'Safest' 8% bond not being closed; govt only replaced it with 7.75% scheme

After drawing flak for closing the most sought-after investment instrument, particularly among senior citizens, Economic Affairs Secretary Subhash Chandra Garg clarifies only the rate has been tweaked

The government savings bonds, 2003, which gave an assured return of 8 per cent a year, are to be replaced with another scheme offering lower interest rate, the Union government said on Tuesday, a day after coming under attack from Opposition parties for discontinuing the 2003 bonds.

“The 8% Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. The 8% Scheme is being replaced by 7.75% Savings Bonds Scheme,” Economic Affairs Secretary Subhash Chandra Garg said in a tweet.

The government had announced discontinuing the subscription of 8% GoI Savings (Taxable) Bonds, 2003 – one of