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More about the bonds
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- The bonds are open to investment by individuals, including joint holdings and Hindu Undivided Families (HUFs). Non-resident Indians are not eligible to invest in these bonds.
- The bonds will be issued at par, that is, at Rs. 100 and would be issued for a minimum amount of and in multiples of Rs. 1,000.
- There will be no maximum limit for investment in the bonds.
- 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. The bonds will, however, be exempt from wealth tax under the Wealth Tax Act, 1957
- The bonds will have a maturity of seven years carrying interest at 7.75% per annum payable half-yearly.
- The cumulative value of Rs. 1,000 at the end of seven years will be Rs 1,703. The bonds are not transferable.
- 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 bonds will be on tap till further notice and issued in cumulative and non-cumulative forms,” according to a statement from the Centre.
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