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Reconciliation of Relief / Savings Bond – Appendix IV Statements

CO.DT.13.01.299/H.7295 /2003-04

June 15, 2004
Jyestha 25, 1926 (S)


The General Manager
State Bank of India & Associate Banks & 7 Nationalized Banks
The Managing Director

Dear Sir,

Reconciliation of Relief / Savings Bond – Appendix IV Statements

In terms of paragraph 1.7 of Memorandum of Procedure (MOP), the designated branches of Agency banks should submit a statement showing the amount of subscription received and the Bond Ledger Accounts opened in their books during the month in Part A - Appendix IV on a monthly basis to the PDO of jurisdiction and to their controlling office.

2. It is observed that the agency banks are submitting through their Link Cells at Nagpur (in case of State Bank of India through its Main branch, Kingsway, Nagpur) the Appendix IV statements promptly to Central Accounts Section (CAS), Nagpur for settlement of brokerage claims in the light of instructions contained in our letter No.CO.DT.13.01.272/H-2906/2002-03 dated February 26, 2003. However, the Appendix IV statements are either not submitted within the stipulated time or reported incorrectly to the PDO of jurisdiction by the branches of agency banks resulting in protracted correspondences by the PDOs with agency bank branches/link offices/CAS, Nagpur and non-reconciliation of figures related to subscription amount and bonds issued in respect of various Relief Bond / Savings Bond Schemes.

3. In order to facilitate reconciliation of subscription amount received and remitted to Government of India and related bonds issued, it has been decided that the Link Cells of Agency banks at Nagpur / the Main branch of SBI at Nagpur, should sort the branch-wise data of the Appendix IV according to branches falling within the jurisdiction of a particular Public Debt Office and should submit Appendix IV statement in respect of all branches on a monthly basis in soft and hard copy to the Public Debt Office of jurisdiction besides submission of the above statement to CAS, Nagpur for the purpose of claiming brokerage / commission. Henceforth, the agency bank branches should discontinue sending Appendix IV directly to PDO of jurisdiction.

4. In case of non-submission of the requisite data within the 15th day of the following month by the Link Cells / SBI Main branch at Nagpur to the Public Debt Office jurisdiction, a penalty of Rs.500/- per day would be levied and recovered from your bank by CAS, Nagpur for each day of delay beyond the above date. The penalty will be applicable for delayed submission of Appendix IV either to CAS, Nagpur or to PDO of jurisdiction or for both. The penalty amount will be recovered from the brokerage / commission amount payable to your bank by CAS, Nagpur. With a view to facilitate making necessary arrangements in this regard at Link Cells / SBI Main branch at Nagpur no penalty will, however, be leviable for the month of July 2004 (in respect of transaction relating to June 2004) in case of delayed submission of Appendix IV to PDO jurisdiction.

5. You may issue necessary instructions to all the designated branches issuing and servicing the Relief / Savings Bonds. You may also suitably advise your Link Cell at Nagpur such that they ensure submission of duly sorted Appendix IV to PDO of jurisdiction in accordance with the revised instructions.

6. Please acknowledge receipt.

Yours faithfully,

General Manager