RBI 8 per cent bond scheme not closed, interest rate on instrument lowered to 7.75 per cent, says Fin Min

Updated On : 02 Jan , 2018 , 02:37 PM
Reserve Bank of India - File photo
Reserve Bank of India - File photo
New Delhi:

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. 

First Published : Tuesday, January 02, 2018 02:25 PM
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