Repayment of ‘7.95% OIL MKTG COS GOI SB 2025’ Scheduled for January 18, 2025

Holders Advised to Submit Bank Account Details or Tender Securities for Timely Repayment.

The Government of India has announced that the outstanding balance of ‘7.95% Oil Marketing Companies Government of India Special Bonds 2025’ will be repaid at par on January 18, 2025. From this date, no interest will accrue on the bonds.

In the event of a declared public holiday on January 18, 2025, by any State Government under the Negotiable Instruments Act, 1881, the repayment will be processed on the previous working day in those states.

Repayment Process and Guidelines for Holders

The repayment process is governed by sub-regulations 24(2) and 24(3) of the Government Securities Regulations, 2007, which outline the following:

1. Electronic Payment to Registered Holders:

   • Payment of maturity proceeds will be made through a pay order crediting the registered holder’s bank account or via electronic transfer.
   • Holders of Government Securities in the form of Subsidiary General Ledger (SGL) or Constituent Subsidiary General Ledger (CSGL) accounts or Stock Certificates must submit their bank account details in advance to ensure smooth processing.

2. Alternative Payment Procedure:

   • In cases where holders have not provided bank account particulars, they are required to tender the securities, duly discharged, at one of the following:
     • Public Debt Offices
     • Treasuries/Sub-Treasuries
     • Branches of the State Bank of India (SBI) where the securities are registered for interest payment
   • Securities must be submitted 20 days before the repayment due date to facilitate timely processing.

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Additional Instructions for Holders

• How to Submit Bank Details: Holders are advised to coordinate with their paying offices to ensure accurate submission of bank account information. This avoids delays or disruptions in receiving payment.
• Enquiry and Assistance: Details about the discharge procedure can be obtained from Public Debt Offices, Treasuries, and SBI branches.

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Key Highlights for Investors

• The Government ensures a secure and transparent repayment process through electronic banking systems or manual tendering of securities.
• Holders are urged to act promptly, either by providing account details or tendering the securities, to avoid any inconvenience.

This marks the maturity of the bonds issued in 2005 as part of the Government’s fiscal strategy to manage oil marketing companies' under-recoveries. The scheduled repayment is a critical milestone in India's financial obligations and reinforces the Government's commitment to honoring its debt instruments.