Bonds & Fixed IncomeOpen for FY 2026-27

RBI Floating Rate Savings Bonds 2020 (Taxable)

Government of India, issued through the Reserve Bank of India

The Government of India's own savings bond: sovereign, with a coupon that floats 0.35% above the National Savings Certificate rate and resets every six months.

8.05%

p.a., reset every six months

7 years

tenor

₹1,000

minimum, no upper limit

Sovereign

Government of India

How to invest through Sanriya

Download the application form below and print it on A4 paper.

Attach a self-attested PAN copy, address proof and one cancelled cheque; HUF applicants also attach the Karta declaration.

Investment is accepted through designated banks: we prepare the file, check it against the filled sample, and walk it through the bank leg with you.

Interest lands in your bank account every 1 January and 1 July; we diarise the half-yearly resets for your reviews.

Worth knowing first

Current interest: 8.05% p.a. (NSC rate + 0.35%)
Interest payout: Half-yearly: 1 January and 1 July
Rate reset: Every six months, against the NSC base rate
Minimum investment: ₹1,000, no upper limit
Tenor: 7 years from the date of issue
Safety: Sovereign: direct obligation of the Government of India

Interest is taxable under the Income Tax Act, 1961 and subject to TDS: eligible investors can submit Form 15G (or 15H for senior citizens) to receive interest without deduction.

The bonds are non-transferable and non-negotiable, and cannot be used as collateral for loans.

Premature redemption is available only to senior citizens, with a lock-in graded by age and a penalty of 50% of the last coupon payment.

Interest is paid out: there is no cumulative option, which makes the bond a natural income instrument for retirees.

The term sheet

RBI Floating Rate Savings Bonds are an excellent long-term fixed-income investment. The Government of India has started offering Floating Rate Savings Bonds (Taxable) 2020 to residents of India and HUF to invest in a bond with no money cap as.(The old 7.75 % RBI Savings Bond 2018 was replaced by this RBI Floating Rate Savings Bond 2020.). Even if it is subject to resetting every six months, they are currently yielding a return of around 8.05%. Given the present low interest-rate scenario, it is a good investment. It may also be a good choice for those hoping for a regular income. The coupon on these bonds is paid out every six months. As such, it could be a suitable alternative for a fixed-income investor.

Features & Benefits of RBI 8.05% Floating Rate Savings Bond 2020 (Taxable):-

Take a print of the Application Form on A4 paper size. (You need to carry your own printed form; application forms are not available at deposition centers)

Type of Bond: 8.05% RBI Floating Rate Savings Bonds (Taxable) 2020
What is Investment Period?: 7 years from the date of issue.
Current Coupon (% p.a.)/ Interest Rate, i.e. Floating Interest Rate.: 8.05% p.a., i.e. based on National Savings Certificate (NSC) rate (Base rate) + 35bps (7.70% + 0.35%)
What is Interest payable and reset criteria?: Payable on 1st Jan 2021. The coupon/interest of the bond will be reset half yearly based on the NSC rate (Base rate) + 35bps. Half-yearly interest is payable on 1st January / 1st July.
Issue Opens on: 01.07.2020
What is Safety?: RBI issues GOI bonds. They are sovereign & absolutely safe,100% risk-free investments.
Minimum Investment Rs.: Rs. 1000/-
Maximum Investment Rs.: No maximum limit on investment.
What will be Taxation?: Interest from RBI Floating Rate Savings Bonds investments is Taxable, Income Tax Act 1961. The bonds will be exempt from wealth tax under the Wealth Tax Act 1957.
Form of the Bonds: Application to be done in physical mode. Bonds will be issued electronically and held in the bond ledger account (BLA). The Receiving Office will open BLA in the name of the investor/s.
Transferability: The Bonds are non-transferable and non-negotiable and cannot be offered as security for any loan or advance. Transferability is limited to the nominee(s)/legal heir in case of death of the holder.
Maturity / Redemption AMT (Rs. Per bond): The maturity amount will be credited directly to Investors Bank A/c. There is no need to surrender the Bond Certificate.
Cheque / Draft to be drawn in the name of: “HDFC Bank RBI Floating Rate Saving Bond 2020”
Interest payment Mode: Interest payment will be made by NEFT / RTGS etc.
Need to open new/separate bank a/c or demat a/c: New or separate bank or demat account is not require for RBI Floating Rate Savings Bonds 2020, Any Bank cheque can be use for investments. Demat A/c is not required for investments.
Is a Premature redemption/withdrawal facility available?: Yes, allowed subject to penalty charges equivalent to 50% of the last coupon/interest payment:for investors in the age bracket of 60 to 70 years after 6 years,for investors in the age group of 70-80 after 5 years and for investors in the age exceeding 80 years would be 4 years from the date of issue.
Who is eligible to invest in RBI Floating Rate Savings Bond 2020?: An Individual (not being a Non-Resident Indian)In his or her individual capacity orIn individual capacity on a joint basis orIn individual capacity on anyone or survivor basis orOn behalf of a minor as father/mother/legal guardianA Hindu Undivided Family
Who is NOT eligible to invest in RBI Floating Rate Savings Bond 2020?: The following are not eligible to invest in RBI Floating Rate Savings Bonds:- Non-Resident Individuals (NRI) / Banks / Sole Proprietorship / Partnership Firms / LLP / Companies including group companies / Family trusts / Charitable and Religious Trusts, / Association of Persons, / Co-operative Societies, etc.
Application Form Submission Center: Application can be submitted in few appointed banks branches only. (check your location in the list below)

