Govt mulls bond issue for middle-class, rates could beat retail inflation

The new scheme, likely to be backed by Nabfid, aims to offer retail investors an alternative savings route to equity markets

A new savings scheme for the middle class is in the offing from the government – a bond with interest rates well above the average rate of consumer price inflation (CPI).  

 

The timing of the scheme – with a launch expected soon after the current winter session of Parliament gets over – will allow Finance Minister Nirmala Sitharaman to take stock of the scheme in her Budget presentation on February 1. The finance ministry and the Reserve Bank of India have already had discussions on the purported bond issue, source said. Another round of talks is expected once the incoming