The government of India has launched of Floating Rate Savings Bonds, 2020 (Taxable) with an interest rate of 7.15 per cent. The bonds will be available for subscription from July 1, 2020 onwards. Individuals (including Joint Holdings) and Hindu Undivided Families (HUF) are eligible to invest in these bonds. NRIs cannot invest in these bonds.
Daily Current Affairs Quiz 2020
Key-Points
There will be no maximum limit for investment in the bonds. The minimum investment starts from Rs 1,000 and in multiples of Rs 1,000, thereof.
The new scheme has been brought in place of 7.75 per cent Savings (Taxable) Bonds, 2018, which was withdrawn from the close of banking business on May 28, 2020,
The interest on the seven-year bond will be paid semi-annually on January 1 and July 1 every year.
The interest on January 1, 2021 will be paid at 7.15 per cent. The rate for next half-year will be reset every six months, the first reset being on January 1, 2021.
The bonds will be repaid on the expiry of seven years from the date of issue. However, premature redemption will be allowed for specified categories of senior citizens.
The interest on the Bonds will be taxable under the Income Tax Act, 1961.
The Reserve Bank of India (RBI) will be issuing the bonds on behalf of the government.
The Bonds could be held by a person resident in India and a Hindu Undivided Family (HUF).
The bonds shall be repayable on the expiration of seven years from the date of issue.
