Government Bonds

Banks buy government security, who are they bought by? Largely banks. There's also insurance companies which are required to have a certain amount in government bonds. Pension plans, provident funds and mutual funds need to have this institutional demand for govermont securities. Now some part of that will change. People will get taxed on the amounts they put into their proped in fonds above two and a half lack ros aaor two and ahalf thousand rupees per year. So that actully makes this significantly less attractive.