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.

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%.

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)

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.