March 21, 2002

'15'

INTEREST RATE ON RELIEF BONDS - PRESS NOTE

    In partial modification of Ministry of Finance Press Note dated March 4, 2002 regarding reduction of interest rate on Relief Bonds to 8% per annum with effect from March 1, 2002, it is further clarified that:-

1. The ceiling of Rs.2 lakh per investor will not apply to relief bonds, which were purchased prior to March 1, 2002 but are yet to mature. Such bonds will continue to earn interest at the rate prevailing on the day they were purchased (contracted rate) till they mature.
2. The Relief Bonds of earlier series, which have matured, but have not been encashed will continue to earn post-maturity interest at 8% per annum upto March 31, 2002.
3. Matured bonds remaining unencashed upto a value of Rs.2 lakh will continue to earn post-maturity interest at 8% per annum even after March 31, 2002.