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Money Aug 30, 2013

RBI allows premature encashment of 8% Savings (Taxable) Bonds

Mumbai: The Reserve Bank today permitted premature encashment of 8 percent Savings (Taxable) Bonds for individual investors who are 60 years and above.

This facility is after a minimum lock-in period of three years from the date of issue, RBI said in a statement.

Falling rupee. Reuters

Falling rupee. Reuters

An investor, desiring to avail of the facility of premature encashment, will have to submit documentary evidence in support of his/her date of birth to satisfaction of the agency bank, it said.

In case of joint holders or more than two holders of a Savings (Taxable) Bonds, 2003, any one of the holders should fulfil the above conditions of eligibility, it said in a communication to heads of all public sector banks.

However, partial encashment of amount invested on a single application is not permitted.

The statement further said that premature encashment of investment may be allowed even after despatch of interest warrant.

Suitable instructions to designated branches operating the scheme may be issued to make the changes in the system to absorb the premature encashment process, it added.

PTI


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