Eligible investors- These bonds can be invested by individuals (including Joint Holdings) and Hindu Undivided Families. NRIs cannot make investments in these Bonds.
Issue Price- The Bonds will be issued at par i.e. at 100%. These bonds will be issued for a minimum amount of Rs 1000/- (face value) and in multiples thereof. The Bonds will be issued in demat form in Bond Ledger Account only.
Maturity- These 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.
Tradability-These bonds are not tradeable in the Secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
Transferability- An investor can not transfer RBI Floating Rate Savings Bond except transfer to a nominee/legal heir in case of death of holder of bond.
Interest rate-The interest on the bonds is payable semi-annually on 1st Jan and 1st July every year. The Interest rate for next half-year will be reset every six months. There is no option to pay interest on cumulative basis.
Benchmark rate-The interest rate is linked with prevailing National Saving Certificate (NSC) rate with a spread of 35 bps over respective NSC rate.
Tax Treatment-Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.
Subscription- Subscription to the bonds will be in the form of cash (upto Rs 20,000/- only)/drafts/cheques or any electronic mode acceptable to the Receiving Office.
