Government of India has announced to launch Floating Rate Savings Bonds, 2020 (Taxable) scheme commencing from July 01, 2020.
Floating Rate Savings Bonds, 2020 (Taxable)

Eligibility:

The Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families. NRIs are not eligible for making investments in these Bonds.

Issue Price:

• The Bonds will be issued at par i.e. at ₹ 100.00 per cent
• The Bonds will be issued for a minimum amount of ₹ 1000/- (face value) and in multiples thereof. Accordingly, the issue price, will be ₹ 1000/- for every ₹ 1,000/- (Nominal).
• The Bonds will be issued in demat form (Bond Ledger Account) only
• A certificate of holding will be issued to the customer as proof of subscription

Features:

The broad features of the scheme are given below:

• Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of SBI, Nationalised banks, IDBI Bank Ltd, Axis Bank Ltd, HDFC Bank Ltd and ICICI Bank Ltd.
• 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
• The Bonds will be issued in non-cumulative form only.
• There will be no maximum limit for investment in the Bonds.
• Income-tax: Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.
• Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth- tax Act, 1957.
• The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens.
• The Bonds are not tradeable in the Secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
• The interest on the bonds is payable semi-annually on 1st Jan and 1st July every year. The coupon on 1st January 2021 shall be paid at 7.15%. The Interest rate for next half-year will be reset every six months, the first reset being on January 01, 2021. There is no option to pay interest on cumulative basis.
• A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination