: Govt to discontinue to sell savings bonds with 7.75% returns #FinanceIndia #StockMarketNEWS Govt to discontinue sell of savings bonds with 7.75% returns Mumbai, May 28 (KNN) The government has discontinued

@StockMarketNEWS Fri 29 May, 2020

Posted in: #FinanceIndia #StockMarketNEWS

Govt to discontinue to sell savings bonds with 7.75% returns #FinanceIndia #StockMarketNEWS
Govt to discontinue sell of savings bonds with 7.75% returns Mumbai, May 28 (KNN) The government has discontinued to sell its savings bonds that provided returns at 7.75 per cent (on a taxable basis), it said in a notification on Wednesday.

Mostly the retired people used to invest in this bond that came with a lock-in period of 4-6 years - depending on the age of the bondholder.

“The Government of India … hereby announces that the 7.75 per cent Savings (Taxable) Bonds, 2018, shall cease for subscription with effect from the close of banking business on Thursday, May 28, 2020,” the Reserve Bank of India (RBI) said in a notification on its website.

The bonds were issued in January 2018 for residents and Hindu Undivided Family (or HUF) members but were not available for non-resident Indians.

The minimum value of investment was Rs 1,000, with no maximum limit.

The bonds were available for seven years and its premature withdrawal was allowed only for senior citizens.

State Bank of India, nationalised banks, Axis Bank, ICICI Bank, HDFC Bank, and Stock Holding Corporation of India (SHCIL) were entities issuing these bonds.

Importantly, the government notified that it was only ceasing fresh issuance and not redeeming those already invested.