Today is your last chance to invest in RBI 7.75% bonds scheme

New Delhi: The government has announced that 7.75% Savings (Taxable) Bonds scheme, 2018, popularly known as RBI 7.75% bonds scheme or RBI Bonds, will be discontinued from Thursday (May 28).

If you have not invested in this bond, however, today is your last chance to do so. The government has said that the bonds will be discontinued from the aforesaid date till the time of the closure of banking business hour.

The Government on Wednesday (May 27) notified, “The 7.75 percent Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on Thursday, the 28th of May, 2020”.

What is RBI 7.75% bonds scheme

Government in 2018 issued 7.75% Savings (Taxable) Bonds, 2018 (with effect from January 10, 2018). There will be no maximum limit for investment in the Bonds.


The following category of people can invest in the RBI 7.75% bonds scheme:

Resident Indian (Non-Resident Indian- cannot apply for this)
Hindu Undivided Family

Income Tax

Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bond holders.
The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957.

Issue Price

The Bond is issued at par i.e. at Rs 100.00.

The Bonds is issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof. Accordingly, the issue price will be Rs 1,000 for every Rs1,000 (Nominal) face value.


The Bonds will be issued in ‘Cumulative’ or ‘Non-cumulative’ form, at the option of investor and will bear interest at the rate of 7.75% per annum.

Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above and interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.

In the latter case, the maturity value of the Bonds shall be Rs 1,703.00 (being principal and interest) for every Rs 1,000/-(Nominal).

Interest on Bonds held to the credit of Bonds Ledger Account of an investor will be paid, electronically by credit to bank account of the holder as per the option exercised by the investor/ holder.


The Bonds shall be repayable on the expiration of 7 years from the date of issue.

Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the investor in support of age to the satisfaction of the issuing bank, after minimum lock in period from the date of issue as indicated below:

Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue.

Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue.

Lock in period for investors in the age of 80 years and above shall be 4 years from the date of issue.

In case of joint holders or more than two holders of the Bond, the above lock in period will be applicable even if any one of the holders fulfills the above conditions of eligibility.