The Hindu Business Line : Collateral facility extended to savings bonds

Mumbai, Aug. 21 Those who hold Government of India savings bonds can now pledge them or place them as collateral for loans from scheduled commercial banks, said a press release from RBI. However, the facility is available only in case the borrower is the holder of the bonds and not for loans to third parties.

The Government has amended the notifications relating to 7 per cent Savings Bonds, 2002, 6.5 per cent Savings Bonds, 2003 (Non-Taxable), and 8 per cent Savings (Taxable) Bonds, 2003 schemes — allowing for pledge or hypothecation or lien of these bonds as collateral for obtaining loans from the scheduled banks in accordance with Section 28 of the Government Securities Act, 2006 and regulations 21 and 22 of the Government Securities Regulations, 2007. All other terms and conditions in respect of these bonds remain unchanged, the release said.

More Stories on : Govt Bonds | Credit Market

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
From ‘class banking’ to ‘mass banking’

Rupee gains by 20 paise

Reporting standards: IRDA panel to look at compliance needs

IDBI Fortis branch in Vijayawada

Development Credit Bank opens branch in Dharavi

Karnataka Bank launches inward remittance facility

Bonds decline sharply

Collateral facility extended to savings bonds

Foreign, pvt banks shy away

PSU banks keen to step up SME sector lending

Equitas Micro raises Rs 50 cr

Call rate ends lower

Central Bank unveils new cards

Bank unions plan stir next month

YES Bank, Cisco tie up for voice-enabled phone banking