Introduction to RBI bonds:

Among the various types of bonds to invest in, one of the most profound bonds is RBI Bonds. RBI Bonds are issued by the Government of India for raising funds for various governmental projects and plans. RBI bonds are an effective and highly profitable source of investment as these are safe and reliable than other sources of investment.

Various features of RBI bonds:

• The investor should be a resident of the country (India) and only individuals and HUF are allowed to invest in RBI Bonds. NRIs are not allowed to invest in such bonds.
• The maturity of an RBI bond is 7 years from the date of issuance, however one can demand a return at any point of time with a penalty. For investors in the age bracket of 60-70 years, 70-80 years and above 80 years, the lock-in period is 6,5 and 4 years respectively.
• Rate of interest for RBI Bonds is 7.15% currently, however interest rate is reset every 6 months on January 01 and July 01.
• The bonds can be acquired in the electronic form adhered to bond ledger account.