Forms & downloads

Application formPDF · RBI (GoI) Floating Rate Savings Bonds 2020 (Taxable)

Filled sample formPDF · refer and avoid mistakes

HUF declaration by KartaPDF · required for HUF applications

Form 15G / 15H: TDS declarationsOfficial Income Tax Department downloads

Rates and issue terms are as published by the issuer for the current series and are revised from time to time. Always confirm the live rate on the application form before investing. Interest is taxable as per the Income Tax Act, 1961; tax treatment depends on individual circumstances.

Submitting the form

Take a print of the application form on A4 paper, attach the documents below, and submit it to us or to any listed bank branch.

Self-attested photocopy of the applicant's PAN card

Self-attested Aadhaar Card and Address Proof Photo Copy

If the application is submitted by a Power of Attorney holder, please submit the original POA along with an attested copy for verification.

If you are submitting an application on behalf of a minor, please provide an attested copy also of the original birth certificate from the school or municipal authorities.

One Cancelled Cheque (for ECS/RTGS/NEFT payment of Interest/Maturity Amount.)

Cheque or DD (payable in Pune) should be made payable to “HDFC Bank RBI Floating Rate Saving Bond 2020”.

Keep a copy of your application form for your records. (282347 – Supriya K) should be entered as the broker code.

Please send us an image / soft copy/photocopy of your application on what app (no. 9175193456 / 9175937625) before submitting it to see whether something is wrong or needs to be corrected.

Submit/deposit your application form at any of the Listed/Designated Bank branches. (See the attached list below and search for your city.)

If your location is not included in the list below, you must send the Application Form along with the above documents to the following address by registered post or courier:- Sanriya Finvest Services Kamdhenu, 2nd Floor, Opp. Prakash Bhavan, Next to Bank of Baroda, Near Chattushringi Temple, above Tribes India, Senapati Bapat Rd, Shivajinagar, Pune, Maharashtra 411016, Mobile No: 9175193456 / 9175937625 We will notify you upon receipt of your submission, verify everything and update you accordingly if anything is pending; submit your form, and send you an acknowledgement.

You should carry properly filled application forms to the submission centres; submission centres only accept forms and provide acknowledgement.

The Acknowledgement copy will suffice as evidence of your investment.

A Bond Certificate will be issued within 15 days (working) from the date of cheque realization.*

To record and track the status/allotment of your application form, send us the image / soft copy/photocopy on Mobile No 9175193456 / 9175937625 (Whats app)

The Application Number would be entered by the bank.

Home Service available Pune*.

Documents required

Individuals

1] Duly filled in application form (Complete application forms with all pages in full, duly filled in from the investors)
2] Self-attested PAN card copy of the investor
3] Self-attested Aadhaar Card / Address proof copy of the investor
4] Cancelled cheque leaf of the bank, which was mentioned in the application for interest and maturity payments
5] No correction/alteration is allowed in the application, and the corrections, if any, are to be duly authenticated by the investor

Minors

1] Duly filled in application form (Complete application forms with all pages in full, duly filled in from the Guardian)
2] Self-attested PAN card copy of the minor / Guardian
3] Self-attested Aadhaar Card / Address copy of the minor / Guardian
4] Birth Certificate of the minor attested by the Guardian
5] Cancelled cheque leaf of the bank, which was mentioned in the application for interest and maturity payments
6] No correction/alteration is allowed in the application, and the corrections must be duly authenticated by the investor.
7] In the case of POA, the Original POA is to be verified by the bank and certified as “Original Seen and Verified”.

