How can a customer apply for RBI – Floating Rate Savings Bond, 2020 (Taxable)?

Via Kotak Net Banking: Log in to Net Banking > Investments tab > RBI bonds Visit the branch: By cash (up to Rs. 20,000), cheque or demand draft

How are the bonds issued?

RBI – Floating Rate Savings Bond, 2020 (Taxable) are issued in electronic form and is credited to the investor’s Bond Ledger Account (BLA) on the date of receipt of funds. A Certificate of Holding is issued to the customer as a proof of subscription. Online mode [Through Netbanking] - Login to netbanking > Investments > RBI bonds Offline mode [ Through Branch ]

What is the issue price?

RBI – Floating Rate Savings Bond, 2020 (Taxable) is issued at par or 100%, i.e. the bond amount will be exactly the amount paid. The bonds are issued at a minimum of Rs.1,000 and multiples thereof.

What is the maturity period?

RBI – Floating Rate Savings Bond, 2020 (Taxable) shall be repayable on the expiration of 7 years from the issue date. Interest will not be paid after the maturity of the same.

Whether interest is Taxable?

Interest on the RBI – Floating Rate Savings Bond, 2020 (Taxable) will be taxable under the Income Tax Act, 1961, as applicable according to the relevant tax status of the holders.

RBI Bonds

Kotak Bank offers RBI - Floating Rate Savings Bond 2020 (Taxable) [RBI - FRSB 2020 (T)].

RBI-FRSB 2020 (T) was introduced by the Government of India on July 1, 2020. The interest rate of the bond is linked to National Savings Certificate (NSC) rate as on 1^st Jan and 1^st July with a spread of (+) 35 bps over the respective NSC rate.

Features of RBI - FRSB 2020 (T)