8% RELIEF BONDS SCHEME - 2002 D'MAT
(Interest Rates revised with effect from 1st March, 2002)
The Government of India, Ministry of Finance has notified the issue of 8% Relief Bonds under D'MAT scheme from 1st March, 2002
The main features of the scheme are as follows:
1. Who can invest:
The bonds may be held by:
- an individual
- in his or her name or on behalf of a minor, or
- jointly with one or more individuals
- a Hindu Undivided Family
- a Non-Resident Indian (without the right of repatriation of principal)
- G.P. Notes can also be issued on anyone or survivor basis
- Bonds can be held by a minor with one or more major individual/s (including a minor)
2. How much can one invest:
- The maximum limit for investment in the bonds will be Rs.2,00,000/- per investors in a 12 month period commencing from 1st March, 2002.
- Application must be in multiples of Rs.1000/- subject to a minimum of Rs.1000/-.
3. Issue Price:
- The bonds will be sold at par i.e. At Rs.100 per cent.
- The issue price will be Rs.1000/- for every Rs.1000/- (Nominal).
4. When can one buy:
Bonds under the scheme are available for subscription from 1st March, 2002 until further notice.
5. Date of issue, period of holding and repayment:
- The date of issue of the bonds in the form of Promissory Note/Bond Ledger Account will be the date of receipt of subscription in cash or the date of tender of draft or the date of realisation of the cheque as the case may be.
- The period of holding of bonds is five years from the date of issue.
- The bonds shall be repayable on the expiration of 5 years from the date of their issue. Premature encashment of the Bonds is not allowed.
- The Bonds will earn interest upto the date of redumption, if not redeemed on due date.
- Proceeds can be reinvested. The matured bonds in the form of Promissory Note/existing Stock Certificate will be tendered for reinvestment at Public Debt Offices of Reserve Bank of India only.
6. Form of Bonds:
The bonds will be issued in the form of Bond Ledger Account or a Government Promissory Note and both these forms can be held either under Option-A or Option-B. (A Bond Ledger Account is a dematerialised form of holding the bonds at entry (i.e. bank branch itself) The Bonds in the form of Bond Ledger Account will be issued at the receiving office (Reserve Bank offices and branches of authorised Public Sector Banks) for which a certificate of Holding will be issued to the holder. The Bonds in the form of Promissory Notes will be issued only at offices of Reserve Bank of India.
7. Payment of Interest:
Option-A - Interest payable half-yearly
Under this option an investor will get interest at the rate of 8% per annum payable at half yearly intervals from the date of issue of bond in terms of sub-paragraph (I) of paragraph (5) above. The interest will be paid from the date of issue of bonds upto 30th June/31st December as the case may be and thereafter half yearly on 30th June and 31st December by means of post dated interest warrants sent to the investor in advance alongwith the Promissory Note. The interest warrants would be valid for three months from the date of issue.
Bond Ledger Account
In case of Bond Ledger Account, by credit to the Bank account of the holder or by interest warrants or cheques.
Option-B - Cumulative interest payable on maturity
Under this option interest at the rate of 8% per annum would be compounded with half yearly rests and will be payable to the investor on maturity alongwith the principal. Under this option the maturity value of the bonds shall be Rs.1480.25/- (Being principal and cumulative interest) for every Rs.1000/- (nominal) provided that further interest at the rate of 8% per annum shall be payable to such of the investors who do not encash their bonds on the expiry of 5 years from the date of their issue, at half yearly intervals or compounded with half yearly rests, as the case may be. Such interest would be payable from the date of maturity till the time the bonds are redeemed.
8. Tax Concessions:
- Income Tax : Interest on the bonds will be exempt from income tax under the Income Tax Act, 1961.
- Wealth Tax : The bonds will be exempt from Wealth Tax under the Wealth Tax Act.
9. Where the bonds cannot be issued immediately on receipt of the subscription due to non-availability or otherwise of the Bond forms, the receiving office will issue a provisional receipt in favour of the subscriber for the value of the subscription tendered by him. The receipt is to be discharged by all the holders at the time of collection of bond.
