Inflation Indexed National Savings Securities- Cumulative, 2013 - ಆರ್ಬಿಐ - Reserve Bank of India
Inflation Indexed National Savings Securities- Cumulative, 2013
RBI 2013-14/411 December 19, 2013 The Chairman & Managing Director Dear Sir/Madam, Inflation Indexed National Savings Securities- Cumulative, 2013 It has been decided by the Government of India, as per their Notification F.No. 4(16) W&M/2012 dated December 19, 2013, to issue Inflation Indexed National Savings Securities- Cumulative, 2013 (“the Bonds”) with effect from December 23, 2013 to December 31, 2013. The Government of India reserves the right to close the issue earlier than December 31, 2013. The terms and condition of the issue of the Bonds shall be as follows: 2. Eligibility for Investment The Bonds may be held by:- i) an individual, not being a Non-Resident Indian-
ii) a Hindu Undivided Family (HUF) iii) (a) 'Charitable Institution' to mean a Company registered under Section 25 of the Indian Companies Act 1956, or (b) an institution which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force; or (c) any institution which has obtained a certificate from Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961. iv) 'University' means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a university for the purposes of that Act. 3. Limit of Investment Minimum limit for investment in the bonds is `5,000/- and maximum limit for investment is `5,00,000/- per applicant per annum. 4. Tax Treatment Income Tax: Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bonds holder. 5. Issue Price i) The Bonds will be issued at par, i.e. at 100.00 per cent. ii) The Bonds will be issued for a minimum amount of `5,000/- (face value) and in multiples thereof. Accordingly, the issue price will be `5,000/- for every `5,000/-(Nominal). 6. Subscription Subscription to the Bonds will be in the form of Cash/Drafts/Cheques/online through internet banking. Cheques or drafts should be drawn in favour of the bank (Receiving Office), specified in paragraph 10 below and payable at the place where the applications are tendered. 7. Date of Issue The date of issue of the Bonds in the form of Bonds Ledger Account will be opened (issued) from the date of receipt of funds/realisation of draft/cheque. 8. Form i) The Bonds will be issued only in the form of Bonds Ledger Account and may be held at the credit of the holder in an account called Bonds Ledger Account (BLA). ii) The Bonds will be issued in the form of Bonds Ledger Account and held with Reserve Bank of India. A certificate of holding as specified in ‘Form I’ (attached) will be issued to the holder of Bonds in Bonds Ledger Account. 9.Applications i) Applications for the Bonds may be made in the application format attached or in any other form as near as thereto stating clearly the amount and the full name and address of the applicant. ii) Applications should be accompanied by the necessary payment in the form of cash/drafts/cheques/online through internet banking as indicated in paragraph 6 above. Note:- The authorised banks are responsible to ensure compliance with the applicable KYC norms. The application form and the requisite documentation are to be retained by the authorised banks for record and future reference. 10. Receiving Offices Applications for the Bonds in the form of Bonds Ledger Account will be received at: (a) Branches of State Bank of India, Associate Banks, Nationalised Banks, three private sector banks (i.e. HDFC Bank Ltd., ICICI Bank Ltd., AXIS Bank Ltd.) and SHCIL during their working hours. (b) Any other bank or number of branches of the banks and SHCIL where the applications will be received as specified by the Reserve Bank of India in this behalf from time to time. 11. Nomination
12. Transferability The Bonds in the form of Bonds Ledger Account shall be transferable to nominee(s) on death of holder (only individual/s). 13. Interest The Bonds will bear interest at the rate of 1.5% (fixed rate) per annum + inflation rate calculated with respect to final combined Consumer Price Index [(CPI) Base; 2010 = 100]. Final combined CPI will be used with a lag of three months to calculate incremental inflation rate (i.e. final combined CPI for September would be used as reference CPI for all days of December). Interest will be compounded with half-yearly rests and will be payable on maturity along with the principal. 14. Advances/Tradability against Bonds The Bonds shall not be tradable in the secondary market. The Bonds shall be eligible as collateral for loan from banks, Financial Institutions and Non-Banking Financial Company (NBFC). The lien to that effect will be marked in the depository (RBI) by the authorised banks. 15. Repayment
16. Handling charges Handling charges at the rate of `1.00 (Rupee one only) per `100.00 will be paid to the authorised banks on the subscription received by them from investors. Yours faithfully, (Sangeeta Lalwani)
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