The popular 7.75 % savings bonds, which were also known as GOI bonds or RBI bonds were withdrawn for subscription last month w.e.f 29 May 2020.
Come 1st July, the bonds are being re introduced in an entirely new avatar and will be called Floating Rate Savings Bonds 2020 (taxable).
Here are some of its main features –
- Any Indian resident can invest as an individual or as joint/either or survivor /minor with guardian. HUFs can invest too.
- These bonds will be issued only in electronic form and held in an account called the bond ledger account ( BLA) for the investor.
- These bonds are not transferable, except transfer to nominee or legal heir in the event of death of the investor.
- The coupon rate will be floating and pegged at the National Savings Certificate (NSC) rate + 0.35 %. It will be revised every 6 months on Jan 1 and July 1
- Coupon rate for the first subscription opening on July 1 2020 will be 7.15 % ( 6.80% + 0.35%)
- One can subscribe to these bonds through cheques/drafts/electronic mode and cash (only upto Rs 20,000)