New FAQ Page 2 - RBI - Reserve Bank of India
Inflation Indexed National Saving Securities - Cumulative (IINSS-C)
- The authorised banks are SBI & Associates, Nationalised Banks, HDFC Bank, ICICI Bank, and Axis Bank.
- Customers can approach any of the authorised banks, including SHCIL for such investment irrespective of whether they hold an account or not with that bank.
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The banks through which these securities have been purchased will provide other customer services.
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Investors can approach the banks for other services such as change of address, early redemption, nomination, lien marking, etc.
- Yes, joint holding will be allowed.
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The minimum investment limit is Rs. 5,000/- (five thousand).
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The maximum limit is Rs. 10 lakh per annum for eligible individual investors and Rs. 25 lakh per annum for institutions such as HUFs, Charitable Trusts, Education Endowments and similar institutions which are not pro-profit in nature.
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Yes premature redemption is allowed.
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For senior citizens above 65 years, the premature redemption is allowed after one year. For others, it is allowed after 3 years.
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Penalty at the rate of half of the last payable coupon will be charged from the investors. For example, if last payable coupon is Rs. 1,000/-, then Rs. 500 would be charged as penalty..
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In case of redemption prematurely before the maturity date, investors can approach the concerned bank few days before the coupon date and apply.
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In case of redemption on maturity, the investor will be advised one month before maturity regarding the ensuing maturity of the bond advising them to provide a Letter of Acquaintance, confirming the NEFT account details, etc.
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If everything is in order, the investor has to be paid immediately on the maturity date for payments through electronic mode and within maximum five days for any payment through physical instruments.
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Transferability is allowed to the nominee(s) only for individual investors on death of holder.
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Transferability is not allowed for other investors
- Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non Banking Financial Companies, (NBFC).
- As per extant RBI’s guidelines, banks will be free to decide interest rate on loans against these securities, subject to the condition that such interest rate is to be at base rate or above.
Page Last Updated on: December 11, 2022