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How to Invest in RBI Bonds? | Interest Rate 2022 | Online | Application form | Floating Rate Savings Bonds

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RBI Bonds Online & Offline

RBI Bonds are issued by the Reserve Bank of India with an interest rate of 7.15% (compounded, payable half-yearly).
These bonds are also known as Government of India Savings (Taxable) Bonds. This article aims to explain the process to apply for RBI Bonds Online & Offline.

Also Read RBI Bonds 2022- Features | Advantage, and Disadvantage

  • 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
  • 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.
  • 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).

If you are thinking of guaranteed income options, these bonds may fit in your portfolio and may assist you to create income ladders to supply a stream of income in the future.

What is RBI Bonds Interest Rate in 2022?

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The Bonds come with a floating rate of interest that is reset every 6 months.
The Interest rate on RBI Bonds 2022 for the period July 1, 2022, to December 31, 2022, and payable on January 1, 2023, remains at 7.15% (6.80%+0.35%= 7.15%), unchanged from the previous half-year.

Also Read RBI IINSS-C Bonds Inflation Indexed National Savings Securities-Cumulative

Where Can I Buy RBI Bonds?

You can buy RBI Bonds from designated branches of SBI, Nationalised banks, 4 Private Sector banks, and Stock Holding Corporation of India Ltd.

  • State Bank of India
  • Bank of Baroda
    (Including Vijaya Bank and Dena Bank)
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank (Including Syndicate Bank)
  • Central Bank of India
  • Indian Bank (Including Allahabad Bank)
  • Indian Overseas Bank
  • Punjab National Bank (including Oriental Bank of Commerce and
    United Bank of India)
  • Punjab & Sind Bank
  • Union Bank of India (including Andhra Bank and Corporation
    Bank)
  • UCO Bank
  • HDFC Bank Ltd.
  • ICICI Bank Ltd.
  • IDBI Bank Ltd.
  • Axis Bank Ltd.
  • RBI RDG Account

Also Read RBI Bonds 2022 Calculator | Download Excel Calculator

Few Things to Look at Before Buying Bonds

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Firstly, RBI bonds are not eligible for trading in the secondary market in India and can’t be used as a guarantee for loans from banks or financial institutions.
Secondly, A only holder or an only surviving holder of a bond, being an individual, can make a nomination.
Thirdly, and most importantly, The bonds in the form of BLA shall not be transferable except transferred to a nominee (s) in case of death of the bondholder.

Also Read Government Bonds India – A Detailed Guide for 2022

RBI Bonds for Senior Citizens

Special privilege has been given to senior citizens in this bond,
They may take a premature exit after 4, 5, and 6 years based on age group.
Otherwise, the interest due for the six months immediately preceding the exit is deducted, in case someone takes the premature exit.

Age GroupPremature Redemption
80 years and above4 Year
Between 70 to
80 years
5 Year
60 to 70 years6 Year

Also Read Senior Citizen: Top 4 Risk-Free Saving Schemes with Best Comparison

RBI Bonds 2022 Online Purchase

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An investor can buy these bonds online from the banks, However, few of them banks offer online services.
Let’s check how to purchase bonds online (RBI RDG account, ICICI Bank & IDBI Bank).

Also Read Sovereign Gold Bond SBI | How to Buy SGB Online? 

1. RBI Retail Direct Online Portal

The retail Direct scheme is a one-stop solution to facilitate investment in Government Securities by Individual Investors. Under this scheme, Individual Retail investors can open a Gilt Securities Account – “Retail Direct Gilt (RDG)” Account with the RBI.
No fee will be charged for opening and maintaining a ‘Retail Direct Gilt account’ with RBI. No fee will be charged by the aggregator for submitting bids in the primary auctions. Fee for payment gateway etc., as applicable, will be borne by the registered investor.

Read How to Invest in RBI Bonds using RBI Retail Direct Gilt (RBI RDG Account) portal

2. ICICI Bank

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Time needed: 5 minutes.

Follow the steps given below for applying RBI bonds online using ICICI Net-banking

  1. Login

    Visit the ICICI Bank website and log in using your ICICI credential.

  2. Invest Online

    Go to the “Investment and Insurance” option and then select the “Invest Online” option.

  3. Floating Rate Savings Bonds

    Click on “Invest Now”.

  4. Select your account number

    In the next screen, select the account number from which you wish to apply and enter the investment amount along with the nomination option.

  5. Verify the personal details & enter the nominee information.

    Account holder details will be auto-filled.

  6. Terms and Conditions

    Check the “terms and conditions” box and authorize the transaction using the OTP.

Also Read How to Buy Sovereign gold Bond from ICICI Bank or ICICI Direct?

3. IDBI Bank

If you are an IDBI Bank customer, you can apply for the same through internet banking.
Or else, you may visit any of the branches with KYC (Know Your Customer) and submit the application form.

  1. Visit the IDBI Bank website and log in using your IDBI credential.
  2. Go to Menu > Service Request > New Request > Other services.

Also Read RBI Bonds 2022 vs Tax Saving Fixed Deposits vs Sovereign Gold Bonds

4. HDFC Bank

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Here are the steps to apply RBI Bonds via HDFC Netbanking Account

Login to HDFC Netbanking

Please use this URL to log in with your credentials: https://netbanking.hdfcbank.com.

Click on Transact Option

Under account, tab chooses to Transact and scroll down. At the bottom, you will find Invest in RBI Bonds option.

Fill unfilled Columns

It will be a pre-filled online application form with most of your details already filled in. You are required to just input the amount, mother’s maiden name, and nomination facility if any. After that, click on the continue button

Confirm your details

Please verify the details entered in the application form if all is okay. Then tick the terms and condition box as Yes.

Click on Continue and verify OTP.

Post clicking on Confirm, you will receive an OTP on your registered number. Further, enter the OTP and your money will be debited from your account resulting in investment in RBI Bonds.

RBI Bonds Application Form

Let’s check how to purchase bonds offline.

Bank NameAuthorized BranchesForm
SBI BankDownloadDownload
Axis Bank LtdDownloadDownload

Also Read How to Invest in RBI Bonds through BOB, PNB, UBI & Canara Bank? 

Download Application Form for Other Banks

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Also Read SBI Bank Pension Plan – ADS | NPS | APY | Special Term Deposit

FAQs

What is the date of payment of Interest for RBI Bonds?

Interest to the subscriber opting will be paid from the date of issue up to 30th June or 31st December as the case may be, and thereafter half-yearly for the period ending 30th June and 31st December on 1st July and 1st January.

What will be the mode of payment of half-yearly interest for these Bonds to the investors?

Interest on Bonds held to the credit of the Bonds Ledger Account of an investor will be paid, electronically by credit to the bank account of the subscriber as per the option exercised by the investor.

Whether premature exit is permitted for joint account holders if any of the individuals are above 60 years of age.?

Yes. In the case of joint holders or more than 2 holders of the RBI Bond, the above lock-in period will be applicable even if any one of the holders fulfills the above conditions of eligibility.

Penalty for premature withdrawal

The 50 percent of the interest due and payable for the last 6 months of the holding period will be recovered in such cases,

How the Tax is deducted at the Source?

Tax will be deducted at the source while making payments from time to time.

Whether interest is Taxable?

Interest on the Bonds will be taxable under the IT Act, 1961 as applicable according to the relevant tax status of the Bondholders.

Whether I can transfer the Bonds?

The RBI Bonds held to the credit of the Bonds Ledger Account of an investor shall not be transferable.

Source – RBI, HDFC,ICICI Bank

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