Categories: Business

government stops issuing 7.75 percent saving bonds

Photo: GOOGLE

Cessation of RBI Bonds

new Delhi. The government has decided to withdraw the 7.75 percent savings (taxable) bond scheme from the time the banking business ends on Thursday. The government has taken this decision in view of the declining interest rates. These government bonds are commonly known as RBI bonds or Government of India bonds. This bond scheme is well-liked among general investors because of its superior and safe returns. Investors in these bonds invest in the security of their principal amount as well as keeping in mind regular income.

Overseas Indians are not eligible to invest in these bonds. "The Government of India notifies that 7.75 percent Savings (taxable) bonds will not be available for investment from the end of banking hours on Thursday, May 28, 2020," said the Reserve Bank's notification issued on Wednesday. . The Reserve Bank has also issued a notification in this regard. Tax is payable on the interest received in these bonds. These bonds invest at a face value of Rs 100 and the minimum investment limit is Rs 1,000. According to the plan, these bonds are for a period of seven years. However, at a time when the interest rates on loans are constantly being cut, the burden of interest rate on bonds can increase. The Reserve Bank recently cut the repo to four percent. Given this, the cost on these bonds with an interest rate of 7.75 percent may be higher. In view of which this decision has been taken.

This post was published on May 28, 2020 12:11 pm

Content Team

Recent Posts

We are going to become the world's largest 100% electrified rail network: Piyush Goyal

Photo: PTI There're clear signs that India is on path of getting back into action: Piyush Goyal at India Global…

ED raids Delhi NCR tour travel companies seized rs 3.57 crore. ED raids Delhi travel companies, seized Rs 3.57 crore

Photo: FILE ED raids Delhi NCR tour travel companies seized rs 3.57 crore New Delhi. The Enforcement Directorate (ED) has…