RBI/2004 /374
Ref. DGBA CO DT No. 13.01.299 / H- / 2004-05
February 22, 2005
The Chairman & Managing Director
State Bank of India and Associate Banks 17 Nationalised Banks
ICICI Bank Ltd., HDFC Bank Ltd., UTI Bank Ltd., IDBI Bank Ltd. Stock
Holding Corporation of India Ltd.
Dear Sir
Investments in 8 % Savings (Taxable) Bonds, 2003
- deviations from stipulations of GOI Notifications regarding eligibility criteria
Of late, certain instances have come to our
notice that some agencies operating the 8 % Savings (Taxable) Bonds, 2003 have
deviated from the stipulations regarding the eligibility criteria for investors
as laid down in the Government of India Notifications No. F .4 (10) - W&M
/ 2003 dated March 21, 2003 and August 10, 2004 and the related Reserve Bank
of India guidelines.
2. You are, therefore, advised to take necessary
measures and ensure that the stipulated eligibility criteria are strictly adhered
to and that there are no deviations in this regard. Please note that if any
deviation from the laid down procedure is observed, Reserve Bank of India will
be constrained to take penal action against the concerned bank / Corporation.
Yours faithfully,
(Prabal Sen)
Chief General Manager-in-Charge