February 06, 2015
The Chairman & Managing Director
Head Office (Government Accounts Department)
State Bank of India & Associate Banks
All Nationalised Banks
ICICI Bank Ltd., HDFC Bank Ltd, Axis Bank Ltd., and
Stock Holding Corporation of India Ltd (SHCIL).
Inflation Indexed National Savings Securities-
Cumulative, 2013 – Early repayment/redemption
Please refer to our circular DGBA.CDD.No.2589/13.01.999/2014-2015 dated December 11, 2014 regarding early repayment/ redemption of Inflation Indexed National Savings Securities-Cumulative (IINSS-C), 2013. In terms of Para 15(ii) of the circular, an investor can seek early repayment/premature redemption,
(i) after one year of holding if he/she is a senior citizen (over 65 years of age)
(ii) after 3 years of holding in all other cases,
subject to deduction of penalty at the rate of 50% of the last coupon payable. The early redemption is allowed only on coupon date.
2. In this regard, keeping in view the problems being faced by the investors and the Agency banks, it has been decided that repayment/early redemption of IINSS-C may be kept open till the next coupon date and the premature repayment/early redemption requests can be entertained by the Agency banks on any day after the coupon date, subject to the penalty of 50% of last coupon. However, no interest would be paid for the period between the coupon date and the date of the repayment.
(R. K. Singh)
Deputy General Manager