'Abolition of RBI bond cruel blow', says Chidambaram asking citizens to demand restoration

Former Finance Minister P Chidambaram has criticised the abolition of the Reserve Bank of India (RBI) bond and termed it as a 'cruel blow,' especially to senior citizens and called for citizens to demand that it must be restored immediately. The scheme, commonly known as RBI bond, is popular among retail investors who look for the safety of principal and a regular income. The Union Government had issued a notification on Wednesday abolishing the 7.75 per cent Savings (Taxable) Bonds, 2018. 

In a series of tweets on Thursday, the former Union Minister stated that every government is bound to provide at least one safe, risk-free investment option to its citizens which was the RBI bond since 2003. Chidambaram added that 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," Chidambaram tweeted. 

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'Tell the govt to do your duty'

Earlier on Saturday, P Chidambaram had asked RBI Governor Shaktikanta Das to "bluntly" tell the government to do its duty and take fiscal measures if he feels that the demand has collapsed and the GDP growth is heading towards negative territory. He also asked if the Prime Minister or the Finance Minister will laud themselves for the fiscal stimulus after the RBI chief's statement.

Chidambaram had earlier said the fiscal stimulus package announced by the government is "hopelessly inadequate", given the gravity of the economic crisis. He also trained his guns on the RSS, BJP's ideological mentor, on Saturday. "RSS should be ashamed of how the government has dragged the economy into negative growth territory," he said on Twitter.

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(with inputs from ANI)