As a measure of further decentralisation and to facilitate prospective investors to invest through the agency of their choice, with effect from August 1, 2000, the Reserve Bank of India has authorised branches of four private sector banks and Stock Holding Corporation of India (SHCIL) to receive subscriptions for the 9% Relief Bonds. Four private sector banks that have been authorised to receive subscription to the Relief Bonds are: HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd. and IDBI Bank Ltd. Now 93 branches of these agencies will also be able to receive subscription, issue and service 9% Relief Bonds along with select branches of public sector banks that are already authorised to do the work. The number of bank branches accepting and servicing Relief Bonds has today increased to 850 giving the investing public a much wider choice to invest in Relief Bonds in a branch convenient to it. Apart from agency branches, 15 Reserve Bank offices also accept and service Relief Bonds.

The designated agency branches offer Relief Bonds in dematerialised (demat) form, i.e., they issue these Bonds in the form of a bond ledger account opened in the name of investor. The Bonds held in the form of a bond ledger account with a bank not only protect the investor from theft or loss of Bond certificates but also facilitate payment of half-yearly interest and repayment at the branch itself.

The Relief Bonds are a preferred investment avenue with investing public as the interest earned on these Bonds is totally free from Income Tax. These are also Wealth Tax exempt without limit. The Bonds also offer nomination facility, easy transferability and are accepted as security against loans. Having five-year maturity period, the minimum investment in 9% Relief Bonds is Rs.1, 000 and its multiples with no upper limit on investments. Any individual/HUF is eligible to apply. Joint holding and holdings of these Bonds on behalf of minors are also allowed. Non-Resident Indians are eligible to invest in these bonds subject to Exchange Control regulations. The interest on these Bonds is payable half-yearly with cumulative and non-cumulative options. The interest is paid on these Bonds even after maturity if not redeemed.

The Government of India pays a brokerage of one rupee per Rs. 100 to brokers and PPF/UTI agents registered with receiving offices on subscriptions received through them. Brokers and PPF/UTI agents registered with the Reserve Bank are paid a brokerage of 50 paise for Rs. 100 if the bonds are purchased in demat form. No brokerage is paid on applications for G.P. notes at RBI offices.

Application forms and a list of designated agency branches are available on the RBI website at www.goirb.rbi.org.in, at designated agency branches and also at RBI offices.