GoI discontinues 7.75% savings bonds
The Reserve Bank of India recently announced that the Government of India has discontinued 7.75% savings bonds.
The 7.75% savings bonds that are also called government bonds or RBI bons were issued in 2018. They were available for the resident citizens of India alone. The value of one bond was Rs 1000 and there was no maximum limit of investment. The interests of the bonds were taxed under Income Tax Act, 1961.
Apart from discontinuing savings bonds, GoI had also introduced other measures.
The rates of Small Savings scheme were cut. Also, the rates of PPF were cut from 7.9% to 7.1%. On the Sukanya Samriddhi Yojana, the rates were cut from 8.4% to 7.6%. RBI also reduced the repo rates twice after COVID-19.
The bonds are like guarantees provided by the GoI. On investing on these bonds, the GoI will return the amount with maturity at 7.75% interest rate. However, due to global recession, Government has now recently stopped issuing these bonds.
However, the move will deprive investors of the other saving options that provided high tax returns to the investors.
Month: Current Affairs - June, 2020
Category: India Nation & States Current Affairs