Floating Rate Savings Bonds FRSB 2020

Floating Rate Savings Bonds FRSB 2020

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.
Please call Mr Rahul Kapadia on +91 9819747686 for any further queries.
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