How can a customer apply for RBI – Floating Rate Savings Bond, 2020 (Taxable)?

Via Kotak Net Banking: Log in to Net Banking > Investments tab > RBI bonds Visit the branch: By cash (up to Rs. 20,000), cheque or demand draft

How are the bonds issued?

RBI – Floating Rate Savings Bond, 2020 (Taxable) are issued in electronic form and is credited to the investor’s Bond Ledger Account (BLA) on the date of receipt of funds. A Certificate of Holding is issued to the customer as a proof of subscription. Online mode [Through Netbanking] - Login to netbanking > Investments > RBI bonds Offline mode [ Through Branch ]

What is the issue price?

RBI – Floating Rate Savings Bond, 2020 (Taxable) is issued at par or 100%, i.e. the bond amount will be exactly the amount paid. The bonds are issued at a minimum of Rs.1,000 and multiples thereof.

What is the maturity period?

RBI – Floating Rate Savings Bond, 2020 (Taxable) shall be repayable on the expiration of 7 years from the issue date. Interest will not be paid after the maturity of the same.

Whether interest is Taxable?

Interest on the RBI – Floating Rate Savings Bond, 2020 (Taxable) will be taxable under the Income Tax Act, 1961, as applicable according to the relevant tax status of the holders.