8% RBI Bonds scheme not closed, only interest rate lowered to 7.75%, clarifies finance ministry

New Delhi: The Finance Ministry on Tuesday said RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 percent. [caption id=“attachment_4220977” align=“alignleft” width=“380”] Representational image. Reuters[/caption] On Monday, the government notified that the 8 percent GoI Savings (Taxable) Bonds, 2003 “shall cease for subscription with effect from the close of business on Tuesday, 2 January, 2018.” “The 8 percent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8 percent Scheme is being replaced by 7.75 percent Savings Bonds Scheme,” Economic Affairs Secretary S C Garg said in a tweet. These taxable bonds are meant for individual other than Non-Resident Indians with no maximum limit for investment. In 2003, the government came out with bonds offering 8 percent interest to encourage retail investors to invest. The bond was open for subscription from 21 April, 2003, and had a fixed tenure of six years. There was no upper limit for investment.