About:
• The new scheme has been brought in place of 7.75 per cent Savings (Taxable) Bonds, 2018, which was withdrawn from the close of banking business on May 28, 2020,
• The interest on the seven-year bond will be paid semi-annually on January 1 and July 1 every year.
• The interest on January 1, 2021 will be paid at 7.15 per cent. The rate for next half-year will be reset every six months, the first reset being on January 1, 2021.
• The bonds will be repaid on the expiry of seven years from the date of issue. However, premature redemption will be allowed for specified categories of senior citizens.
• The interest on the Bonds will be taxable under the Income Tax Act, 1961.
• The Reserve Bank of India (RBI) will be issuing the bonds on behalf of the government.
• The Bonds could be held by a person resident in India and a Hindu Undivided Family (HUF).