- The bonds in the form of Bond Ledger Account will be transferable by execution of a transfer deed in the prescribed form. However, transfer shall not be deemed as complete until the name of transferee is registered as holder of the Bond in the Office of Issue. A new Bond Ledger Account will be opened in the name of the transferee for the remaining period by closing the BL Account of the transferer.
- The Bond in the form of Promissory Note will be transferable by endorsement and delivery.
11. Notwithstanding the provision of paragraph 2 above, the Bonds can be held by a Banking Company, State Bank of India, an Associate Bank, a corresponding new bank and a Co-operative Bank as defined in the Banking Regulation Act, 1949 or a Regional Rural Bank established under Section 3 of the Regional Rural Banks Act, 1976, if the Bonds are transferred under sub-paragraphs (I) and (ii) of this paragraph for the limited purpose of obtaining advance against the security of such bonds.
The Bonds can be pledged with the Banks for the purpose of obtaining advances against the security of such bonds.
13. NRI's are eligible to invest in the scheme (subject to the Exchange Control Regulations).
- A sole holder or a sole surviving holder of a Bond, being an individual may nominate in part of this application form one or more persons who shall be entitled to the Bond and the payment thereon, in the event of his death.
- Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bond shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
- No nomination shall be made in respect of the Bonds issued in the name of a minor.
- A nomination made by a holder of a Bond may be varied by a fresh nomination in Part B or as near thereto as may be, or may be cancelled by giving notice in writing to the Public Debt Office of the Reserve Bank of India in Form C annexed to the application form.
- Every nomination and every cancellation or variation shall be registered at the Public Debit Office of the Reserve Bank of India where the bond is issued and shall be effective from the date of such registration.
- If the nominee is a minor, the holder of the Bond may appoint any person to receive the Bond/amount due in the event of his death during the minority of the nominee.
- The provisions contained in this paragraph shall apply only to the Bond issued in the form of Bond Ledger Account held by an individual.
- Nomination facility is not available for bonds held jointly or in the name of HUF or minor or in respect of bonds held in the form of Government Promissory Notes.
15. No deduction of any tax at source.
16. Availability of forms:
The forms are available with the offices of Reserve Bank of India, designated branches of State Bank of India and its subsidiaries and designated branches of Nationalised Banks.
Brokerage at the rate of Re.1/- (Rupee one only) per Rs.100/- will be paid to brokers registered with Reserve Bank of India as also to P.P.F. and U.T.I. agents, who will have to enrol themselves with the receiving offices of Reserve Bank of India. Brokerage is allowed on reinvestment.
Instruction for filling up the application for Relief Bonds
- Applications for bonds must be made for a minimum of Rs.100/- and in multiples thereof.
- Applications for bonds may be made in Part-A of the form attached thereto or in any other form as nearly as thereto stating clearly the amount and the full name and address of the applicant.
- Before submission of the application form at the Reserve Bank of India Offices/designated Bank branches, investors are required to ensure that it is filled up properly as incomplete applications are liable to be rejected.
- Applications should be accompanied by the necessary payment in the of Cash/Bank Draft or cheques. The cheques/Demand Drafts should be drawn in favour of
- RBI when deposited at the RBI offices
- Receiving Bank when deposited at the designated Bank branches and crossed Account Payee. "Outstation cheques will not be accepted." Investors would be issued temporary receipts for the payment which (duly discharged on the reverse) will be later exchanged for bonds.
- The investor should clearly indicate option about the form for issue of the bond i.e. in the form of a Government Promissory Note or a Bond Ledger Account.
- It should be indicated whether the interest is required to be paid under Option 'A' i.e. through post dated interest warrants on a half yearly basis ( in case of Promissory Note) or under Option'B' i.e. cumulative on maturity. The choice of option once exercised is final and in case no option is exercised the application will be deemed to be made under Option 'A' i.e. Interest payable half yearly and application processed accordingly.
