The Government of India notifies the issue of Floating Rate Savings Bonds, 2020 (Taxable); Short Name: FRSB, 2020 with effect from July 01st 2020.
Features of the bonds:
| Minimum Investment amount: | Rs. 1,000 (Face value) in multiples thereof. |
| Maximum Investment amount: | No maximum limit. |
Tenure & Maturity Period: | 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens.* |
Rate of Interest: | · Interest on the bonds is payable semi-annually on 1st Jan and 1st July every year. · Coupon on 1st January 2021 shall be paid at 7.15%. · The Interest rate for next half-year will be reset every six months, the first reset being on January 01, 2021. · No option to pay interest on a cumulative basis. |
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. |
| Risk Attached: | 100% risk free investment option. |
Mode of issue & holding: | A Certificate of Holding will be issued to the holder/s of Bonds held to the credit in Bonds Ledger Account (BLA). |
| Collateral Facility: | Not Available. |
| Overall Liquidity: | Not tradable. |
| Date of Issue: | Date of realization of the funds/ Chq/ Draft. |
| Transferability: | Not Transferable |
Tradability /Advances | Not tradable in the secondary market and not be eligible as collateral for loans from banks, Financial Institutions and Non-Banking Financial Company (NBFC) etc. |
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