RBI Floating Rate Savings Bonds 2020 (Taxable) – Terms & Conditions

• Declaration - I/We hereby declare and undertake that (i) the information furnished in this application form is correct and complete. If the transaction is delayed at all for reasons of incomplete or incorrect information, I would not hold the user institution responsible. (ii) I have read and understood the details of information for the investors as well as rights and duties of investors shared herewith. The agent/bank has explained the features of the scheme. (iii) I hereby agree to discharge the responsibility expected of me as a participant under the scheme.
• I understand that requests placed after 5:00 PM, and those placed on 2nd & 4th Saturdays, Sundays and other Bank Holidays as per Maharashtra State Government (including Bandhs) will be processed on next working day. The funds will be debited on placing the request, value date of the bond will be considered as per date of processing.
  
  It is recommended that online application be placed during working days / banking hours up to 5.00 PM, requests placed post 5.00 PM, bonds will be booked on the next working day.
  
  The Maharashtra Bank Holiday list can be referred in HDFC Bank website at the following path.
  https://www.hdfcbank.com/personal/resources/bank-holiday-list 
• Beneficiary Bank Accounts/ Address details  will be maintained at Bond Ledger Account level and not at the investment level. Customers who have made multiple investments, the beneficiary bank account numbers declared by the customers for the latest investment / bank mandate form will supersede the earlier account details provided.
• I confirm having read and understood that this application for RBI Bonds: Floating Rate Savings Bonds '2020 is not for availing Capital Gains Tax Exemption.
• As per Section 206AB of the Income Tax Act 1961, w.e.f 1st July 2021, a person shall be levied  higher TDS rate if they have:
  
  - Not filed Income Tax returns for the last two years; and
  - aggregate TDS/TCS credit of Rs. 50,000 or more in each of the two years.
  
  The TDS rate levied would be the highest of :
  a) Twice the rate specified in the relevant provision of the Income Tax Act; or
  b) Twice the rate of rates in force; or
  c) The rate of five per cent.
• Every person who has been allotted a Permanent Account Number (PAN) and is eligible to obtain Aadhaar number must update their Aadhaar number to the Income tax department (PAN- Aadhaar Linkage) as per Section 139AA of the Income Tax Act 1961. PAN - Aadhaar linking deadline is extended till 30^th June 23 subject to applicable provisions of the Income Tax Authority of India.
  
  Linking of these 2 documents will help you to:
  - Keep your PAN operative
  - Avoid levy of higher TDS on interest earned (if applicable)
  - Smooth functioning of banking transactions
• If you wish to avail TAX exemption for your interest / maturity payments of RBI Bonds, the valid exemption documents viz., 15G / 15H / Low Tax / No Tax documents to be made available in the banks records  at the start of each financial year or one month prior to the actual interest / maturity payment date. If the documents are submitted / received post cut off, the said document would be considered only for the next eligible interest / maturity payment during the same financial year. Physical exemption documents may please be submitted to our HDFC Bank Designated branches. The designated branch details are available in our HDFC bank website at the following path.
  
  https://www.hdfcbank.com/personal/invest/bonds-and-securities/savings-bonds 
  (Refer – List of RBI Application collection centre’s)
• The bonds will be issued subject to the terms & conditions laid down in Government of India Notification No.F No.4 (10) – V(W&M)/2020 dated June 26, 2020.
• It is strongly recommended that the nomination option is filled up in order to avoid inconvenience later.
• A sole holder or all the joint holders may nominate one or more nominees to the rights of the bonds, Non-resident Indians can also be nominated.
• The investor(s) can make separate nomination for each investment held under the BLA.
  •  Nomination facility is not available in case the investment is on behalf of the minor.
  • Application should be complete in all respects.
  •  Incomplete applications may be rejected or delayed till full particulars are available.
  • The certificate of Holding will be issued in physical / electronic form within 7 working days from the date of tender of application.
  • Any change of address should be notified to the receiving office immediately.
  • Any information regarding tax applicability may be provided to the Bank/Branch.
  • The interest on bonds is payable semi – annually with resetting of coupon rate every 01 January and 01 July with last instalment on date of redemption.
  • The interest on the bond accrues from the date of receipt of fund/realization and will be credited to bank account of the holder directly, as per the details provided by him/her at the time of application.
  • Post maturity interest is not payable on these bonds. The interest and redemption proceeds will be credited on the due date as per bank details registered with us.
  • Maturity intimation advice will be issued one month before the due date of the bond.
  • The redemption is due on expiry of seven years from the date of investment, unless applied for premature redemption as applicable.
  • Premature redemption is allowed with certain conditions as laid down in Government of India Notification No.F No.4 (10) – V(W&M)/2020 dated June 26, 2020.
  • In case of closure/transfer of the bank account, the fresh details may be immediately intimated to the receiving office to avoid any inconvenience.
    
    

Duties of Investor/Applicants

1. Please complete the application in all respects.
2. Incomplete applications are liable to result in delay of issue of the bonds (at the cost of the applicant).
3. In case the application is submitted by a Power of Attorney (POA) holder, please submit original POA for verification, along with an attested copy for record.
4. In case the application is on behalf of a minor, please submit the original birth certificate from the School or Municipal Authorities for verification, together with an attested copy for record.
5. Please note that nomination facility is available to a Sole Holder or all the joint holders (investors) of the bonds.
6. In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed.
7. Nomination facility is not available in case the investment is in the name of a minor.
8. Please notify the change of address to Receiving Office immediately.
9. POST MATURITY INTEREST IS NOT PAYABLE ON THESE BONDS. The interest and redemption proceeds will be credited on the due date as per bank details registered with us. (J) Indicate your date of birth / age.
10. Provide your correct bank account details for receiving payment through electronic mode. In case of closure/transfer of the bank account, the fresh details may be immediately intimated to the Receiving Office to avoid any inconvenience.
11. Any information regarding tax applicability may be provided to the bank/branch.
    
    

Rights of the Investor

1. The Certificate of Holding will be issued in electronic form within 7 working days from the date of tender of application.
2. The interest on the bond accrues from the date of receipt of funds/realization of cheque/draft and will be credited to the bank account of the holder directly, as per the details provided by him/her in the application form.
3. The interest will be paid semi-annually and credited to the investors account every 01 January and 01 July with last instalment on date of redemption.
4. Maturity intimation advice will be issued one month before the due date of the bond.
5. Application forms for investments, redemption, nomination etc., in respect of Savings Bonds shall be available on the websites of Receiving Offices.
6. A sole holder or all the joint holders may nominate one or more nominees to the rights of the bonds.Nonresident Indians can also be nominated.
7. The investor(s) can make separate nomination for each investment held under the BLA.
8. The nomination will be registered at the Office of Issue and an acknowledgement of Registration will be issued to the holder.
   1. The nomination can be varied by registering a fresh nomination.
   2. The existing nomination can be cancelled by a request to the Office of Issue.
   3. The redemption is due on expiry of seven years from the date of investment, unless applied for premature redemption as applicable.
   4. Premature redemption facility is allowed with certain conditions.
   5. Investors are entitled for compensation for delayed payments at the applicable coupon rate.