Retail investors can buy Floating Rate Savings Bonds through RBI portal

Mumbai: The Reserve Bank on Monday said retail investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable) through its Retail Direct portal.

RBI-Retail Direct Scheme was launched by the Prime Minister on November 12, 2021. Under the scheme, individual investors are permitted to open a Retail Direct Gilt account with the Reserve Bank of India, using an online portal, through which investments in government Securities can be made in primary and secondary markets. The scheme has brought government securities within easy reach of retail investors by simplifying the process of investment.

”In its endeavour to expand the basket of products offered through the Retail Direct Portal, Reserve Bank of India, in consultation with the Government of India, has enabled subscription to Floating Rate Savings Bonds, 2020 (Taxable) – FRSB 2020 (T),” the central bank said in a statement.

FRSBs are interest-bearing, non-tradeable bonds, issued by the central government, which are repayable on the expiration of seven years from the date of issue.

Earlier, retail investors were allowed to invest in central government securities, treasury bills, state government securities and sovereign gold bonds through the Retail Direct portal.