Floating Rate Saving Bond-2020(T)

Floating Rate Saving Bond-2020(T)
Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and maximum limit.
o The interest on the bonds is payable semi-annually on 1st Jan and 1st July every year. The coupon on 1st January 2022 shall be paid at 7.15%. The Interest rate for next half-year will be reset every six months, the first reset being on January 01, 2021. There is no option to pay interest on cumulative basis. o  The Bond will be issued for a minimum amount Rs.1000/-(face value) and in multiples thereof. Accordingly, the issue price will be Rs. 1000/- for every Rs.1000/-(Nominal) face value. No maximum limit for investment in the Bond.
Channel of Subscription/Opening of accounts: - Through authorised Branches only.
Salient features
o (a)Who can open:-
(i) A person resident in India.
a) in her or his individual capacity, or
b) in individual capacity on joint basis, or
c) in individual capacity on any one or survivor basis, or
d) on behalf of a minor as father/mother/legal guardian
ii) HUF
o (b)Deposit:-
(i) Minimum deposit shall be Rs. 1000 and maximum no limit.
o (c) Interest:-
(i) Interest shall be payable semi annually basis on 01Jan & 01 July every year.
o (d)Premature Closure:-
(i)  The facility of premature encashment of bonds is available to the eligible investors after Lock in period of 4, 5,   and     6 years in the age bracket of 80 years and above, between 70 to 80 years and 60 to 70 years respectively. 
(ii) An investor, desiring to avail of the facility of premature encashment, will have to submit documentary evidence in support of his/her date of birth to satisfaction of the Receiving Offices.
(iii)50% of interest due and payable for the last six months period of the holding period shall be recovered as penalty from the investor for premature encashment.
(iv)Partial encashment of amount invested on a single application is not permitted. The investor needs to submit a request letter for the full amount to be prematurely encashed
o (e)Account closure on maturity:-
(i) The Bond shall be repayable on expiry of 7 years from the date of subscription. No interest would accrue after the maturity of the Bond.
(ii)The payment of maturity proceed to the account holder account (as per details furnished by them) on due date of redemption.
Note:- As this is a Government of India Scheme, Customer are advised to visit  RBI/Govt. website for latest instructions/ modification in the scheme.