Current Context: The Government of India has introduced new Floating Rate Saving Bonds (FRSB), which is a taxable scheme in place of 7.75% Saving (Taxable ) Bonds 2018.
- The new introduction FRSB will be in effect from 1st July 2020.
- The initial 7.75% saving (Taxable) Bonds 2018 were ceased for subscription from the close of banking business recently.
- The FRSB Scheme is going to issue a floating rate, taxable saving bonds for an initial coupon of 7.15% payable on 1st Jan 2021.
- These bonds will be issued by Reserve Bank of India on behalf of Government of India.
- The FRSB scheme will work as an inflation hedge by saving the government from higher cost when rates are low.
- The minimum amount for this scheme will be Rs 1000 with no maximum limit. And the interest on these bonds will be payable semi-annually i.e. on 1st Jan and 1st July every year. The tenure for the bonds is 7 years.
Question:
Q.1 What is the minimum amount to be issued for Floating Rate Saving Bonds Taxable Scheme?
a. Rs 500
b. Rs 1000
c. Rs 100
d. Rs 5000
a. Rs 500
b. Rs 1000
c. Rs 100
d. Rs 5000
