RBI bonds scheme not closed: Finance Ministry
New Delhi: The finance ministry on Tuesday said RBI bonds scheme has not been closed but the interest rate on such papers lowered to 7.75%.
On Monday, the government notified that the 8% GoI Savings (Taxable) Bonds, 2003 “shall cease for subscription with effect from the close of business on Tuesday, January 2, 2018”.
“The 8 per cent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8 per cent Scheme is being replaced by 7.75 per cent Savings Bonds Scheme,” economic affairs secretary S.C. Garg said in a tweet.
These taxable bonds are meant for individual other than non-resident Indians with no maximum limit for investment.
In 2003, the government came out with bonds offering 8% interest to encourage retail investors to invest.
The bond was open for subscription from 21 April 2003, and had a fixed tenure of six years. There was no upper limit for investment.