HUF

1] Duly filled in application form (Complete application forms with all pages in full, duly filled in by the Karta with stamp and signature)
2] Self-attested PAN card copy of the HUF
3] Self-attested Address copy of the HUF
4] Self-attested Bank Statement of the HUF
5] Cancelled cheque leaf of the bank, which was mentioned in the application for interest and maturity payments
6] No correction/alteration allowed in the application, and the corrections, if an, are to be duly authenticated by the Karta
7] List of coparceners in the Hindu Undivided Family, along with their signatures attested by Karta

Submission centres across India

Questions investors ask

The Government of India has declared that Floating Rate Savings Bonds (Taxable) 2020 will be issued effective from July 1, 2020, allowing resident citizens and HUFs to invest in a taxable bond without any monetary cap. The Reserve Bank of India (RBI) is a government-owned corporation that issues bonds.…
Bonds issued as a Bond Ledger Account are not transferable except to a nominee(s)/legal heirs in the event of the bondholder's death.
Only the Non-cumulative option is available – The coupon on the notes is paid semi-annually on the first of January and the first of July each year.
The Bonds will be sold for a minimum face value of Rs. 1000/- and multiples of that number. There would be no limit to the maximum amount that can be invested in Bonds.
The bond has a 7-year term from the date it was issued. No interest will accrue after the maturity of the bond.
Yes, there is a nominating system in place.
The interest earned on the bonds is taxed. According to the current IT rules, TDS is deducted at the time of interest payment.
The bond's coupon/interest will be reset every six months, on July 1st and January 1st, beginning on January 1st, 2021. The coupon rate will be linked/pegged to the current National Saving Certificate (NSC) rate with a spread of (+) 35 basis points over the respective NSC rate. There is no option to pay interest on a cumulative basis. As a result, the coupon rate for July 1 to December 31, 2023, payable on January 1, 2024, is 8.05 % (7.70% +0.35%).
The interest on your Saving Bonds will be credited to your bank account directly.
Since the invested amount will be automatically transferred to the investor's bank account on the maturity date, no interest will be paid after maturity.
The Bonds will not be tradable in the secondary market and will not be used as collateral for loans from banks, financial institutions, or non-banking financial companies.
A] Premature encashment of the Bonds shall be allowed for individual investors 60 years and older, subject to the submission of documents relating to the investor's date of birth in support of age to the satisfaction of the issuing bank, after the minimum lock-in period as shown below:: a. The lock-in period for investors aged 60 to 70 years will be 6 years from the date of issue. b. The lock-in period for investors aged 70 to 80 years will be 5 years from the date of issue. c. The lock-in period for investors aged 80 and over is 4 years from the date of issue. B] In the case of joint holders or more than two holders of the Bond, the above lock-in period will apply even though either of the holders meets the above eligibility criteria. C] After the above minimum lock-in period from the date of issue, a qualifying investor may surrender the bonds at any time after the 12th, 10th, and 8th half years corresponding to the respective lock-in periods, but redemption payment will be made on the following interest payment due date. Every year, the effective dates of premature encashment for qualifying investors will be July 1st and January 1st. Penalty charges @ 50% of last coupon/interest payment for RBI Floating Rate Savings Bond 2020 (Taxable).
Non-resident Indians (NRIs) are not permitted to invest in these bonds.
HUF are eligible to invest in these bonds.
Since they are released by the RBI, they are also fully risk-free. As a result, it is a good choice for investors and could be suitable when interest rates are low and likely to increase. You also still get NSC + 35 bps.
RBI Floating Rate Savings Bond 2020 is available to buy now. You can buy it now.
Forms are available online at https://sanriya.in/bonds/, and deposit physical form to any bank branch in India (35 Branches)
The RBI Floating Rate Savings Bond 2020 is now also available to buy. Please call or text us at +91 9175193456 / 9175937625, and we will assist you in investing in these bonds. You can also visit www.sanriya.in. You can also call us for RBI Floating Rate Savings Bond Investment services all India.

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