Maximizing Returns with RBI Floating Rate Bonds

RBI Floating Rate Bonds 2020

(Taxable)

RBI Floating Rate Savings Bonds 2020 (Taxable), also known as the GOI Bonds, currently offer a taxable interest rate of 8.05% (till 31st Dec 2023) over a seven-year term. They are called floating-rate bonds because the interest rate on these bonds is linked to the NSC rate. In accordance with the scheme guidelines issued on June 26, 2020, these floating rate bonds will continue to earn 0.35% higher ROI than the prevailing NSC rate. Coupon/Interest rate on these bonds is subject to change every six months, on January 1 and July 1, if NSC's ROI changes.

(For detailed Terms and Conditions, read the application form carefully)

Minimum Investment

1000/-

Rate of Interest

8.05
(till 31st Dec 2023)

Issuer

RBI on behalf of Govt. of India

Tenure

7 years

Interest Payout Freq.

Semi Annual

Interest Payout Date

Jan 1 and July 1

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How to Invest in RBI Floating Rate Bonds?

Download & fill Application form

Click below to download form
Download
Payment

Make cheque in favour of "HDFC Bank - RBI Floating Rate Savings Bond 2020"
Submit Application

Submit application to nearest RR office or call us on 9350316010 to arrange pickup.
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Why Invest in RBI Floating Rate Bonds?

Investment that is completely risk-free
Attractive ROI of 8.05%
Floating Interest Rate
Bonds will always pay 0.35% more than NSC rates
Interest payable semi-annually in Jan & Jul each year
Minimum Investment - Rs. 1000 (and in multiples thereof)
Maximum Investment - There Is No Limit
Nomination Facility Available
Maturity is 7 years from Investment date.
Premature withdrawal for Senior Citizens*
Not Tradable & not Transferable

Prematurity Withdrawal

The bonds will be repayable after the completion of 7 years. premature withdrawal is allowed only for those whose age is 60 years and above subject to the submission of documents relating to the date of birth proof.

Age Group	Lack-in period
60 - 70 Years	6 Years
70 - 80 Years	5 Years
Beyond 80 Years	4 Years

Documents Required

Duly filled in application form (Complete application form,duly filled in from the investors).
Self attested PAN card copy of the investor.
Self attested Address copy of the investor.
Cancelled Cheque leaf of the bank which was mentioned in application for interest and maturity payments.
No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor.

Duly filled in application form (Complete application form, duly filled in by the Karta with stamp and sign).
Self attested PAN card copy of the HUF.
Self attested Address copy of the HUF.
Cancelled cheque leaf of the bank which was mentioned in application for interest and maturity payments.
No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the Karta.
List of coparceners in the Hindu Undivided Family along with their signatures attested by Karta.

Duly filled in application form (Complete application form,duly filled in from the Guardian).
Self attested PAN card copy of the minor / Guardian.
Self attested Address copy of the minor / Guardian.
Birth Certificate of the minor attested by the Guardian.
Cancelled Cheque leaf of the bank which was mentioned in application for interest and maturity payments.
No correction / alteration allowed in the application and the corrections if any to be duly authenticated by the investor.
In case of POA, Original POA to be verified by the bank and certified as "Original Seen and Verified".

For RBI Floating Rate Bonds Scheme Details, click here

Frequently Asked Questions (FAQs)

Minimum ₹ 1000/- and in multiples of ₹ 1000/- thereafter and there is no maximum limit.

These bonds come up with a 7-years of tenure from the date of issue. After the bond matures, no interest will be paid. Premature redemption is permitted for investors aged 60 and up, according to the RBI Notification.

Interest is payable semi-annually from the date of bond issuance until the 30th June / 31st December, as applicable, and then half-yearly for periods ending on the 30th June and 31st December on the 1st July and 1st January, respectively.

The current rate of interest is 8.05% and subject to re-set half yearly every Jan 1st & July 1st, and will be compared to the prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 basis points over the respective NSC rate. All future coupons would be reset based on the NSC rate of interest fixation on January 1 and July 1.

The interest income earned from these bonds is taxable. TDS (Tax Deducted at Source) is deducted at the time of interest payment in accordance with IT regulations.

These bonds cannot be used as collateral for loans from banks, financial institutions, or non-banking companies.

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