News

Restore RBI bonds: P Chidambaram

Our Bureau New Delhi | Updated on May 29, 2020 Published on May 29, 2020

P Chidambaram

Former Finance Minister P Chidambaram has slammed the Centre for abolishing the 7.75 per cent RBI bonds. In a series of tweets, he said the move is blow on the citizens.

"Government has dealt another blow to citizens who save, especially senior citizens. It has discontinued the 7.75 per cent RBI Bonds. Government did this once before in Jan 2018. I protested vehemently. Next day they re-introduced the bond but reduced the interest rate from 8 per cent to 7.75 per cent," Chidambaram said.

He said 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 bound to provide at least one safe, risk-free investment option to its citizens. It was the RBI bond since 2003," he said.

Chidambaram said after lowering the interest rates in PPF and small savings instruments, the abolition of the RBI Bond is another cruel blow. "All citizens must demand that the RBI Bond must be restored immediately," he said.

Published on May 29, 2020
This article is closed for comments.
Please Email the Editor