To buy government bonds, common investors can open a Retail Direct Gilt RDG account with RBI. These bonds are government securities G-Sec. Gold bond prices are linked to gold prices.
These bonds can be kept till maturity and can earn interest from time to time. If investors wish, they can also sell the bond before maturity. These bonds are issued by the central and state governments, so the risk of risk is very less. Know what has been announced now?
RBI Governor Shaktikanta Das while giving information about the decisions of MPC
Said in his speech that RBI is going to launch mobile app in Retail Direct. Besides, a mobile app for GILT Invest will also be launched.
>>At present, an account for this scheme can be opened through a portal of RBI. For this, an OTP is sent to the investor’s mobile number or email.
>The investor must have an account in a bank for this. To open an account, it is necessary to have a PAN number.
>>Also, there must be a valid document such as driving license, voter ID card or Aadhaar. NRIs can also invest in this bond. People who want to invest in bonds can make payment through net banking or UPI.
>> Tax benefits will not be available on government bonds. Just as the facility of tax exemption is available on small savings schemes such as Public Provident Fund or NPS.
>>Same facility will not be available on government bonds. The interest earned on government bonds will have to be taxed as per the slab.
>> If you buy such bonds through mutual funds, you may have to pay additional tax. Interest income from bonds and mutual funds will be added and tax will be charged accordingly. However, no tax will be levied until it is redeemed.
>> Through this system of RBI, bonds up to Rs 5 crore can be purchased. Bonds worth less than this can also be purchased. In this segment, the Reserve Bank has set a limit of Rs 10,000 for retail investors at which the minimum bond can be purchased. This bond of RBI can be sold before maturity.
>>The bonds issued by the government are called government bonds. If seen from the investor’s point of view, bonds are considered very safe. Especially government bonds are very safe. The reason is that these have a government guarantee.
>>The bond of the company is secured according to its financial position. This means that if the financial position of the company is solid then its bond will also be safe. If the financial condition of the company is not good then its bonds are not considered good in terms of security.
>>The bond of the company is called corporate bond. Interest is paid on the bond at a pre-determined rate. This is called coupon. Since the interest rate of the bond is already fixed, it is also called a fixed rate instrument. This interest rate is fixed during the tenure of the bond. There is no change in this.
