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

Former Finance Minister P Chidambaram has criticised abolition of 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. scheme, commonly kwn as RBI bond, is popular among retail investors who look for safety of principal and a regular income. Union Government had issued a tification on Wednesday abolishing 7.75 per cent Savings (Taxable) Bonds, 2018. 

In a series of tweets on Thursday, former Union Minister stated that every government is bound to provide at least one safe, risk-free investment option to its citizens which was RBI bond since 2003. Chidambaram added that after lowering interest rates in PPF and small savings instruments, abolition of RBI bond is ar 'cruel blow.' "All citizens must demand that RBI Bond must be restored immediately," Chidambaram tweeted. 

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'Tell govt to do your duty'

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

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

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(with inputs from ANI)