Government securities play a crucial role in the financial market, providing investors with a secure avenue for investments. When it comes to the ‘4.48% GOVT. STOCK 2023,’ understanding the repayment process is essential. In this blog, we will explain the repayment details and the necessary steps to ensure a smooth repayment process for investors.
Repayment Date and Interest:
The outstanding balance of ‘4.48% GOVT. STOCK 2023’ is repayable at par on November 02, 2023. Importantly, no interest will accrue after this date. It’s crucial to mark your calendar and ensure you are prepared for the repayment on time.
Public Holidays and Repayment:
In the event of a holiday being declared on the repayment day by any State Government under the Negotiable Instruments Act, 1881, the Loan/s will be repaid by the paying offices in that State on the previous working day. This provision ensures that you receive your repayment without any delay due to unforeseen holidays.
According to sub-regulations 24(2) and 24(3) of the Government Securities Regulations, 2007, payment of maturity proceeds to the registered holder of Government Security held in the form of Subsidiary General Ledger or Constituent Subsidiary General Ledger account or Stock Certificate will be made as follows:
- Pay Order: The payment will be made through a pay order that includes the relevant particulars of the holder’s bank account.
- Electronic Credit: Alternatively, the payment can be credited to the account of the holder in any bank that has the facility to receive funds electronically.
For a smooth and timely repayment process, the original subscriber or subsequent holders of ‘4.48% GOVT. STOCK 2023’ should submit the relevant particulars of their bank account well in advance. This is a crucial step to ensure that the funds are transferred correctly and securely to your account.
Procedure in the Absence of Bank Account Details:
In cases where the relevant particulars of the bank account or a mandate for the receipt of funds through electronic means are not available, holders can facilitate the repayment of the Loan by following these steps:
- Tender the securities: Duly discharge the securities.
- Submit the discharged securities at the Public Debt Offices, Treasuries/Sub-Treasuries, and branches of the State Bank of India. Ensure that you submit them at the location where they are enfolded/registered for the payment of interest.
- This should be done at least 20 days in advance of the due date for repayment.
This alternative procedure ensures that even if you don’t have the relevant bank account information, you can still facilitate the repayment process.
For more detailed information regarding the procedures for receiving the discharge value, you may contact any of the paying offices mentioned earlier.