RBI BONDS
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RBI Bonds


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, The current series of the Bonds are RBI Floating Rate Savings Bond (2020). RBI Bonds are issued by the Government of India and are eligible to be held by the citizens of the country.

An Indian resident individual, major on behalf of minor, jointly, HUF can apply for RBI Bonds. A Non-Residents of India or NRIs are not eligible to invest in such bonds.

An individual can invest in these bonds only if one can lock-in the investment for 7 years. However, the lock-in condition is relaxed for senior citizens. For the investors in the age bracket of 60-70 years, 70-80 years and above 80 years, the lock-in period is 6,5 and 4 years respectively.

These bonds are highly profitable in nature and are safe and secure despite the lock in period. They are a Zero credit Risk Bonds.


Eligibility Investment Limit Maturity Interest Rate Tax treatment
Resident Individuals
(including Joint Holdings) and
Hindu Undivided Families (HUF). NRIs are not eligible to invest. 		Min - Rs 1,000 (Face value) in multiples thereof and no maximum limit. 7 years (lock-in-period) from the date of issue

60 – 70 years; lock-in-period of 6 years

70 – 80 years; lock-in-period of 5 years

80 years & above; lock-in-period of 4years. 		7.35% Half-yearly interest payouts (1st Jan & 1st July). Interest on the Bonds will be taxable under the IT Act, 1961 as applicable according to the relevant tax status of the Bonds holder.