RBI Floating Rate Bonds with 7.15% Interest Rate #High_Interest_Rate_Govt-Bonds

RBI Floating Rate Bonds with 7.15% Interest Rate #High_Interest_Rate_Govt-Bonds. Floating Rate Savings Bonds 2020 (Taxable)Government of India has decided to launch Floating Rate Savings Bonds 2020 (Taxable)scheme, with effect from July 01, 2020 in terms of GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020. The terms and conditions of the issuance of the Bonds shall be as per the above GOI Notification. A copy of the Circular, Government Notification and Press Release with regard to this Scheme has been placed on RBI website 

RBI Floating Rate Bonds with 7.15% Interest Rate #High_Interest_Rate_Govt-Bonds

Subscription- Subscription to the bonds will be in the form of cash (upto `20,000/- only)/drafts/cheques or any electronic mode acceptable to the Receiving Office.3. Form of the Bonds - The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office. 

Interest (Floating)

(i) Option – The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. There is no option to pay interest on cumulative basis.

(ii)Rate – The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.

(iii)Base Rate –The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.

 Download the RBI Notification