{"id":16198,"date":"2023-10-24T03:21:26","date_gmt":"2023-10-23T21:51:26","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=16198"},"modified":"2025-04-04T07:40:44","modified_gmt":"2025-04-04T02:10:44","slug":"frsb","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/frsb\/","title":{"rendered":"Floating Rate Savings Bonds (FRSBs), 2020 (Taxable)"},"content":{"rendered":"<h2>About Floating Rate Savings Bonds (FRSBs), 2020 (Taxable)<\/h2>\n<ul>\n<li>It was\u00a0introduced by the Government of India\u00a0on July 1, 2020.\u00a0<\/li>\n<li>FRSBs are\u00a0interest-bearing, non-tradeable bonds\u00a0issued by the Government of India, which are\u00a0repayable on the expiration of seven years from the\u00a0date of issue.<\/li>\n<li>Eligibility: The bonds may be held by\n<ul>\n<li>A\u00a0person resident in India,\u00a0in her or his\u00a0individual capacity,\u00a0or in individual capacity\u00a0on a joint basis, or in individual capacity on any one or survivor basis, or on behalf of a minor as father\/mother\/legal guardian.<\/li>\n<li>A\u00a0Hindu undivided family.<\/li>\n<\/ul>\n<\/li>\n<li>Non-Resident Indians (NRI) are\u00a0not eligible to invest in these bonds.<\/li>\n<li>Minimum Subscription:\u00a0The bonds will be issued for a\u00a0minimum amount of Rs.\u00a01000 (face value) and in multiples thereof.<\/li>\n<li>Maximum Limit: There will be\u00a0no maximum limit for investment in the bonds.<\/li>\n<li>A\u00a0certificate of holding will be\u00a0issued to the customer\u00a0as proof of subscription.<\/li>\n<li>The bonds will be\u00a0issued only in the electronic form called the Bond Ledger Account (BLA).<\/li>\n<li>Contributions to the bonds\u00a0can be made in cash (upto \u20b920,000\/- only)\/ drafts\/cheques.<\/li>\n<li>Interest Rate:\n<ul>\n<li>The interest on the bonds is\u00a0payable semi-annually on 1st January and 1st July every year.\u00a0<\/li>\n<li>The interest rate of the bond would be\u00a0re-set half-yearly in sync with the coupon payment date.\u00a0<\/li>\n<li>It is\u00a0linked to the prevailing National Savings Certificate (NSC) rate\u00a0with a spread of (+) 35 bps over the respective NSC rate.\u00a0<\/li>\n<li>There is\u00a0no option to pay interest on a cumulative basis.<\/li>\n<\/ul>\n<\/li>\n<li>Repayment\/Tenure:\n<ul>\n<li>The bonds shall be repayable\u00a0on the expiration of 7 (Seven) years\u00a0from the date of issue.<\/li>\n<li>Premature redemption shall be\u00a0allowed for\u00a0specified\u00a0categories of\u00a0senior citizens.<\/li>\n<\/ul>\n<\/li>\n<li>Tax Treatment:\u00a0Interest received will be\u00a0taxable under the Income-tax Act, 1961, as amended from time to time\u00a0and as applicable according\u00a0to the relevant tax status of the Bond holder.<\/li>\n<li>Transferability: The Bonds held to the credit of Bond Ledger Account (BLA) of an investor\u00a0shall not be transferable,\u00a0except transfer to a nominee(s) legal heir\u00a0in case of the\u00a0death of the holder of the Bonds.<\/li>\n<li>Tradability \/Advances: The bonds shall not be tradable in the secondary market and shall\u00a0not be eligible as collateral for loans from banks, financial Institutions, and Non-Banking Financial Companies (NBFCs) etc.<\/li>\n<\/ul>\n<h2>Key Facts about RBI-Retail Direct Scheme<\/h2>\n<ul>\n<li>It was launched on November 12, 2021,\u00a0asa one-stop solution to\u00a0facilitate investment in Government Securities by individual investors.<\/li>\n<li>Under the scheme,\u00a0individual investors are\u00a0permitted to open a Retail Direct Gilt account with the RBI\u00a0using an online portal,\u00a0through\u00a0which investments\u00a0in government Securities can be made in primary and secondary markets.<\/li>\n<li>There are 4 kinds of government securities you can invest in through the RBI Retail Direct platform:\n<ul>\n<li>Government of India\u00a0Treasury Bills (T-Bills)<\/li>\n<li>Government of India\u00a0Dated Securities (Dated G-Sec or Government Bonds)<\/li>\n<li>State Development Loans (SDLs)<\/li>\n<li>Sovereign Gold Bonds\u00a0(SGB)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What are Bonds?<\/h3>\n<p>Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you&#8217;re giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments along the way, usually twice a year.<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/www.thehindubusinessline.com\/money-and-banking\/individual-investors-can-subscribe-to-floating-rate-savings-bonds-2020-taxable-under-rbis-retail-direct-portal\/article67452124.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Individual investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable), under RBI\u2019s Retail Direct Portal<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Floating Rate Savings Bonds are interest-bearing, non-tradeable bonds issued by the Government of India, which are repayable on the expiration of seven years from the date of issue.<\/p>\n","protected":false},"author":5,"featured_media":16199,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-16198","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=16198"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16198\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/16199"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=16198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=16198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=16198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}