The Reserve Bank of India (RBI) on June 30, 2020 issues an operational guideline for the Floating Rate Savings Bonds, 2020 (Taxable).
The followings are the operational guidelines:
1. Receiving Offices (RO’s) are authorised to receive the application form from the investors or the agents and this shall be filed in “Form-B”. The product should be made available by them as soon as possible.
2. The RO’s must make sure that the amount of remittance has been forwarded to the RBI, within three days of the realisation of the cheque, draft and receipts.
3. The nomination forms shall be examined by the branches and a register for the nomination forms shall be maintained.
4. The interest on the account shall be accrued from the date of the subscription.
5. Bonds can be repaid only after the 7 years of the bonds have finished. On the maturity of the bond, no interest shall be charged.
6. The bonds can be encashed prematurely on by people between the age of 70-80 years and 60-70 year, respectively. The bonds can be encashed prematurely after the lock in of 4, 5 or 6 years, respectively.
[Notification No: IDMD.CDD.No.3155/13.01.299/2019-20]
