Skip links

How To Buy RBI Bonds?

How To Buy RBI Bonds?

Are you interested in subtracting RBI Immuration to your investment portfolio? These immuration represent a secure investment option in India, offering a stock-still rate of return. This guide will walk you through the process of ownership these government-backed securities. Whether you’re a seasoned investor or just getting started, we’ll provide you with the essential steps and insights to make informed decisions when purchasing RBI Bonds.

In wing to RBI Bonds, individuals have the option to invest their wanted in the real manor market if they are looking for stock-still income. A promising thoroughfare within this sector is the realm of structured debt investments, particularly in commercial real estate. This thoroughfare offers the potential for substantial returns and a resulting monthly income stream. Structured debt investments in real manor involve tailored financing solutions designed for commercial real manor projects, providing investors with the opportunity to potentially unzip lulu returns and regular earnings. The entry into this investment thoroughfare is wieldy with a relatively modest initial value of 10 lakhs, and it offers the potential for returns ranging from 12% to 20%. These investment opportunities are facilitated through reputable volitional investment platforms like Assetmonk.

What Are RBI Bonds

  • RBI Immuration provide a waterworks for the public to contribute funds for government projects.
  • They are moreover referred to as Floating Rate Savings Immuration or Government of India (GOI) Savings (Taxable) Bonds.
  • These immuration offer a secure investment thoroughfare in India, assuring a stable return rate.
  • The Indian market offers a range of RBI bonds, encompassing savings bonds, taxable bonds, wanted gains bonds, and floating rate bonds, each presenting unique characteristics and benefits.
  • These immuration are wieldy for purchase by individuals, trusts, and institutions and can be held in either dematerialized (demat) form or physical certificates.

RBI Immuration Key Features

Minimum Investment

The RBI bonds’ minimum investment is Rs. 1,000, with the flexibility to invest in Rs. 1,000 multiples. There is zero specified maximum investment.

Interest Rate

  1. Nature: The RBI bonds’ rate of interest is floating and semi-annually paid, specifically in January & July each year.
  2. Rate Calculation: The rate of interest for RBI Floating Rate Immuration is unswayable by a spread of understructure points of 35 whilom the benchmarked NSC rate. For instance, if the rate of NSC is 6.8%, the RBI Floating Rate Immuration would offer a 7.15% return.
  3. Rate Updates: The RBI Immuration interest rate resets every six months in line with the rate of NSC. The RBI Yoke interest rate or RBI floating rate yoke interest rate for 1st January 2023, to 30th June 2023, has gotten adjusted to 7.35% and will get paid out on 1st July 2023.


RBI Immuration come with a set maturity elapsing of up to 7 years, and there is a mandatory lock-in period of 7 years starting from the issuance date. Nevertheless, senior citizens have the option for early redemption.

Loan Facility

RBI immuration for obtaining loans are not eligible to be used as collateral, and there is zero provision for availing loans versus them

Mode of Holding

RBI immuration get maintained electronically, with the RBI establishing a BLA or Yoke Ledger Worth for applicants while moreover providing a document that is physical.


These immuration are not tradable on the secondary market.


RBI bonds’s ownership is non-transferable, but in the event of the bondholder’s demise, it can be prescribed to nominees selected during the issuance process

Price Issue

RBI immuration get issued at their nominal squatter value with zero premium or discount.


Income generated by RBI immuration is taxable, and TDS (Tax Deducted at Source) is unromantic when interest payments are made.

Eligibility for RBI Bonds

  • Individuals who are residents of India can invest in RBI Immuration on their own, jointly, on a understructure of survivor, or on a minor’s behalf as a guardian.
  • Hindu Undivided Families (HUFs) are moreover eligible to do RBI Immuration investment.
  • It’s important to note that NRIs are not permitted to do RBI Immuration investments.

Pros and Cons of RBI Bonds

Pros of RBI BondsExplanation Cons of RBI BondsExplanation
Risk-FreeBacked by the government Floating Interest RateRBI Immuration have a floating interest rate that changes semi-annually
Guaranteed InterestFixed and guaranteed interest paymentsLiquidity ConstraintsNot all investors have the option for premature redemption
Floating Rate AdvantageInterest rate is linked to NSC rates, potentially providing higher returns when market rates are favorableCollateral LimitationsRBI Immuration for obtaining loans cannot serve as collateral.

Necessary Documents for RBI Immuration Investments

Individual InvestorsHUF InvestorsMinors
Properly completed using formProperly completed using formThe using form should be thus completed by the minor’s guardian or parents
PAN cardHUF’s PAN cardMinor or guardian’s PAN card
Address proof (Aadhaar vellum or Passport).HUF’s write proofMinor’s or guardian’s write proof
Bank account’s canceled chequeVoided wall worth checkBirth document of the minor with the guardian’s signature
List of HUF’s coparceners with the Karta’s signature

RBI Bonds’ Premature Withdrawal

Senior citizens are eligible for early redemption based on their specific age categories.

