The bonds with a tenor of 10 years will carry interest at 12.35 per cent payable on half-yearly basis.

According to a Nabard release, repayment of the principal and payment of interest on the bonds are guaranteed by the central government. The bonds will have the status of trustee securities under the Indian trust act, 1882 and approved securities under the insurance act, 1938 as also the banking regulation act, 1949.