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.

Premature closure/withdrawal

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Disclaimer

Premature closure is permissible as per below criteria:
- Age 60-70 years: After 6 years
- Age 70-80 years: After 5 years
- Age 80-90 years: After 4 years
In case of joint holders or more than two holders, any one holder can fulfil the condition
50% of the interest due and payable for the last six months period of the holding period shall be recovered as penalty from the investor, but redemption payment will be made on the following interest payment due date.

RBI - Floating Rate Savings Bond, 2020 (T)

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Frequently Asked Questions

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

How are the bonds issued?

What is the issue price?

What is the maturity period?

Whether interest is Taxable?