The 7.75 percent Savings (Taxable) Bonds launched by the Reserve Bank of India (RBI) in 2018, will cease to exist from May 28.
"The Government of India 7.75% Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on Thursday, May 28, 2020," RBI said in a release.
These RBI bonds used to come with a rate of interest of 7.75 percent which is comparable to the interest offered on the small saving schemes such as National Saving Certificate. These bonds were seen as an attractive option for regular income seekers like senior citizens and retirees.
First introduced in 2003 at 8 percent, the interest rate was reduced by 25 bps in January 2018. Barring non-resident Indians (NRIs), any individual or Hindu Undivided Family (HUF) was allowed to invest in these bonds. Available at a face value of Rs 100 per bond, these are issued for a minimum amount of Rs 1,000 (one needs to buy at least 10 bonds), with no upper limit for investment.
Source:- moneycontrol.com