RBI Floating Rate Savings Bonds: Want to buy offline? Know how to apply

Want to invest in RBI Floating Rate Savings Bonds but prefer the offline route? Finding the right bank branch can be confusing, especially when an authorised bank tells you that it does not accept applications. A reader who faced this issue after approaching several banks wants to know where to submit the physical form, what documents are required and how the payment can be made.

Today's Q&A explains such details in response to a query by a reader.

Some of the designated public sector banks include SBI, PNB, Bank of India, Bank of Baroda and UCO Bank. Designated private sector banks include Axis Bank, ICICI Bank, HDFC Bank and IDBI Bank. Investors can also approach Stock Holding Corporation of India, which is authorised to accept applications for these bonds.

You do not necessarily need to have a bank account with the bank through which you apply for the bonds.

If a branch of an authorised bank does not accept applications, you can ask the bank for details of the designated branch where you can obtain and submit the physical application form.

Along with the duly filled-in physical application form, you need to submit basic KYC documents, including identity proof, address proof and a copy of your PAN card, which is mandatory. You also need to provide details of the bank account into which the interest and redemption proceeds will be credited.

The payment can be made through cash, cheque, demand draft or pay order. Cash payments exceeding ₹20,000 at one time are not accepted for these bonds.

Once the payment is credited and the application is processed, the branch will issue a certificate for the bonds allotted to you.