Through its website, RBI enables small-scale investors to subscribe to floating rate savings bonds. Read more here

 Through its website, RBI enables small-scale investors to subscribe to floating rate savings bonds. Read more here

By enabling private investors signed up to Floating Rate Savings Bonds (FRBs), 2020 (Taxable), the Reserve Bank of India (RBI) has increased the range of products available via its Retail Direct Portal.

"In its endeavour to expand the shopping cart of products accessible through its Retail Direct Portal, Reserve Bank of India, in partnership with the Government of India, permitted subscription to Floating Rate The savings obligations, 2020 (Taxable) – FRSB 2020 (T)," the RBI said in a statement.

Previously, retail investors had access to the Retail Direct link to invest in securities issued by the federal, state, and local governments as well as sovereign gold bonds.

Bonds may be purchased using cash (up to a maximum of $20,000), checks, drafts, or other electronic means.

Floating Rate Savings Bonds: What Are They?

The federal government issues FRSBs, which are interest-bearing, non-tradeable bonds that mature seven years from the date of issuance and are repayable at that time.

The official interest rate offered by the RBI is 8.05%, which is 35 basis points more than the NSC rate. The bonds' interest will be due every year on January 1 and July 1 at intervals of six months. Interest cannot be paid on a cumulative basis.

The Government of India has issued FRSBs, which are interest-bearing, non-tradeable bonds that mature after seven years from the date of issuance.

Concerning the RBI-Retail Direct Scheme:

On November 12th, 2021, Prime Minister Narendra Modi introduced the RBI-Retail Direct Scheme.

The program allows for the opening of Retail Direct Gilt accounts with the Reserve Bank of India via an online interface, allowing for the purchase of government securities on both the main and secondary markets.