January 16, 2004

Pausha 26, 1925

Circular No. RBI / 2004 / 13

Ref.DGBA.CO.DT.13.01.299/H- 3819 /2003-04

The Chairman & Managing Director,

SBI & Associate Banks,

& 17 Nationalised Banks,

UTI Bank Ltd., ICICI Bank Ltd.,

HDFC Bank Ltd. IDBI Bank Ltd. &

Stock Holding Corporation of India Ltd.

Dear Sir,

8% Savings (Taxable) Bonds 2003

Please refer to our letter No.CO.DT.13.01.299/H-38362002-03 dated 3rd April 2003 on the captioned subject. In this connection, we advise that Government of India has since notified that para 14 of the Ministry of Finance’s Notification No.F4(10)-W&M/2003 dated 21^st March 2003 has been deleted vide their Notification No.F.4(10)-W&M /2003 dated 13^th January 2004.

Accordingly, we advise that no tax should be deducted at source while making payment of interest on the captioned bonds.

Yours faithfully,

sd/-

( B.B. Sangma )

General Manager

Endt.No.CO.DT.13.01.299/ H-3819-A /2003-04

Copy forwarded for information to the Regional Directors, Reserve Bank of India Public Debt Office, Ahmedabad / Bangalore / Kolkata / Chennai/ Hyderabad/ Jaipur/ Kanpur/ Fort,Mumbai/ Byculla Mumbai / Nagpur / New Delhi/ Patna/ Thiruvananthapuram / Bhopal / CAS Nagpur.

(U.C.Jaiswal)

Asstt.General Manager