Latest News
-
Black Friday For Market? Sensex & Nifty Decline For The 5th Straight Day Amidst Rising Geopolitical Tensions -
Rupee Falls To Record Low Against US Dollar As Israel Strikes Iran -
Adani Ports: Why Adani Group's Cash-Cow Stock Falls Amid Israel-Iran Conflict? Explained! -
Iran-Israel War: How It Impacts Nifty, Sensex And Indian Rupee -
Rs 5/Share Dividend: Record Date In Due Course; Buy The Capital Goods Stock? -
Stocks To Buy: 2 Trade Calls By Chandan Taparia of Motilal Oswal On Friday, 19 April -
New Rules Mandate Aadhaar For Small Savings Schemes -
Trade Setup: Nifty Slides Below 22,000 Mark; Global Markets Plunge On Reports Of Explosions In Iran -
JNK India IPO To Open On 23rd April: Check Price Band, Issue Size & More Details Here -
Banks Close As India Votes: Lok Sabha Elections Phase 1
Inflation indexed bonds to be modified and made more lucrative
One of the aspect under consideration for revision includes higher investment limit. With it the cap on investment for institutional as well as retail investors will be increased. And, as indicated the likely limit for investment in such bonds could go upto Rs. 25 lakhs. Currently, all investor classes including retail investors, HUFs, universities, charitable institutions as well as HNIs can deploy an amount in the range of Rs. 5,000- Rs. 5 lakhs in these government-backed bonds.
H.R. Khan, Deputy Governor-RBI, on the sidelines of a meeting prompted Indian banks to promote the product by making available more application forms at bank branches. Commenting on the bonds, H.R Khan was quoted in one of the business daily saying "This CPI-linked inflation indexed certificate is a good product even as it stands now. Even existing features are quite good enough".
In order to further promote the CPI-linked inflation indexed certificate, banks are also considering the introduction of a loan product that would accept these bonds as collateral.
Inflation Indexed National Savings bonds introduced to provide hedge against inflation offers return in 2 parts, one as fixed rate of return @ 1.5% p.a. and the other linked to inflation rate. Such securities with a maturity term of 10 years cannot be redeemed before a term of three years subject to some conditions.
The inflation indexed certificates that will remain open for subscription until the end of the financial year 2013-2014 (31 March, 2014) can be invested in through SBI and its associate banks, ICICI Bank, HDFC Bank, Axis Bank and nationalised banks. Stock Holding Corporation of India can also be reached for investing in Inflation-indexed bonds. Read to know more about the existing features of IINSS-C bonds.
GoodReturns.in
