New Delhi, Dec. 10 -- In order to cater to the needs of individual investors who want to invest in debt products with full security, the government introduced RBI floating rate saving bonds in where the rate of interest is linked with the interest being paid by the government on government savings schemes. These bonds were introduced in 2020 to replace the 7.75% savings (taxable) bonds.

These bonds are available only to individuals and a Hindu Undivided Family (HUF). So other entities like trusts, companies, partnership firms, etc., cannot subscribe to these bonds. It is not that all individuals can apply for these bonds. The individuals who are residents of India under the Foreign Exchange Management Act (FEMA) can only subscribe to the...