RBI/2004/31

CO.DT.No. 13.01.298/H.311-341/2004-05

The Chairman & Managing Director State Bank of India & 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,

It has been decided by the Government of India vide their Notification F.No.4(9)- W & M/2003 dated July 9, 2004 (copy enclosed) that the issue of 6.5% Savings Bond, 2003 (Non Taxable) shall cease with effect from the close of business on Friday, July 9, 2004.

2. Accordingly, you are advised to STOP accepting fresh applications in respect of the captioned Scheme with immediate effect.

3. The contents of the circular may please be conveyed to all the designated branches of your bank handling Savings Bonds, 2003 (Non Taxable).

4. Please acknowledge receipt.

Government of India

Ministry of Finance

Department of Economic Affairs

(Budget Division)

New Delhi, dated the 9th July, 2004

F.No.4(9) W & M/2003: The Government of India, hereby notifies that the issue of 6.5% Savings Bonds, 2003 as per Notification F.No.4 (9) W & M/ 2003, dated the 13th March, 2003 shall cease with effect from close of business as on July 9 (Friday), 2004.

Sd/-

(K.S. Menon)

Joint Secretary (Budget)