Skip to main content

Govt closes subscription for 8% savings bonds from today

Govt closes subscription for 8% savings bonds from today
The government savings bonds, 2003, one of the most sought after investment instruments among the middle class, particularly senior citizens, which gave an assured return of 8 per cent per annum, will be closed for subscription from January 2.“The eight per cent GOI Savings (Taxable) Bonds, 2003, shall cease for subscription with effect from the close of banking business on Tuesday, January 2, 2018,” the Ministry of Finance said in a statement on Monday.
The bond, which the Reserve Bank of India (RBI) started issuing on the behalf of the Union government in 2003, was considered to be one of the safest savings instruments for retail investors.It got more traction in recent years as interest rates on bank fixed deposits and small savings schemes gradually declined
The bond had alockin period of six years and was available for purchase by individuals on tap.Former finance minister PChidambaram said the move to scrap the bonds was an attack on the middle clas
“GoI eight per cent taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003.Government has taken away their only safety net,” he said inaseries of tweets, adding, “Government owes a duty to provide its citizens one safe and risk free instrument for savings.
Taking the only instrument away is a deplorable act.” Chidambaram also questioned whether the move was intended to push people to invest in stock markets and mutual funds.“Interest rates reduced for small savings instruments.Eight per cent taxable bonds discontinued.But inflation is rising.A double whammy for the middle class,” he said.
Last week, the government had slashed interest rates on small saving schemes, such as public provident fund (PPF), National Savings Certificate (NSC), and Kisan Vikas Patra, by 0.2 percentage points for the January-March quarter.
The Business Standard, New Delhi, 2nd January 2018

Comments

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025