Description

Among the various types of bonds to invest in, one of the most profound bonds is RBI Bonds. Introduced in the country in the year 2003, RBI Bonds are issued by the Government of India and are eligible to be held by the citizens of the country.

It is a good option if you are looking to get a regular income. You will get interest on your total investment every six months. Interest rate calculation – The RBI has decided to fix the interest rate on these RBI bonds to 0.35% above the prevailing NSC rate.

Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of agency banks and SHCIL in all numbering about 1600. The Bonds will be issued at par i.e. at Rs. 100.00 per cent. The Bonds will be issued for a minimum amount of Rs.

Though the tenor of the bond is 8 years, early encashment/redemption of the bond is allowed after fifth year from the date of issue on coupon payment dates. The bond will be tradable on Exchanges, if held in demat form.