March 27, 2014 10:38 AM

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Investment limit in CPI-linked bonds increased

The RBI on Wednesday, notified that the government had doubled the maximum limit for investment in inflation-indexed national savings securities. RBI has informed that the maximum limit has been increased to Rs. 10 lakh per annum for eligible individual investors and Rs. 25 lakh per annum for Institutions such as Hindu Undivided Families, Charitable Trusts, Education Endowments and similar institutions which are not pro-profit in nature.The maximum limit for investment in bonds linked to the Consumer Price Index – CPI inflation has hitherto been Rs 5 lakh per applicant. The subscription will close on 31 March 2014. The CPI-linked bonds were launched in December exclusively for retail investors as a way for them to have a positive rate of return on their investment.

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