https://images.moneycontrol.com/static-mcnews/2018/11/Reserve-bank-of-India-770x433.jpg?impolicy=website&width=770&height=431

RBI's 7.75 percent Savings (Taxable) Bonds 2018: Subscription to stop from May 28

“The Government of India 7.75% Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on Thursday, the 28th of May, 2020,” RBI said in a release.

by

The 7.75 percent Savings (Taxable) Bonds launched by the Reserve Bank of India (RBI) in 2018, will cease to exist from May 28.

"The Government of India 7.75% Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on Thursday, May 28, 2020," RBI said in a release.

These RBI bonds used to come with a rate of interest of 7.75 percent which is comparable to the interest offered on the small saving schemes such as National Saving Certificate.  These bonds were seen as an attractive option for regular income seekers like senior citizens and retirees.

First introduced in 2003 at 8 percent, the interest rate was reduced by 25 bps in January 2018. Barring non-resident Indians (NRIs), any individual or Hindu Undivided Family (HUF) was allowed to invest in these bonds.  Available at a face value of Rs 100 per bond, these are issued for a minimum amount of  Rs 1,000 (one needs to buy at least 10 bonds), with no upper limit for investment.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Download a copy Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!