Which of the following statement s is are correct about Inflation Indexed National Savings Securitie...........

Economic Affairs Financial Markets

Download Solution PDF

Which of the following statement(s) is/are correct about Inflation Indexed National Savings Securities issued by RBI?

1. It will provide a fixed return of 1.5% per annum over and above the combined Wholesale Price Index.

2. Compounded interest rate will be paid every six months to the holder.

3. Interest income on the bonds will be exempted from Income Tax.

Which of the statements given above is/are correct?

1 only

2 only

2 and 3 only

None of the above

छोटे Courses बड़े Results

Master Financial Markets

Prepare through Micro-courses

Try Now

Explanation:

None of the above mentioned statement is correct.

Inflation Indexed National Savings Securities-Cumulative(IINSS-C) The Inflation Indexed National Savings Securities-Cumulative(IINSS-C) bonds will offer investors a return that's 1.5% more than inflation based on the consumer-price-index.Interest will be compounded half yearly, enhancing effective yield on investments.