On May 28, 2020, government has ceased the 7.75% Savings (Taxable) Bonds scheme commonly known as RBI (Reserve Bank of India) Bonds or GOI (Government of India) bonds for subscription due to the declining interest rates as RBI has lowered the short-term lending (repo) rate which is currently at 4%.
- It should be noted that these bonds offered a higher interest rate as compared to bank fixed deposits and other financial investment instruments offering equal degree of safety.
Popular among retail investors; offers higher interest rate
7.75% Savings (Taxable) Bonds scheme popular among retail investors for safety of principal and a regular income. NRIs were not eligible for making investments in these bonds. However, Interest on the Bonds is taxable.
- The Bonds were issued at par at Rs 100.
- These bonds had a seven year lock-in period.
- Any individual can invest in these RBI taxable bonds, without any maximum investment limit. The minimum investment in the bonds starts at Rs 1,000.
About Reserve Bank of India (RBI):
Headquarters– Mumbai, Maharashtra
Formation– 1 April 1935
Governor– Shaktikanta Das
Deputy Governors– 4 (Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra, one is yet to be appointed).