Government of India has decided to launch Floating Rate Savings Bonds 2020 (Taxable) scheme, with effect from July 01, 2020 in terms of GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020. The terms and conditions of the issuance of the Bonds shall be as per the above GOI Notification. A copy of the Circular, Government Notification and Press Release with regard to this Scheme has been placed on RBI website. The salient features of the Bond are detailed below.
1. Eligibility for Investment:The Bonds may be held by –
(i) A person resident in India,
(ii) A Hindu Undivided Family
Form of the Bonds – The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.
Receiving Offices – Any number of branches of State Bank of India, Nationalised Banks and four private sector banks, as specified in the Annexure 3 of the GoI Notification F.No.4 (10)-B (W&M) / 2020.
Nomination – Nomination and its cancellation shall be in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulation, 2007, published in Part III, Section 4 of the Gazette of India dated December 1, 2007.
Transferability – The Bonds held to the credit of Bond Ledger Account (BLA) of an investor shall not be transferable, except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.
7. Interest (Floating) –
9. Operational Guidelines – With a view to facilitate availability of all the operative instructions regarding servicing of these bonds at one place, consolidated operational guidelines will be issued shortly and placed on the RBI website.
10. All other terms and conditions specified in the notification of Government of India issued by the Ministry of Finance (Department of Economic Affairs) vide Notification F.No.4(2)-W&M / 2018 dated March 27, 2018 shall apply to the Bonds.