The Government of India hereby notifies the issue of 10% Relief Bonds, 1993, from March 15, 1993, until further notice."
2. Eligibility for investment.--
The Bonds may be held by--
(i) an individual--
(a) in his or her individual capacity,
(b) in individual capacity on joint basis,
(c) in individual capacity on any one or survivor basis (only in the case of Bonds issued in the form of promissory note),
(d) on behalf of a minor as father/mother/legal guardian
(ii) a Hindu undivided family.
3. Limit of investment.--
There will be no maximum limit for investment in the Bonds.
4. Price, date of issue and date of repayment.--
(1) The Bonds will be issued at Rs. 100.00 per cent.
(2) The issue price will be Rs. 1,000.00 for every Rs. 1,000 (nominal).
(3) (i) Subscription to the Bonds will be in the form of cash/draft/cheques or matured Relief Bond/s standing in the name of the applicant.
(ii) The date of issue of the Bonds will be the date of receipt of subscription in cash or the date of tender of draft or the date of realisation of cheque as the case may be.
In the case of matured Relief Bond/s tendered, the bonds will be issued from the date of its/their cancellation from the books of the Public Debt Office of issue.
(4) The Bonds shall be repayable on the expiration of 5 years from the date of their issue.
The Bonds will bear interest at the rate of 10% per annum. Interest will be payable (f) at half-yearly intervals from the date of receipt of subscription in terms of sub-paragraph (3) of paragraph 4 above, or (ii) compounded with half-yearly rests and will be payable on maturity along with the principal, as the subscriber may choose. In the latter case, the maturity value of the Bonds shall be Rs. 1,630 (being principal and interest) for every Rs. 1,000 (nominal). Interest to the holders opting for option at (i) will be paid from date of subscription in terms of sub-paragraph (3) of paragraph 4 above 1[up to 31st December/30th June] and thereafter half-yearly on June 30 and December 31. Interest in such cases will be remitted by means of post-dated interest warrants attached to the Bond:
Provided further that interest at the rate of 10% per annum shall be payable to such of the holders who do not encash their Bonds on the expiry of 5 years from the date of their issue in terms of sub-paragraph (4) of paragraph 4 above, at half-yearly intervals or compounded with half-yearly rests, as the case may be. Such interest will be payable from the date of maturity till the time the Bonds are redeemed.
6. Tax concession.--
(i) Income-tax. - Interest on the Bonds will be exempt from income-tax under the Income-tax Act, 1961.
(ii) Wealth-tax. - The Bonds will be exempt from wealth-tax under the Wealth-tax Act.
(iii) Gift-tax. - Gift of the Bonds made by an initial subscriber will be exempt from gift-tax subject to a maximum of Rs. 5 lakhs in the aggregate in one or more years.
The Bonds will be issued in the form of stock certificate or promissory note.
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.
(i) The Bonds in the form of stock certificate will be transferable by execution of an instrument of transfer annexed to it. However, transfer shall not be deemed as complete until the name of transferee is registered as holder of the Bond in Public Debt Office of Issue.
(ii) The Bond in the form of promissory note will be transferable by endorsement and delivery.
(iii) The Bond issued in one form cannot be converted into the other form.
Notwithstanding the provisions of paragraph 2 above, the Bonds can be held by any 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.
11. Application for Relief Bonds.--
(i) Applications for Bonds must be in multiples of Rs. 1,000.
(ii) Applications for Bonds may be made in Form 'A' attached hereto or in any other form as nearly as thereto stating clearly the amount, and the full name and address of the applicant.
(iii) Applications will be received at:
(a) Offices of the Reserve Bank of India at Ahmedabad, Bangalore, Bhubaneswar, Bombay (Fort and Byculla), Calcutta, Guwahati, Hyderabad, Jaipur, Kanpur, Madras, Nagpur, New Delhi, Patna and Thiruvananthapuram.
(b) Branches of State Bank of India and its subsidiaries as per Annexure I.
(c) Branches of Nationalised Banks as per Annexure II.
(d) Applications should be accompanied by the necessary payment in the form of cash/bank draft/cheques or matured Relief Bonds.
(i) A sole holder or a sole surviving holder of a Bond, being an individual, may nominate in Form B annexed to this notification or as near thereto as may be, one or more persons who shall be entitled to the Bond and the payment thereon, in the event of his death.
(ii) 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.
(iii) No nomination shall be made in respect of the Bonds issued in the name of a minor.
(iv) A nomination made by a holder of a Bond may be varied by a fresh nomination in Form 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 notification.
(v) Every nomination and every cancellation or variation shall be registered at the Public Debt Office of the Reserve Bank of India where the bond is issued and shall be effective from the date of such Registration.
(vi) 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.
(vii) The provisions contained in this paragraph shall apply only to Bonds issued in the form of stock certificates.
13. Brokerage. --
Brokerage at the rate of Re. 1 (Rupee one only) per Rs. 100 will be paid to brokers registered with the Reserve Bank of India as also to P.P.F. and U.T.I. agents, who will have to enroll themselves with the receiving of f ices listed in paragraph 11 (iii) above.
[See para II( ii)]
(Brokers Stamp with address)
Form of Application for 10 per cent Relief Bonds, 1993
1. I/We.............................................(full name/s in block letters) herewith tender cash/draft/cheque/matured Relief Bond/s for Rs............................... (Rupees..............................) being the subscription amount for 10% Relief Bonds, 1995, and request that the Bond/s may be issued to me/us in the form of stock certificate/promissory note.)
2. This application has been made by me/us in my/our personal capacity or as Guardian* Karta of HUF*.
3. *I wish to make a nomination in respect of the Bond(s) applied for. The prescribed nomination form is enclosed. *I do not wish to make a nomination in respect of the Bond applied for at present.
4. **I wish to draw interest on maturity/half-yearly at the Reserve Bank of India/State Bank of India/State Bank of............
First applicant Name and Second applicant Name and
Address with date Address with date
*Delete what is not required.
** Interest will be payable at the office of RBI of issue, branch of SBI or its Associate Bank conducting Government Treasury Business.
FOR OFFICE USE ONLY
Special Current Account credited on.................................................(Date)
P. Manager/ Branch Manager
(Rubber Stamp of receiving office)
Notes: (1) The application should be in multiples of Rs 1,000...