RBI Bonds Scheme – GOI Saving Bonds | How to invest Detail 2018

By | January 30, 2018

RBI Bonds Scheme – GOI Saving Bonds | How to invest Detail 2018
The Reserve Bank of India on Wednesday notified the launch of 7.75% government savings bonds (taxable), which replaced the 8.00% government savings bond. The bonds will be available for sale from January 10, 2018.

 

The bonds will have a maturity of seven years. The 7.75% Savings (Taxable) Bonds scheme replaces the 8% Savings Bonds Scheme, also known as RBI Bonds Scheme, which was a preferred choice for those looking for a regular guaranteed income

 

The rate of return offered on the bonds is higher than that available for fixed deposits with banks. The interest would be payable half-yearly and the cumulative value of Rs 1,000 at the end of seven years will be Rs 1,703.
 

RBI Bonds Scheme  Who can invest?

The Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families. NRIs are not eligible for making investments in these Bonds.

How to Buy RBI Bonds Scheme ?

Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of agency banks and SHCIL in all numbering about 1600.

What is  Price of GOI Saving Bond ?

The Bonds will be issued at par i.e. at Rs 100, The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof. Accordingly, the issue price, will be Rs 1,000 for every Rs 1,000 (Nominal).

The Bonds will be issued in demat form (Bond Ledger Account) only.


What is Period of Saving bond of Government of India ?

The Bonds will be on tap till further notice and issued in cumulative and non-cumulative forms.

What is Limit of investment saving Bond of RBI ?

There will be no maximum limit for investment in the Bonds.


RBI Saving Bonds Tax treatment ?

 

Income-tax: Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.

 

Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth Tax Act, 1957.


What is Maturity time and rate of interest in GOI Bond ?

 

 The Bonds will have a maturity of 7 years carrying interest at 7.75 per cent per annum payable half- yearly. The cumulative value of Rs. 1,000 at the end of seven years will be Rs 1,703.

Transferability:
 The Bonds are not transferable.

The Bonds are not tradeable in the Secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.

Nomination: A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination

 

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