RBI Bonds
Issued by Government of India
-
7.15% Floating Rate Bonds, 2020
-
For Individuals & HUFs
Key Features
Instrument
7.15% Floating Rate Bonds, 2020
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.
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.
Interest Rate
Payable semi-annually on 1st Jan & 1st July every year. The coupon on 1st January 2021 shall be paid at 7.15%. The Interest rate for next half-year will be reset every six months, the first reset being on January 01, 2021.
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.*
Risk
100% Risk Free Investment option.
*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