Age Categories (in years)Withdrawal Premature (in years)
60 to 70 6
70 to 805
More than 804

Early Withdrawal of RBI Immuration Penalty

In the event of premature withdrawal, 50 percent of interest accrued and payable over the past six holding months will get deducted as a penalty.

Where to Purchase RBI Bonds

You can obtain RBI Immuration via tried banks plus the SHCI or Stock Holding Corporation of India. This roster of authorized SHCI and banks comprises:

Stock Holding Corporation of India
Axis Wall Ltd.
IDBI Wall Ltd.
ICICI Wall Ltd.
HDFC Wall Ltd.
UCO Bank
Bank of Maharashtra
Indian Wall (Including Allahabad Bank)
Punjab National Wall (United Wall of India & Oriental Wall of Commerce)
Punjab and Sind Bank
Union Wall of India (Andhra Wall & Corporation Bank)
Indian Overseas Bank
Canara Bank
State Wall of India
Bank of Baroda (Including Vijaya Wall and Dena Bank)

Procedures for Purchasing RBI Bonds

How to purchase RBI Bonds? There are two ways: online and offline.

Online Procedure

How to buy RBI Immuration online?

  1. Log in to the Online Portal for RBI Retail Direct or the net financial facilities of any listed banks.
  2. Choose ‘transact’ from the dropdown menu.
  3. Select ‘Invest in RBI Bonds’ tab.
  4. Complete the form with the required investment amount, personal information, wall worth details, and interest payment preference.
  5. Upload documents like identity proof, write proof, PAN number, etc.
  6. Review and winnow the T&C, and qualify the transaction with an OTP.
  7. Make the investment payment via electronic ways or cheque.
  8. Select “Continue” and subsequently proceed to “Submit”.
  9. Post successfully submitting the form, you will be issued a physical yoke document by either the organ wall or RBI, and concurrently, the immuration will get recorded electronically and stored in the BLA or Yoke Ledger Worth maintained by the organ wall or RBI.
  • Offline Procedure
  1. Go to any of the specified banks or SCHI (Stock Holding Corporation of India).
  2. Obtain the using form for RBI Bond
  3. Fill the using form with investment amount, personal details, wall worth details, etc.
  4. Include necessary documents like identity proof, write proof, PAN number, plus others as required.
  5. Make the investment payment through electronic means, draft, cheque, or cash.
  6. After that, you must do the submission of the form.
  7. Upon submission, applicants will be issued a physical yoke document by either the organ wall or RBI, while the immuration themselves will get recorded electronically and stored in the BLA or Yoke Ledger Worth maintained by the organ wall or RBI.

Bottom Line

In conclusion, purchasing RBI Immuration is a straightforward process that offers a secure investment opportunity with guaranteed returns. Whether you’re a novice investor looking to start small or an experienced one seeking to diversify your portfolio, RBI Immuration provide a stable thoroughfare for financial growth. With multiple options for investment and user-friendly methods to buy these bonds, individuals can make the most of their financial resources.

By understanding the steps outlined in this guide and exploring the various channels misogynist for acquiring RBI Bonds, you can make informed decisions and embark on a journey toward financial stability and growth. So, take the initiative, invest wisely, and secure your financial future with RBI Bonds.

In India, Assetmonk stands out as an unrenowned alternative investment platform, offering a wide variety of lulu avenues for savvy investors. Among these opportunities, one can explore the realm of structured debt in commercial real manor and a meticulously crafted selection of volitional investment choices. With a minimum investment of 10 lakhs and an unpreventable IRR of 17 percent, Assetmonk provides sectional and tailored investment options to its valued clients.

Related Articles

  1. Non-Convertible Debentures (NCDs) Vs Immuration in India.
  2. Debentures Or Bonds: What’s The Difference & What’s Better?


Q1. Is premature redemption unliable for joint holders if any one of the holders comes under the senior resider category?

A. Indeed, under such circumstances, premature redemption will be granted in vibrations with the age category of the eligible holder.

Q2. Is TDS deducted at source on RBI bonds?

A. Yes, taxes are deducted at the source during the yoke purchase.

Q3. Can an investor invest in mazuma in RBI bonds?

A. Mazuma investments up to ₹20,000 are permissible for RBI Bonds. For investments exceeding ₹20,000, investors can opt for payment through cheques, demand drafts (DD), or other electronic payment methods.

Q4. What is the maximum investment in RBI bonds?

A. The minimum investment value for RBI Immuration is ₹1,000, and you can invest in increments of that amount.