What are the options available regarding the interest payment on RBI Bond?
Option A - Interest payable half-yearly:
Option B - Cumulative interest payable on maturity:
Under this option interest at the rate of 8.5% per annum
would be compounded with half yearly rests and will be payable to the investor
on maturity alongwith the principal. Further interest at the rate of 8.5% per
annum shall be payable to such of the investors who do not encash their bonds
on the expiry of 5 years from the date of their issue, at half yearly intervals
or compounded with half yearly rests, as the case may be. Such interest would
be payable from the date of maturity till the time the bonds are redeemed.
Source : DWT