Press Information Bureau

Government of India

Ministry of Finance

04-July-2011 17:37 IST

Repayment of 11.50 % loan, 2011 on August 5, 2011 and Repayment of Government of India Floating Rate Bonds, 2011 on August 8, 2011

The outstanding balances of 11.50 % Loan, 2011 is repayable at par on August 5, 2011 and no interest will accrue there on from the said date. In the event of a holiday being declared on August 5, 2011 by any State Government under the Negotiable Instruments Act, 1881, the Loan will be repaid by the paying offices in that State on the previous working day.

The outstanding balances of Government of India Floating Rate Bonds, 2011 is repayable at par on August 8, 2011 and no interest will accrue there on from the said date. In the event of a holiday being declared on August 8, 2011 by any State Government under the Negotiable Instruments Act, 1881, the Loan will be repaid by the paying offices in that State on the previous working day.

As per sub-regulation 24(2) and 24(3) of Government Securities Regulations, 2007 payment of maturity proceeds to the registered holder of Government Security held in the form of Subsidiary General Ledger or Constituent Subsidiary General Ledger account or Stock Certificate shall be made by a pay order incorporating the relevant particulars of his bank account or by credit to the account of the holder in any bank having facility of receipt of funds through electronic means. For the purpose of making payment in respect of the securities, the original subscriber or the subsequent holders of such Government Securities, shall submit the relevant particulars of their bank account well in advance.

However, in the absence of relevant particulars of bank account/mandate for receipt of funds through electronic means, to facilitate repayment of the Loan on the due date, holders may tender the securities, duly discharged, at the Public Debt Offices, Treasuries/Sub-Treasuries and branches of State Bank of India and its Associate Banks (at which they are enfaced /registered for payment of interest) 20 days in advance of the due date for repayment.

Full details of the procedure for receiving the discharge value may be obtained from any of the aforesaid paying offices.

DSM/SS/GN

Maturity repayment procedures require par redemption and electronic payment or tendering of securities to designated paying offices. Repayment at par on maturity ceases interest accrual from the maturity date; if a State holiday for negotiable instruments falls on that date, repayment is made on the previous working day. Registered holders in Subsidiary General Ledger or by stock certificate will receive payment by pay order with bank particulars or by electronic credit under government securities regulations. Absent bank particulars, holders may tender discharged securities at Public Debt Offices, Treasuries/Sub-Treasuries or designated bank branches within the prescribed advance period to facilitate repayment.