st January 2021 and thereafter, every 1st July and 1st January.

 

The coupon/interest of the bond will be reset half yearly based on National Savings Certificate (NSC) rate (Base rate) + 35bps.

Half-yearly interest is payable on 1st January / 1st July.

The coupon on 1st January 2021 shall be paid at 7.15%.

 
7.Tax treatment Income from the bonds is taxable. 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.
8.Transferability The bonds are not transferable. Transferability is limited to nominee(s)/legal heir in case of death of holder.
9.Tradability /Advances The bonds are not tradable in the secondary market and also not
eligible as collateral for availing loans.		 ---
10. Nomination A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination. ---
11. Date of Issue of bonds Date of receipt of subscription in cash (up to `20,000/- only), or date of
realization of cheque /draft/ funds.		 ---
12. Premature redemption Facility is available to the eligible investors after Lock in period of 4, 5,
and 6 years in the age bracket of 80 years and above, between 70 to
80 years and 60 to 70 years respectively		 Penalty charges @ 50% of last coupon payment.
13. Nomination Facility The sole Holder or all the joint holders may nominate one or more
persons as nominee in accordance with the provisions of the
Government Securities Act, 2006 (38 of 2006) and the Government
Securities Regulation, 2007, published in Part III, Section 4 of the
Gazette of India dated December 1, 2007.		 ---
14. Bank account It is mandatory for the investor/s to provide bank account details to
facilitate payment of interest /maturity value directly to his/her/their
bank account.		 ---

Forms

Documentation

Broker Name & Code to be entered in the form: HDFC SECURITIES LIMITED - 30433

Cheques should be made payable to HDFC Bank - RBI Floating Rate Savings Bond 2020

Individuals

  • Duly filled in application form (Complete application forms with all pages in full,duly filled in from the investors)
  • Self attested PAN card copy of the investor
  • Self attested Address copy of the investor
  • Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
  • No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor


HUF

  • Duly filled in application form (Complete application forms with all pages in full,duly filled in by the Karta with stamp and signature)
  • Self attested PAN card copy of the HUF
  • Self attested Address copy of the HUF
  • Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
  • No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the Karta
  • List of coparceners in the Hindu Undivided Family along with their signatures attested by Karta

 

Minors

  • Duly filled in application form (Complete application forms with all pages in full,duly filled in from the Guardian)
  • Self attested PAN card copy of the minor / Guardian
  • Self attested Address copy of the minor / Guardian
  • Birth Certificate of the minor attested by the Guardian
  • Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments
  • No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor.
  • In case of POA, Original POA to be verified by the bank and certified as "Original Seen and Verified".

 

 

How to Buy RBI Bond

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