The government feels there is no justification to offer such a subsidised product to high net worth individuals
The government has turned down a request from non-resident Indians (NRIs) to allow them to subscribe to the 8 per cent tax saving bonds.
Senior government officials said given the extent of the government subsidy towards the paper, there was no justification for allowing NRIs to tap the source.
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They said while the demand had come in from several sources, they had not been able to offer any substantial reason for allowing them to subscribe to the bonds.
The finance ministry feels that since NRIs are a high net worth group, there is no justification for the government to offer such a subsidised product to them. The bonds impose high operating costs on the government, whose burden would be aggravated by adding the NRIs