Not closing subscription for 8% GoI savings bond: Secy DEA

Economic Affairs Secretary Subhash Chandra Garg on Tuesday clarified that the government of India is not closing subscription for the 8 percent Savings Bonds Scheme, instead, replacing it with 7.75 percent Savings Bonds Scheme.

"8 percent Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8 percent Scheme is being replaced by 7.75 percent Savings Bonds Scheme," Garg posted on Twitter.

Earlier on Monday, certain sections of the media had reported that the government shall cease subscription for these bonds with effect from January 2, quoting a Ministry of Finance notification.

The release reportedly said that the 8 percent GOI Savings (Taxable) Bonds, 2003 shall cease for subscription with effect from the close of banking business on January 2, 2018.

These bonds have been a preferred choice for many senior citizens, retirees, and those looking for fixed income.

Earlier last week, the Ministry of Finance had reduced interest rate on various small saving schemes by 0.2 percent.