Who Can Invest? Individual, HUF, University & Charitable Trust
Minimum/Maximum Investment Rs.1000/-& in multiples thereof. No upper limit.
Period of investments 6 years
Interest payable Non Cumulative, payable Half Yearly – on 1stFebruary & 1st August. In case of Cumulative option, interest payable on maturity.
Tax Benefit Wealth Tax is exempted. Income Tax will be deducted at source while interest is paid.
Forms of Bonds Bond Ledger Account (BAL).
Date of Issue of Bonds Date of receipt of subscription in Cash or date of realization of cheque/draft.
Bank Mandate It is mandatory for the investors to provide Bank account details to facilitate payment of interest/maturity value.
Nomination Facility Available – can nominate one or more person as nominee. NRI can be also nominated. However, remittance of the interest/maturity proceeds will be subject to Foreign Exchange regulations prevailing at the time of remittance. Minor also can be nominated.
Transferability The Bonds are not tradable/transferable. However, the Bonds shall be eligible as collateral for loans, to creat pledge, hypothecation or lien in favour of scheduled bank for loans against the security of the bonds.
Option of schemes Non cumulative/ Cumulative. Change of option is not permitted.