Govt closes subscription for 8% savings bonds from today

Chidambaram said the move to scrap the bonds was an attack on the middle class

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