Indian banks to pay 8% on delayed Relief Bond interest payments

Banks are expected to be more prompt in crediting interest amount of Relief or Saving Bond investors.

This is to avoid a heavy compensation they will have to pay for delayed payment.

The Reserve Bank of India has directed banks to compensate investors of Relief or Savings Bonds at 8% per annum for financial loss incurred to them due to delay in payment of interest amount.

Earlier RBI had asked banks to compensate for the delay in payment at their own savings bank rate, irrespective of the amount.

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