The Government has notified a new 7.75 per cent taxable bond scheme to replace the earlier 8 per cent scheme for retail investors. These bonds with seven-year maturity would open for subscription from January 10, a finance Ministry statement said on Thursday.
“7.75 per cent Savings Bonds Scheme notified. Would replace 8 per cent Scheme. Will be effective from 10th January. This sequenced notifications and gap of a week was necessary to avoid overlap in cheques realisations,” Economic Affairs Secretary SC Garg said in a tweet.
The interest would be payable half-yearly and the cumulative value of Rs 1,000 at the end of seven years will be Rs 1,703. These taxable bonds to be issued at par are meant for individual other than Non-Resident Indians, it said, adding these are not tradeable in the secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial firms or financial institutions.