Investing in bonds is considered a safe investment. So you should buy bonds.
For this we will see in this article today. How to buy bonds from RBI ? What are the required qualifications ?
Let’s see how to buy RBI bonds 2022
RBI bonds buy in two ways first is online and second offline.The Reserve Bank of India has issued RBI bonds with 7.15% interest compounded,also half-yearly interest rate payable.
These bonds are called Government of India Savings (Taxable) Bonds scheme.
The purpose of written this article is to explain the process of applying for RBI bonds both ways that online and offline.
What is the eligibility for RBI bonds
- A person in his personal capacity or On a joint basis or in individual capacity.
- Personal ability or on the basis of anyone or survivors.
- As a parent / legal guardian on behalf of a minor Hindu undivided family.
There are no restrictions on investing in bonds
- Tax Status As per the bondholder agreement, interest tax is applicable on RBI bonds under IT Act 1961.
- RBI bonds have a tenure of 7 years from the date of issue.Minimum Rs.1000 / – and many more😊
- Nomination facilities are available.
- Interest on the bond will be payable at half-yearly intervals between June 30 and December 31.
- The most important part is that bonds are not transferable.
Relevant Taxes on Bondholders Under the IT Act 1961, interest tax is levied on RBI bonds.
If you are considering guaranteed income options then these bonds will fit in your portfolio and can definitely help you build an income ladder to provide future income flow.
What is the interest rate on RBI bonds 2022
- Bonds change interest rates every 6 months.
- From 1 July 2021 to 31 December 2021, the interest rate on RBI bonds payable on 1 January 2022 will be 7.15%.
- There will be no change compared to the previous six months of the year.
Where can buy the RBI bonds
Many banks offer to buy RBI bonds.
Such as Nationalized Banks, Private Sector Banks and Stock Holding Corporation of India Ltd.
You can buy RBI bonds from designated branches in india.
Below is a list of some banks that offer to buy RBI bonds.
- State Bank of India
- Bank of Baroda ( Vijaya Bank and Dena Bank)
- Bank of India
- Bank of Maharashtra
- Canara Bank (Syndicate Bank)
- Central Bank of India
- Indian Bank ( Allahabad Bank)
- Indian Overseas Bank
- Punjab National Bank (Oriental Bank of Commerce and United Bank of India)
- Punjab and Sindh Bank
- Union Bank of India ( Aslo Including Andhra Bank And Corporation Bank)
- UCO Bank
- HDFC Bank
- ICICI Bank
- IDBI Bank
There are a few things to look for when buying bonds.
- RBI bonds are not eligible to trade in the secondary market in India and cannot be used as collateral for loans taken from banks as well as any financial institutions.
- The bonds holder is the only existing holder of the bond, being an individual may apply.
- This is most important, bonds in the form of BLA (Bond Ledger Account) cannot be transferred without transfer to the nominee in case of death of the owner.
RBI bond scheme for senior citizens
Special facilities are provided to senior citizens in bond scheme.
They can leave prematurely after 4, 5 and 6 years depending on the age group.
Otherwise the interest earned after six months prior to exit is deducted.
How to buy RBI Bonds 2022
There are many offers to buy bonds from online banks. Some of these banks are offering online services.
Let’s see how to buy bonds online (ICICI Bank and IDBI Bank).
ICIC BANK through
Visit ICICI Bank’s website and login using your ICICI credentials.
Go to following step
- Investment and Insurance option select and then select the next option Online Investment.
- Hold floating rate savings
- Click on Invest Now.
- Select your account number
- In the next screen, select the account number from which you want to apply and enter the investment amount along with the nomination option.
- Verify personal details and enter nominated information.
- Account holder details will be filled in automatically.
- Check the Terms and Conditions box and authorize the transaction using OTP.
Contact your nearest ICICI Bank branch for further details and application forms.
Click here to download Application Form
Click here to Apply now
IDBI BANK through
If you are a customer of IDBI Bank, you can apply for it through internet banking.
Or otherwise, you can submit the application by visiting any branch with KYC (Know Your Customer).
Visit the IDBI Bank website and login using your IDBI credentials.
- Go to Menu
- Service Request
- New Request
- Other Services
This way you can apply.
IDBI Flexi Bond Click here : https://www.idbibank.in/idbi-bank-investor-flexi-bonds.asp
SBI Bank : Download
HDFC Bank : Download
PNB Bank : Download
Download application for other banks.
Frequently asked questions
Who owns RBI ?
The government has appointed the RBI’s directors, and this has been the bank became fully owned by the government of India as outlined by the Reserve Bank of India.Every Directors are appointed by indian government for four years period.
Is RBI privately owned ?
Reserve Bank is fully owned by the Government of India become nationalisation in 1949.