New Delhi: Former Union Finance Minister and senior Congress leader P. Chidambaram on Thursday slams the government for discontinuing the RBI Bonds scheme, saying it is another "cruel blow" to the citizens. On Wednesday, May 27, 2020, a government notification stated that 7.75% Savings (Taxable) Bonds, 2018, also known as RBI Bonds or Government Bonds, will cease to be a subscription with effect from the closure of banking business on 2020 ”.
According to information received from sources, Chidambaram opposed the move in a series of tweets and said that citizens should demand that the bonds be restored immediately. The government has given another blow to the citizens, especially the senior citizens. It has closed 7.75% RBI bond of seniors, the Congress leader said, the government has done this even before January 2018.
Effectively, after tax, the bond will yield only 4.4 per cent. That is now taken away. Why? I deplore this action.
— P. Chidambaram (@PChidambaram_IN) May 28, 2020
He has further said in this matter that “I protested bravely. The next day he reintroduced the bond but the interest rate has been reduced from 8% to 7.75%. Effectively, after tax, the bond will yield only 4.4 per cent. That is now taken away. Why? I deplore this action. Every government is obliged to provide at least one safe, risk-free investment option to its citizens. It was an RBI bond since 2003. After reducing interest rates in PPF, the abolition of RBI bonds is another cruel blow. All citizens should demand that the RBI bond should be restored immediately.
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