Retail traders can subscribe to Floating Charge Financial savings Bonds through RBI portal

“In its endeavour to broaden the basket of merchandise provided via the Retail Direct Portal, Reserve Financial institution of India, in session with the Authorities of India, has enabled subscription to Floating Charge Financial savings Bonds, 2020 (Taxable) – FRSB 2020 (T),” the central financial institution stated in a press release.

Earlier, retail traders have been allowed to spend money on central authorities securities, treasury payments, state authorities securities, and sovereign gold bonds via the Retail Direct portal.

The subscription of bonds might be within the type of money (as much as ₹20,000 solely)/drafts/cheques or any digital mode.

What are Floating Charge Financial savings Bonds?

FRSBs are interest-bearing, non-tradeable bonds, issued by the central authorities, that are repayable on the expiration of seven years from the date of concern.

The RBI formally pays 35 foundation factors above the NSC fee, providing an 8.05% rate of interest. The curiosity on the bonds might be payable at half-yearly intervals on Jan 1st and July 1st yearly. There isn’t any choice to pay curiosity on a cumulative foundation.

FRSBs are interest-bearing, non-tradeable bonds, issued by the Authorities of India, that are repayable on the expiration of seven years from the date of concern.

About RBI-Retail Direct Scheme:

Prime Minister Narendra Modi launched the RBI-Retail Direct Scheme on 12 November 2021.

Underneath the scheme, particular person traders are permitted to open a Retail Direct Gilt account with the Reserve Financial institution of India, utilizing a web-based portal, via which investments in authorities Securities will be made in major and secondary markets.

“Thrilling information! Mint is now on WhatsApp Channels 🚀 Subscribe right this moment by clicking the hyperlink and keep up to date with the most recent monetary insights!” Click on right here!

Up to date: 24 Oct 2023, 08:51 AM IST