Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Latest Circulars »
Open DEMAT Account in 24 hrs
 RBI approves amalgamation of Indian branches of Emirates NBD Bank P.J.S.C. with RBL Bank Limited
 RBI approves amalgamation of Indian branches of Emirates NBD Bank P.J.S.C. with RBL Bank Limited
 Reserve Bank of India (All India Financial Institutions (AIFIs) – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026
 Master Circular - Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
 Section 42(1) of the Reserve Bank of India Act, 1934 - Change in Daily Minimum Cash Reserve Maintenance Requirement
 RBI announces special window for Public Sector Oil Marketing Companies to meet dollar requirements
 RBI issues Amendment Directions on 'Standardised Approach for Counterparty Credit Risk (SA-CCR)’
 Monetary Policy Statement, 2026-27 Resolution of the Monetary Policy Committee October 5 to 7, 2026
 Preserving Financial Stability in an Evolving World - Special Address by Shri Sanjay Malhotra, Governor, Reserve Bank of India, at the Fifth Kautilya Economic Conclave on October 3, 2026
 India’s External Debt as at the end of June 2026
 RBI Bulletin – September 2026

RBI-Floating Rate Savings Bonds 2020 (Taxable)
June, 29th 2020

RBI/2019-2020/261
IDMD.CDD.No.3145/13.01.299/2019-20

June 26, 2020

The Chairman & Managing Director
State Bank of India & 11 Nationalised Banks
Axis Bank Ltd., ICICI Bank Ltd.,
HDFC Bank Ltd., IDBI Bank Ltd.

Dear Sir/Madam,

Floating Rate Savings Bonds 2020 (Taxable)

Government of India has decided to launch Floating Rate Savings Bonds 2020 (Taxable) scheme, with effect from July 01, 2020 in terms of GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020. The terms and conditions of the issuance of the Bonds shall be as per the above GOI Notification. A copy of the Circular, Government Notification and Press Release with regard to this Scheme has been placed on RBI website. The salient features of the Bond are detailed below.

1. Eligibility for Investment: The Bonds may be held by -

(i) a person resident in India,

  1. in her or his individual capacity, or

  2. in individual capacity on joint basis, or

  3. in individual capacity on any one or survivor basis, or

  4. on behalf of a minor as father/mother/legal guardian

(ii) a Hindu Undivided Family

2. Subscription - Subscription to the bonds will be in the form of cash (upto ₹20,000/- only)/drafts/cheques or any electronic mode acceptable to the Receiving Office.

3. Form of the Bonds - The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.

4. Receiving Offices - Any number of branches of State Bank of India, Nationalised Banks and four private sector banks, as specified in the Annexure 3 of the GoI Notification F.No.4(10)-B(W&M)/2020.

5. Nomination – Nomination and its cancellation shall be in accordance with the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities Regulation, 2007, published in Part III, Section 4 of the Gazette of India dated December 1, 2007.

6. Transferability - The Bonds held to the credit of Bond Ledger Account (BLA) of an investor shall not be transferable, except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.

7. Interest (Floating) –

(i) Option – The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. There is no option to pay interest on cumulative basis.

(ii) Rate – The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.

(iii) Base Rate – The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.

8. Brokerage - Brokerage at the rate of 0.5% of the amount mobilized will be paid to the Receiving Offices, and they shall share at least 50% of the brokerage so received with brokers/sub brokers registered with them, on the applications tendered by them and bearing their stamp, on behalf of their clients.

9. Operational Guidelines – With a view to facilitate availability of all the operative instructions regarding servicing of these bonds at one place, consolidated operational guidelines will be issued shortly and placed on the RBI website.

10. All other terms and conditions specified in the notification of Government of India issued by the Ministry of Finance (Department of Economic Affairs) vide Notification F.No.4(2)-W&M/2018 dated March 27, 2018 shall apply to the Bonds.

Yours faithfully,

(T. K. Rajan)
Chief General Manager

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting