Govt stops selling 8 percent Savings Bonds | Current Affairs, Current Affairs 2017

Govt stops selling 8 percent Savings Bonds

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Small savers received a shocking surprise yesterday has government has decided to stop 8 per cent GoI Savings (Taxable) Bonds, 2003.
The government has decided to stop selling these bonds from Tuesday (effective close of banking business), putting out of reach of the common man an attractive savings instrument, albeit a taxable one.
According to an official release, ‘The Government of India (GoI) announced that 8 per cent GoI Savings (Taxable) Bonds, 2003, shall cease for subscription with effect from the close of banking business on Tuesday, January 2,’
The announcement was made after the falling rates on fixed deposits rates in the country in the recent months. The return on Public Provident Fund has also been adjusted downwards, putting pressure on the small savers and the salaried class.
Former Finance Minister P Chidambaram express shock over the decision, Reacting to the Government’s decision, he tweeted: “A severe blow to the middle class. How will the risk-averse citizen save? Is the Government pushing people into the stock market and mutual funds?’

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