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RBI Floating Rate Bonds, 2020 (Taxable) – FRSB 2020 (T)

Issued by the Govt. of India via GoI Notification F.No.4(10)-B(W&M)/2020 dated June 26, 2020 with effect from July 1 st , 2020.


  • 100% Risk-Free investment from the Govt. of India
  • Maximum limit: No limit; Minimum investment: Rs.1,000 & multiples of Rs.1,000
  • Bond tenure: 7 years; Premature withdrawal available for senior citizens
  • Interest payable semi-annually: July 1 st & January 1 st
  • Suitable for conservative investors looking for assured returns from a risk-free investment

Key Features

    Sovereign guarantee :

    Bonds are issued by Reserve Bank of India on behalf of the Govt. of India & ICRA.

    Investment Amount :

    The minimum investment is Rs.1,000 and multiples thereof; No upper limit on the maximum investment.

    Interest Rate :

    ▪ Linked/pegged with the prevailing National Saving Certificate (NSC) rate with spread of (+) 35 bps over the respective NSC rate.

    ▪ The interest rate is reset half-yearly on January 1 & July 1 st for the next 6 months.

    ▪ The interest rate for the period January 01, 2024 to June 30, 2024 and payable on July 1, 2024 will be 8.05% (7.70% + 0.35% = 8.05%).

    ▪ Interest will be compulsorily paid out every 6 months; no cumulative option is available.

    Maturity :

    7 years from date of investment with premature withdrawal options for senior citizens.


    ▪ Bonds cannot be traded in the secondary market.

    ▪ Bonds cannot be transferred to anyone during the tenure of the bond.

    ▪ Loan facility is not available on these bonds.


    ▪ Form ‘C’ with wet signatures has to be submitted at the nearest branch of SHCIL.

    ▪ Nomination can be done by sole holders or joint holders.

    ▪ Non-Resident Indian (NRI) can also be nominated.

    ▪ No nomination can be made in respect of Bonds issued in the name of a minor.

    Tax Treatment:

    Tax will be deducted at source (TDS) while making interest payment on the bonds.

Key Benefits

Highest Safety

Issued by Reserve Bank on India on behalf of the Govt. of India; Carries Sovereign risk.

High Interest Rate

Interest rate is linked to the prevailing NSC rate with spread of +35 bps. The current interest rate is 8.05%.

Early Withdrawal

Senior citizens in age bracket of 60 years onwards are eligible for premature encashment

Eligible Investors

  • Individuals (not being a Non-Resident Indian)
    • His or her individual capacity
    • Individual capacity on joint basis
    • Individual capacity on anyone or survivor basis
    • On behalf of minor as father / mother / legal guardian
  • Hindu Undivided Family (HUF)

Premature Encashment for Senior Citizens

The following minimum lock-in period from date of issue will be applicable as per the investor’s age bracket:

Age Bracket Lock-in Period
60 – 70 years 6 years
70 – 80 years 5 years
80 years & above 4 years

Process To Invest

We are currently offering the online mode of investing into these Bonds through the online portal of Stock Holding Corp. of India (SHCIL).
The portal can be accessed through the following link: Click here
After completing the login formalities through PAN & Aadhaar verification, you need to confirm your demographic and communication details.
Post that, the system will ask to Select Nearest Stockholding Branch:
From the dropdown provided, please select Parel Branch for Nearest Stockholding Branch.
The system will then ask for the BA Code:
Pls mention 121711 as the BA Code.
These two inputs are IMPORTANT so we can track your application and handle any servicing concerns.
Detailed walk-through of the investment portal is attached below to help you smoothly navigate through the entire process.
Walk Through For Client - Fresh Investment_FRSB, 2020.pdf

The Bonds will be issued only in electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office of SHCIL (as authorized by the RBI). A Certificate of Holding (COH) will be issued to the holder/s of the Bonds as proof of subscription.

The nomination form can be downloaded from here . It needs to be submitted at the nearest branch of SHCIL along with a photocopy of the Certificate of Holding (COH).