RBI Bonds

Issued by Government of India

  • 7.75% Savings (Taxable) Bonds, 2018

  • For Individuals & HUFs

Key Features


7.75% Savings (Taxable) Bond, 2018

Who can Invest?

  • Resident Individuals (including Joint Holdings) and Hindu Undivided Families (HUF).

  • NRIs are not eligible to invest.

Minimum Amount

Rs 1,000 (Face value) in multiples thereof

Maximum Amount

 No maximum limit.


100% Risk Free Investment option.

Tax Treatment

The interest earned under this scheme is taxable under the Income Tax Act, 1961, according to the relevant tax status of the Bondholder.

Maturity/ Repayment of Principal

7 years (lock-in-period) from the date of issue. Premature encasement shall be allowed to individuals who are 60 years and above subject to minimum lock-in-period.*

Interest rate Option Available

  • Non-cumulative option: Half-yearly interest payouts (1st Aug & 1st Feb) of Rs 38.75 per Rs 1,000 Face value

  • Cumulative option: Cumulative value of Rs 1,000 at the end of seven years will be Rs 1,703 (based on half-yearly compounding)


  • Non-cumulative option: At the time of making payment to investors.

  • Cumulative option: On the interest portion, at the time of payment of the maturity proceeds.

*Premature encashment for senior citizens:

Age bracket: 60 – 70 years; lock-in-period of 6 years from the date of issue Age bracket: 70 – 80 years; lock-in-period of 5 years from the date of issue Age bracket: 80 years & above; lock-in-period of 4 years from the date of issue

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