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Minimum Investment
1000/-
Rate of Interest
8.05
(till 30th June 2024)
Issuer
RBI on behalf of Govt. of India
Tenure
7 years
Interest Payout Freq.
Semi Annual
Interest Payout Date
Jan 1 and July 1

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.

  • Need Help?

    Call on the mobile number given below for any related help

    9350316010

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

Eligibility Criteria for RBI Floating Rate Bonds

RBI Floating Rate Bonds are available only to individuals over 18 and Hindu Undivided Families (HUFs). You can start investing with just ₹1,000, and there's no upper limit. These bonds are perfect for all types of investors. Invest in RBI Floating Rate Bonds through RR Finance today and enjoy the security of government-backed returns.

Taxation of RBI Floating Rate Bond:

For investors seeking clarity on the taxation of RBI Floating Rate Bonds, it’s important to note that no TDS (Tax Deducted at Source) is deducted from the interest. Instead, the interest earned is taxed according to your income tax slab.

Visit our blog to learn about the What are RBI Floating Rate Bonds

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 Lock-in period
60 - 70 Years 6 Years
70 - 80 Years 5 Years
Beyond 80 Years 4 Years

Documents Required

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

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

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

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.

Blogs

04 April, 2023

Understanding RBI Floating Rate Bonds: Impact of NSC Interest Rate Hike on Returns

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06 April, 2023

RBI Savings Bonds: A Brief History

The Reserve Bank of India (RBI) is the central bank of India, responsible for formulating and implementing the country's monetary policy One of the many financial...

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27 jun, 2023

Maximizing Returns with RBI Floating Rate Bonds

Upcoming Positive Changes : We are pleased to inform you that effective from 1st July, 2023, the interest rate on RBI Floating Rate Bonds is set to rise...

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Authorised Arrangers

RR is an authorised marketing associate for RBI Floating Rate Bonds since their inception. RR is also among the top mobilizers of bonds in India. We have a pan-India presence through our network and offices.

RR Investors Capital Services Pvt. Ltd AMFI-registered Mutual Fund Distributor

ARN-0032 Validity 14-Mar-2027

Head Office - 4th floor, Indraprakash Building 21, Barakhamba Road, New Delhi – 110001

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* Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.


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