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RBI allowed premature encashment of 8% Savings Bonds for Investors above 60

RBI permitted premature encashment of 8% savings of taxable bonds for investors of 60 years and above.

Aug 31, 2013 09:48 IST
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The Reserve Bank of India (RBI) on 30 August 2013 permitted the premature encashment of 8 percent savings (Taxable) Bonds for individual investors who are 60 years and above in age. The facility would be available after a minimum lock-in period of three years from the date of issue of the bond. In case of joint holders, any one of the holders should fulfill the conditions of eligibility.

RBI in its notification also clarified that partial encashment of amount invested on a single application will not be permitted. It also directed the Urban Co-Operative Banks to stop giving donations to trusts and institutions where the bank’s directors or their relatives hold positions or have interests.