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Committee on Procedures & Performance Audit on Public Sercies (CPPAPS) – Report No. 2 – Compensation structure for delay in payment of interest and/or principal
Please refer to our circular CO. DT. No. 13.01.298/H-9786/2004-05 dated May 20, 2005 (RBI/2005/477), on the captioned subject. As per para 3 thereat, an investor in Relief/Savings Bonds has to be compensated by the concerned bank at ‘current Saving Bank Rate’ on account of financial loss incurred by the investor due to late receipt/delayed credit of interest warrants/ maturity value of investment, etc.
2. In this regard, we advise that as the interest rate on savings deposits have since been deregulated, the banks shall compensate the investors for the above mentioned financial loss at their own Saving Bank deposit rate for respective amounts (i.e. Rs. 1 lakh and over Rs. 1 lakh) without any discrimination.
Deputy General Manager