These are sovereign bonds issued by Reserve bank of India on behalf of the Central Government of IndiaGovernment securities
The expenditure of the Government is decided in the central budget and against which borrowings are made. The bonds are equivalent to the currency issued by the RBI governor, in terms of safety and commitment to honor. E.g 6.54% GOI 2032- means twice a year government of India will pay 6.54% interest to the account of the bond holder till the maturity date of 2032. The bonds can be held in a regular demat account which is used to hold the equity shares.
I was guided properly when I wanted to save for my future retirement. I was worried as I will not get a pension post my retirement. The investment in Shares is too risky and I did not want to keep my hard earned money in shares. The RBI savings bonds helped me to get interest at 8% paid to me once in 6 months. The options provided to me by the efficient relationship managers of VERITAS helped me have a peaceful retired life.
