Current Affairs Government to withdraw 7.75% Savings (Taxable) Bonds scheme

Government to withdraw 7.75% Savings (Taxable) Bonds scheme

497

The government has decided to withdraw 7.75% Savings (Taxable) Bonds scheme from the close of banking business on Thursday due to declining interest rates.
The scheme, commonly known as RBI Bonds or GOI bonds, is popular among retail investors who looking for safety of principal and a regular income. NRIs, however, are not eligible for making investments in these bonds.
“The Government of India, hereby notifies that the 7.75% Savings (Taxable) Bonds, 2018…shall cease for subscription with effect from the close of banking business on Thursday, the 28th of May, 2020,”
The Reserve Bank of India too has notified the Cessation of 7.75% Savings (Taxable) Bonds, 2018. Interest on the Bonds is taxable.
The Bonds are issued at par at ₹100. The minimum subscription was fixed at ₹1,000.
The Bonds are be repayable on the expiration of seven years from the date of issue.
The interest rate on bank fixed deposits as well as lending rates are on decline with the Reserve Bank of India lowering the key short-term lending (repo) rate. The repo rate is currently at historic low of 4 per cent.

About Reserve Bank of India (RBI)-

The Reserve Bank of India is India’s central bank, which controls the issue and supply of the Indian rupee.
RBI is the regulator of the entire Banking in India.
RBI plays an important part in the Development Strategy of the Government of India.
RBI regulates commercial banks and non-banking finance companies working in India.
It serves as the leader of the banking system and the money market.
It regulates money supply and credit in the country.
The RBI carries out India’s monetary policy and exercises supervision and control over banks and non-banking finance companies in India.
RBI was set up in 1935 under the Reserve Bank of India Act,1934.
Founded – 1st April 1935
Headquarters– Mumbai
Governor– Shaktikanta Das