The Government of India has reduced the rate of interest payable on Relief Bonds issued under 9% Relief Bonds, 1999 Scheme from 9% per annum to 8.5% per annum with effect from March 15, 2001. Consequent to the change, the Relief Bonds issued on or after March 15, 2001 will bear interest at 8.5% per annum and simultaneously the sale of bonds bearing interest at 9% per annum will cease.

Valid applications up to the date of receipt of Government decision by the receiving offices regarding this reduction in the rate of interest will, however, be deemed to be subscription under the 9% Relief Bonds, 1999 Scheme.

Further, the Government of India has decided that post-maturity interest on 10% and 9% Relief Bonds earlier issued would carry post maturity interest at 8.5% per annum with effect from March 15, 2001.