There will be two parts in the interest rate. One, fixed rate of 1.5% per annum and second, inflation rate.

For example, if inflation rate during the six months is 5%, then interest rate for this six months would be 5.75% (i.e. fixed rate -0.75% and inflation rate -5%).

Yes, fixed rate of 1.5% would act as a floor, which means that 1.5% per annum interest rate is guaranteed if there is deflation.

For example, if inflation rate is (-) 5%, then interest rate should be (-) 3.5% by simple calculation. But in such case, negative inflation will not be recognised and investors would get fixed rate of 1.5% (please see example 2 at 23).

These securities will be issued in the form of Bonds Ledger Account (BLA).

The securities in the form of BLA will be issued and held with RBI and thus, RBI will act as central depository.

A certificate of holding will be issued to the holder of securities in BLA.

Investor does not need to open a BLA with any bank for making investment.

After receiving the money and registration of the investor on RBI’s CBS (E-Kuber), the RBI will open a BLA for each investor and issue a “Certificate of Holding” indicating number of units of IINSS-C held by the investor.

The banks through which these securities have been purchased will provide other customer services.

Investors can approach the banks for other services such as change of address, early redemption, nomination, lien marking, etc.

Inflation rate will be based on the final combined Consumer Price Index [(CPI) base: 2010=100].

The final combined CPI will be used as reference CPI with a lag of three months. For example, the final combined CPI for September 2013 will be used as reference CPI for whole of December 2013.