Govt of India announces new Savings Bonds

The Government of India on Thursday announced to launch 7.75 percent savings bonds to enable resident citizens and Hindu Undivided Families (HUF) to invest in a taxable bond, without any monetary ceiling. NRIs are however not eligible for making investments in these Bonds.

These Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families (HUFs).Bonds will be issued at par i.e. at Rs.100.00. Bonds will be issued for a minimum amount of Rs.1,000/- (face value) and in multiples thereof. Accordingly, issue price will be Rs.1,000/- for every Rs.1,000/- (Nominal). Bonds will be issued in demat form (Bond Ledger Account) only.