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The Department of Economic Affairs (DEA) has notified the issue of 7.75 percent Savings Bonds Scheme thatwill come into effect from January 10.

Earlier this week reports suggested the government plans to discontinue subscription for the 8 percent Savings Bonds Scheme, a preferred investment choice for senior citizens, retirees, among others, effective January 2. However,the DEA Tuesday clarified the scheme will not be closed but replaced.

In a tweet today, DEA Secretary Subhash Chandra Garg reiterated the 7.75 percent scheme will replace the existing 8 percent Savings Bonds Scheme. and clarified why it was not notified earlier.

7.75% Savings Bonds Scheme notified. Would replace 8% Scheme. Will be effective from 10th January. This sequenced notifications and gap of a week was necessary to avoid overlap in cheques realisations.

Subhash Chandra Garg (@SecretaryDEA) January 4, 2018


Senior Congress Leader P Chidambaram had criticised the government following reports of the discontinuation in a tweet that read, GoI 8% taxable bonds have been the safe harbour of the middle class, especially retirees and senior citizens, since 2003. Government has taken away their only safety net.

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Responding to Chidambaran’s comments, the DEA Secretary tweeted 8% Savings Bonds Scheme, also known as RBI Bonds Scheme, is not being closed. 8% Scheme is being replaced by 7.75% Savings Bonds Scheme.

Chidambaram, in turn, tweeted, “Last night, 8% taxable bonds were scrapped. I protested. This morning, Secretary tweeted that 7.75% bonds will be issued. No notification so far!” He also said the government had an odd way of functioning.”When did a tweet become a government order or notification? Strange are the ways of this government.”

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