8% Savings Bonds Scheme Not Closed: Finance Ministry

The 8% Scheme is being replaced by 7.75% Savings Bonds Scheme, Economic Affairs Secretary S C Garg said.

8% Savings Bonds Scheme Not Closed: Finance Ministry

The bond was open for subscription from April 21, 2003, and had a fixed tenure of six years.

New Delhi: The Finance Ministry said on Tuesday that RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 per cent. On Monday, 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 individuals 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.

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