The Reserve Bank of India has today
asked commercial banks to compensate the holders of Relief/Savings Bonds for
the loss incurred by them on account of late receipt or delayed credit of the
interest warrants/maturity value of their investments in these Bonds. The compensation
would be paid at the current savings bank rate for the number of days of delay.
The Reserve Bank has stated that its own offices will also pay such compensation
in case the delay occurs at their end.
In a communication issued to banks
and its own offices, the Reserve Bank stated that this decision was taken to
provide better customer service to the investors in Relief/Savings Bonds.
As per the Reserve Bank’s instructions,
banks are required to send to the holders of non-cumulative bonds interest warrants
one month before the due date. The maturity value of cumulative bonds has also
to be sent in advance. In case the bond holder tenders the discharged securities
after the bonds have matured, the bank is required to send the maturity value
to the bond holder within five clear working days of receiving the duly discharged
Chief General Manger
Press Release: 2004-2005/1220