RBI Bonds scheme not closed, says finance ministry | business news | Hindustan Times
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RBI Bonds scheme not closed, says finance ministry

In 2003, the government came out with bonds offering 8% interest to encourage retail investors to invest. These taxable bonds are meant for individuals other than Non-Resident Indians with no maximum limit for investment.

business Updated: Jan 02, 2018 14:39 IST
A woman walks past the RBI head office in Mumbai. The government said the RBI Bonds scheme has not been closed but the interest rate has been lowered to 7.75%.
A woman walks past the RBI head office in Mumbai. The government said the RBI Bonds scheme has not been closed but the interest rate has been lowered to 7.75%.(REUTERS)

The finance ministry said on Tuesday the RBI Bonds scheme has not been closed but the interest rate on such papers has been 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 SC Garg said in a tweet.

These taxable bonds are meant for individuals 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 April 21, 2003, and had a fixed tenure of six years. There was no upper limit for investment.