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:
1. an individual
- in his or her name or on behalf of a minor, or
- jointly with one or more individuals
2. a Hindu Undivided Family
3. a Non-Resident Indian (without the right of repatriation of principal)
4. G.P. Notes can also be issued on anyone or survivor basis
5. 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.