RBI Bonds Investment
The Government of India has announced the launch of RBI Bonds, also known as Floating Rate Savings Bonds, 2020 (Taxable).
The Interest rate on RBI Bonds 2023 for the period January 1, 2023, to June 30, 2023, and payable on July 1, 2023, has been reset at 7.35% (7%+0.35%= 7.35%).
In this article, we are going to discuss “How to Invest in RBI Bonds?” through the various government banks.
Before we go deeper, Let’s look at the common features of the bonds.
Read How to Invest in Indian Bonds? What are Bonds? Types of Bonds?
- High-interest rate with the highest level of safety. Regular income at half early interval.
- Eligibility
- An Individual
(1) In his or her individual capacity or
(2) In individual capacity on a joint basis or
(3) In individual capacity on anyone or survivor basis or
(4) On behalf of a minor as father/mother/legal guardian. - A Hindu Undivided Family
- An Individual
- There will be no maximum limit for investment in the Bonds.
- Interest on the RBI Bonds will be taxable under the IT Act, 1961 as applicable according to the relevant tax status of the Bonds holder(s).
- 7 years tenure of the bond from the date of issue.
- Minimum Rs.1000/- and in multiples thereof.
- A nomination facility is available.
- The interest on the bonds will be payable at half-yearly intervals up to 30th June and 31st December.
- The bonds are non-transferable.
- The bonds are not tradable in the secondary market and are also not eligible as collateral for availing of loans.
- Unauthorized branches can mobilize applications and can send them to nearby authorized branches.
Also Read RBI Bonds 2021- Features | Benefits | Downside
Required Document
Individuals
- Duly filled in application form (Complete application forms with all pages in full, duly filled in from the investors)
- Self-attested PAN card copy of the investor
- Self-attested Address copy of the investor
- Canceled cheque leaf of the bank.
- No correction/alteration is allowed in the application.
HUF
- Duly filled in application form (Complete application forms with all pages in full, duly filled in by the Karta with stamp and signature)
- Self-attested PAN card copy of the HUF
- Self-attested Address copy of the HUF
- List of coparceners in the Hindu Undivided Family along with their signatures attested by Karta
Minors
- Duly filled in application form (Complete application forms with all pages in full, duly filled in from the Guardian)
- Self-attested PAN card copy of the minor / Guardian
- Self-attested Address copy of the minor / Guardian
- Birth Certificate of the minor attested by the Guardian
- In the case of POA, the Original POA is to be verified by the bank and certified as “Original Seen and Verified”.
Also Read RBI Bonds 2021 Calculator | Download Excel Calculator
How to Invest in RBI Bonds through BOB?
Time needed: 5 minutes
Follow the steps given below for How to Invest in RBI Bonds through BOB?
- Visit branch
Visit a BOB branch that offers a service for making RBI Bonds investments.
It does not matter if your account is with some other branch. Although, only selected branches offer this service. Therefore, it will be best to look at the authorized branches in advance.
Source-PNB - Application Form
Fill out the application form. After that, you will have to provide your BOB account number (Cancelled Cheque) along with KYC Documents (Id & Address proof as per Bank Guidelines).
Application to be done in physical mode only. However, bonds will be issued in Electronic form, held in the BLA i.e. Bond Ledger Account. BLA will be opened by the Receiving Office in the name of the holder(s). - Contribution for investment
The bonds can be bought through Cheques or Cash or Demand Draft
- Bond Ledger Account
These bonds have been issued since April 1st, 2003, and will be issued till further notice from the RBI through a notification.
The bonds will be held in the credit of the holder in the BLA.
New Ledger series with the prefix (TB) will be opened in the name of the issuer of the bonds.
In case an entity already has a BLA, all new issues of the bonds will be seen as a new investment under the BLA. - Acknowledgment slip.
Submit the form to the branch and collect the acknowledgment slip. However, RBI bonds will be issued in Electronic form,
- Interest on Bond
Interest on the Bond will be paid through TRANSFER/DD / NEFT etc. However, This is payable half-yearly on 1st January and 1st July every year.
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How to Invest in RBI Bonds through Punjab National Bank?
- Customer for the Bonds may be obtained from PNB Branch stating clearly the amount
and the full name and address. However, customers can download it from here also. - The customer should be accompanied by the mandatory payment in the form of cash or drafts or cheques as indicated in point number 3 below.
- Subscription to the Bonds will be in the form of Cash/Drafts/Cheques.
Cheques or drafts should be drawn in favor of the Receiving Office, specified in point number 4 below, and payable at the place where the applications are tendered. - Applications for the Bonds in the form of a Bond Ledger Account will be received at the nearest authorized branch.
- Subscriber(s) who have obtained exemption from tax under the relevant provisions of the IT Act, 1961, shall make a declaration to that effect in the application and submit a true copy of the certificate obtained from IT Authorities.
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Union Bank of India
The customer should follow the same above steps for investment in RBI bonds through UBI bank.
Canara Bank
The customer should follow the same above steps for investment in RBI bonds through Canara bank.
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Complaint
You may address your complaint to:
The Chief General Manager
Internal Debt Management Department
Reserve Bank of India, 23RD Floor
Central Office, Shahid Bhagat Singh Marg,
Mumbai-400 001
Maharashtra
E-Mail Id – Cgmidmd@Rbi.Org.In
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