Floating Rate Savings Bonds, 2020 (Taxable)

FRSBs are debt instruments issued by the Government of India launched with effect from 1st July 2020. Authorized branches are issuing FRSBs. The bonds provide periodic interest at floating rate every six months and are redeemable after seven years. The salient features of the scheme are as under:

Eligibility: Individuals including Joint Holdings and Hindu Undivided Families are eligible. NRIs are not eligible for making investments in these Bonds.

Amount of deposit: Minimum amount of investment/deposit is Rs. 1000/- and in multiples thereof. There is no upper limit for deposit / investment in bonds. Contribution to the bonds can be made in cash up to Rs. 20,000/- only.

Issuance of Bonds: Bonds shall be issued only in the electronic form called Bond Ledger Account (BLA). 

Nomination: Nomination facility is available with cancellation also.

Interest on deposit: The interest on the bonds is payable semi-annually on 1st January and 1st July every year. The ROI is decided by GOI half yearly. ROI  8.05 % per annum (01.01.2025 TO 30.06.2025)

Repayment/Tenure: The bonds shall be repayable on expiry of seven years from the date of subscription. Premature redemption is allowed to 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.