Dr.T.V.Gopalakrishnan
This bond is not attractive and is to trap the investors under the pretext that they will be protected from high inflation and they will have some real rate of return.Instead of this RBI could have prevailed upon the Government to give additional exemption of income tax on the interest income earned from the present Rs 10000 to Rs 50000. Further, RBI, of late has been hiving off all its retail business and dealings with retail related transactions. In this scenario, why it should come out with a an index linked certificate though through banks is really not understood. By this issue of Inflation linked bonds, RBI admits its inability to contain inflation under a reasonable level knowing fully well that the cause of inflation is not monetary but fiscal and administrative failures. This issue may not be a success as Tax free bonds are more attractive and hassle fre
This comment i s in response to various reports on the Inflation linked bonds that appeared in ET, Business standard etc dated 23/12/13)
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