- Please fill up the names of the applicants/minor/Karta of HUF in the appropriate place in the application form in block letters. Accurate address with Pin Code No. must be given. Also indicate the full name of the nominee in block letters.
- The investor is required to fill in the denomination wise break-up in which the bonds are required by them (subject to a minimum of Rs.1000/- and further in multiples thereof) at appropriate place in the application form.
- The place (name of city) where the investor wishes to draw interest half yearly/on maturity should be indicated at the appropriate place in the application form.
- Nominations should be made only at the appropriate place in the application form and not in the alternative form.
- Application under Power of Attorney
- If the application is signed by a Power of Attorney holder of the applicant who is absent from India, the Power of Attorney should contain express provision to receive interest on and principal amount of Government Securities and /or to negotiate or transfer them. The powers granted should be unconditional.
- If the Power of Attorney is executed outside India, it should be attested by a Notary Public of the place where it is executed and by an official of Indian Embassy/consulate under seal. However, documents executed in and attested by the notaries in Hungary, United Kingdom, Belgium, New Zealand and Ireland who have a reciprocal arrangement with India under Section 14 of Notaries Act, 1952 may be deemed as having been duly executed.
- The Power of Attorney should be properly stamped under Article 48 of Schedule I to the Indian Stamp Act as applicable to the concerned State. Powers of Attorney granted by a number of persons having separate and distinct interest in the acts to be performed under such powers, should be stamped with the aggregate amount of duty which would have to be paid if each person had executed a separate power. Similarly, a Power of Attorney executed by a person acting in two or more different capacities e.g. when he appoints an attorney to act on his behalf in regard to his own property and also in regard to any property which he has to administer e.g. a guardian of minor ward should be stamped with the aggregate amount of duty which would have to be paid if he had executed a separate power in respect of each of his different capacities.
- A Power of Attorney granted to cover a single transaction named therein would attract stamp duty under article 48(c) of Schedule I to the Indian Stamp Act, 1989.
- Under a Joint Holders' Power of Attorney, the donee/s should be empowered to draw interest and receipt the security for renewal only.
- Index card containing standard clauses normally incorporated in Powers of Attorney authorising Attorneys to deal in Government Securities.
- To purchase, sell, endorse, transfer and assign all or any Government Securities and securities of any description whatever.
- To demand and receive all interest and dividends due to accrue due on all or any such securities.
- To demand and receive all debts, sum of money, principal money, interest, dividends and dues of whatsoever nature or kind which now or at any time hereafter may be due or payable or belong to me.
- To sign application forms, contracts, agreements, transfer, acceptances, receipts, acquittances, dividend, mandates or other documents.
- To endorse and transfer to the said Bank any Government Securities, shares, stocks or debentures in any such company or corporation as aforesaid including the said Bank or other stocks, funds, debentures or securities of any description whatever, which may from time to time or at anytime be in the possession of the said Bank, whether for safe custody or otherwise and which may be held by the said Bank as security for any money payable to the said Bank by us jointly or by survivors or survivor of us in respect of any overdraft, general balance account or otherwise.
- For all or any of the purpose aforesaid to appoint a substitute or substitutes and such substitution as pleasure to revoke.
- To invest my money in Government Securities.
- The relevant Power of Attorney in original must be presented alongwith the application for registration and return alongwith.
- A copy of the said Power of Attorney duly certified by a Magistrate or Notary Public.
- The specimen signatures of the attorney on a separate sheet of paper duly attested by a Banker/Magistrate or a Special Executive Magistrate.
- Application on behalf of a minor
- In the case of a minor applicant the date of birth, guardian's name and relationship should be indicated at appropriate place in the application form.
- In the case of a minor applicant, a Guardianship Certificate granted by a Competent Court under the provisions of the Guardians and Wards Act (Act 8 of 1890) should be produced. However, the father of a Mohammedan minor and the father, or if the father be dead, the mother of a Hindu minor can sign the application and deal with the bonds on behalf of the minor without obtaining the certificate of guardianship.
