bought a G-Sec through RBI Retail Direct about 4 months ago. expected to see some interest by now but nothing has come to my bank account. how does G-Sec interest work? is it monthly or yearly or what
When does G-Sec interest actually get credited? I have been holding for 4 months and nothing came in
G-Secs pay interest semi-annually, twice a year. The payment dates are fixed at issuance and are typically 6 months apart. Each G-Sec has its own specific interest payment dates which are published in the original security terms. So if you bought a G-Sec whose coupon dates are January 15 and July 15, and you bought it in March, your first interest payment will be July 15. Four months in and not having received anything is completely normal if the next coupon date has not arrived yet.
okay how do I find out the exact coupon dates for my G-Sec
The easiest way is to look at the security name. RBI names G-Secs with their coupon and maturity year, like 7.10% GS 2034. The 7.10% is the annual coupon. Check your holding in RBI Retail Direct or your demat statement for the full ISIN. Then search that ISIN on the NSE or RBI website which will show the exact coupon dates. The RBI also publishes a master list of all outstanding government securities with their coupon payment dates.
and the interest gets credited directly to bank account linked to RBI Retail Direct? no manual action needed?
Correct. Fully automatic. The interest lands in the bank account you registered when setting up RBI Retail Direct. No action needed on your side. If you bought through a broker, the coupon credits to your linked bank account through the depository system automatically on the coupon date.