The government will no longer sell its savings bonds that provided returns at 7.75 per cent (on a taxable basis), it said in a notification on Wednesday.
This was a popular instrument among the retired, who used to invest in this instrument that came with a lock-in period of 4-6 years — depending on the age of the bondholder. For others, there was no premature redemption.
“The Government of India … hereby announces that the 7.75 per cent Savings (Taxable) Bonds, 2018, shall cease for subscription with effect from the close of banking business on Thursday, May 28, 2020,” the