- A Birth Certificate issued by the Municipal or other competent local authority, Church, Registrar of births/marriages or a Magistrate, the Head of a Gram Panchayat or the Head Master of a school disclosing the name of the minor and the date of birth should be produced in original and a xerox copy thereof alongwith the application made on behalf of the minor.
- Evidence showing that the ward is alive at the time must be produced in all cases of negotiation. A formal declaration by the guardian supported by the signature of two respectable witnesses and authenticated by Deputy General Manager/Accounts Asstt. General Manager, Public Debt Office, a Treasury Officer, a Magistrate, a Notary Public or a Bank Official (the Bank Official verifying the declaration should be one whose authority to bind the bank he represents has been registered at the Public Debt Office) will ordinarily suffice.
The declaration should be stamped in accordance with the provisions of the Stamp Act applicable in that State. If the declaration is to be produced in the State other than that where it is executed, difference in stamp duty will have to be paid. If the declaration is made in the presence of any attested by a Magistrate or any other person empowered to administer oath or affirmation, it will attract stamp duty as an affidavit.
- Application under the provision of HUF
If the application is made in the name of HUF, the Karta of HUF has to submit a declaration in the appropriate place in the application form.
- If the signature is by a thumb impression, it must be witnessed by two respectable persons. Full name, occupation and address of the witnesses should be filled in at the appropriate place in the application form.
- Application by NRI's
In case of an NRI investor, a letter of undertaking (duly signed by the investor) is required to be filled in at the appropriate place in the application form.
List of designated branches to handle 8% Relief Bonds Scheme 1999
|Mumbai Main Office, Mahatma Gandhi Road, Mumbai - 400023
|Andheri, Mumbai, Shiv Chhaya Co-op. Hsg.Soc. Ltd., M. V. Road, Andheri (East), Mumbai 400069.
|Bandra, Mumbai Plot No.NA-368, Sai Ashish Apartment, Swami Vivekanand Road, Bandra, Mumbai 400 050.
|Grant Road, Mumbai Novelty Chambers, Grant Road, Mumbai 400007.
|Worli, Mumbai Shri Chandrababa Mandir Trust Building, Dr. Annie Besant Road, Worli Naka, Mumbai 400018.
|Lal Darwaja Ahmedabad (Gujarat) Lal Darwaja, AHMEDABAD 380 001
|Ibrahimpura Bhopal (Madhya Pradesh) P. B. No.7, Ibrahimpura, Dist. BHOPAL 462 001
|Gwalior (M. P.), P. B. No.10, Jayendra Ganj, Lashkar, Gwalior 474 001.
|Jabalpur (Madhya Pradesh) P. B. No.11, 506, Sarafabazar, Malviya Chowk, JABALPUR 482 001.
|Ratlam (Madhya Pradesh) 74, Bajaj Khana, Ratlam 457 001 Dist. RATLAM
|Shahdara (Delhi) 124-28, Jayana Building, Railway Road, Shahdara, DELHI 110 032.
|Calcutta (West Bengal) P. B. No.40, Central Bank Building, 33, Netaji Subhas Road, CALCUTTA 700 001.
|Mumbai Cumbala Hill, Nepeansea Road, Mumbai (Maharashtra) 25, Laxmibai Jagmohandas Marg, Nepeansea Road, MUMBAI 400 036.
|Ghatkopar Mumbai (Maharashtra) Gandhi Chhaya, Opp. Sarvodaya Hospital, L.B.S.Marg, Ghatkopar, MUMBAI 400 086.
|Haroli (Himachal Pradesh) Village & P. O. Haroli 177 220 Dist. UNA
|Parliament Street , Delhi 25/4, Parliament Street, Post Shakarpur, DELHI 110 092.
|Mapuca, Goa House No.E378, P. O. Mapuca, Ilhas 403 403 Dist. NORTH GOA
|Madras (Tamilnadu), P. B. No.190, Madras Stock Exchange Bldg.11, 2nd Line Beach, MADRAS 600 001.