Floating Rate Savings Bond, 2020 (Taxable) – FRSB 2020


Salient Features

Highlights of the Scheme (FRSB-2020)

1 Eligibility The Bonds may be held by a person resident in India :
  • in her or his individual capacity.
  • in individual capacity on joint basis.
  • in individual capacity on any one or survivor basis.
  • on behalf of a minor as father / mother / legal guardian.
  • Hindu Undivided Family.
2 Deposit
  • Minimum Deposit- Rs.1000/- and in multiples of rs.1000/-.
  • Maximum Deposit- No Limit.
3 Duration 7 years from the date of issuance
4 Subscription Subscription to the bonds will be in the form of cash (upto 20,000/- only) / drafts / cheques or any electronic mode.
5 Rate of Interest (Floating)
  • Option - The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year. There is no option to pay interest on cumulative basis.
  • Rate - The coupon / interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July1st and Jan 1st. The coupon rate for first coupon period, payable on July 1, 2023 has been reset at 7.35%.
  • Base Rate - The coupon rate will be linked / pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
6 Tax Benefits Income from the bonds is taxable. Tax will be deducted at source while interest is paid (as per scheme guidelines).
7 Nomination The sole Holder or all the joint holders may nominate one or more person.
8 Premature Closure Available as per scheme guidelines
9 Others
  • The bonds are not transferable. Transferability is limited to nominee(s)/legal heir in case of death of holder.
  • The bonds are not tradable in the secondary market and also not eligible as collateral for availing loans.
10 Contact Us Government Services Section,
Government Services Wing
Head Office Annex., New Delhi- 110092,
Email – hogovtacs@canarabank.com
Contact No. - 011-20825020