The 8% RBI Relief Bonds used to be an attractive investment avenue as long as the tax benefits were available on the bond. Previously, the interest on the RBI Relief Bonds issued by the Reserve Bank of India was tax-free. However, subsequently, the interest on RBI bonds was not only made taxable, but there was also TDS deduction on this interest, making the instrument relatively unattractive in post-tax terms. The bonds have a maturity of 6 years and there is no upper limit on investments. Investors have a choice of opting for the non-cumulative (where interest is paid 6-monthly) or cumulative (where interest is accrued every 6 months and assumed to be re-invested). The removal of tax benefits has taken the sheen away from the RBI bonds. They are only issued from time to time.