The Finance Ministry on said RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 per cent.
Yesterday, the government notified that the 8 per cent 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 per cent interest to encourage retail investors to invest.
The bond was open for subscription from April 21, 2003, and had a fixed tenure of six years. There was no upper limit for investment.