GOI to Cease 7.75% Saving Bonds

May 29, 2020
Current Context: 7.75% Saving Bonds or Taxable bonds are to be ceased by the Government of India due to the fact of declining interest rates as RBI has lowered the repo rate (repo rate is 4%). 
GOI to Cease 7.75% Saving Bonds
  • The 7.75% Saving Bonds or Taxable bonds as commonly known as Reserve Bank of India Bonds or Government of India Bonds
  • These bonds offer higher interest rates as compared to Fixed deposits of banks
  • About 7.75% Saving Bonds:-These bonds were issued in 2018 by GOI. These bonds were issued at par at Rs 100 and had 7 years lock in period. Maximum investment in the bonds starts at Rs 1000
  • Static Part: 
    • Headquarters of RBI– Mumbai, Maharashtra
    • Governor of RBI – Shaktikanta Das
    • Deputy Governors of RBI– Bibhu Prasad Kanungo, Mahesh Kumar Jain, Michael Debabrata Patra.

Question: 

Q: Recently, GOI took a decision to cease which of the following bonds?
a. Sovereign Gold Bonds
b. Indian Railways Finance Corporation Tax free bonds
c. 7.75% Saving Bonds
d. Capital Gains Bonds by NHAI and REC

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