7.75 pct Savings Bonds Scheme to be in effect from Jan 10

Economic Affairs Secretary Subhash Chandra Garg on Thursday said that eight percent Savings Bonds Scheme will be replaced with 7.75 percent Savings Bonds Scheme, starting from January 10.

The Secretary Department of Economic Affairs (DEA) also clarified that a one week gap to implement the scheme is necessary in order to avoid an overlapping of cheque realisations.

"7.75 percent Savings Bonds Scheme notified. Would replace eight percent Scheme. Will be effective from 10th January. This sequenced notifications and gap of a week was necessary to avoid overlap in cheques realisations," Garg posted on Twitter.

Earlier on Tuesday, Garg had clarified that the government of India is not closing subscription for the eight percent Savings Bonds Scheme, instead, replacing it with 7.75 percent Savings Bonds Scheme.

"Eight percent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. Eight percent Scheme is being replaced by 7.75 percent Savings Bonds Scheme," Garg had written on Twitter.

The Ministry of Finance had on Monday announced to cease subscription of the eight percent GOI Savings (Taxable) Bonds, 2003 with effect from the close of banking business on January 2, 2018.