RBI Annual Closing: Relief/Savings Bonds Interest on July 1, 2005
Current & verified — this is the latest version
Source: Reserve Bank of India · RBI/2004-05/499 · issued 20 Jun 2005 · ~1 min read
Quick answerRBI clarifies that despite its annual closing on July 1, 2005, agency banks must credit interest/maturity proceeds of Relief/Savings Bonds due that day to investors' accounts, including ECS, without delay.
The rule, in the simplest words
Banks must credit interest/maturity proceeds of Relief/Savings Bonds to investors' accounts on July 1, 2005, despite RBI's annual closing.
Banks must ensure ECS credits are processed on July 1, 2005, for investors who opted for electronic clearing.
Banks should pre-position funds and update systems to handle ECS and manual credits seamlessly.
How it plays out — a real example
Rahul, an agency-banking (government business) officer in Indore, ensured that all Relief/Savings Bonds interest/maturity proceeds were credited to investors' accounts on July 1, 2005, without delay, to avoid customer complaints. He coordinated with the bank's dealing branches to make necessary arrangements and updated the system to handle ECS credits seamlessly.
What changed
RBI confirmed that its annual closing holiday on July 1, 2005, does not affect payment of interest or maturity proceeds on Relief/Savings Bonds due that date. Banks must ensure investors are credited on July 1 itself, even though RBI is closed for public transactions.
What it means for you
Agency banks must process bond payments on July 1, 2005, despite RBI's closure, to avoid customer complaints. This reinforces that operational arrangements for bond servicing must override internal holidays. Banks should pre-position funds and update systems to handle ECS and manual credits seamlessly.
What you must do
Instruct dealing branches to credit investors' accounts on July 1, 2005, for Relief/Savings Bonds interest/maturity due that day.
Ensure ECS credits are processed on July 1, 2005, for investors who opted for electronic clearing.
Verify that no customer complaints arise from delayed payments due to RBI's annual closing.
Coordinate with SHCIL and other agencies to confirm bond payment schedules are unaffected.
Who it affects
State Bank of India and its associates, Nationalised banks, ICICI Bank, HDFC Bank, UTI Bank, IDBI Bank, SHCIL (Stock Holding Corporation of India Limited), Investors holding Relief/Savings Bonds with maturity or interest due on July 1, 2005
❓ Common questions
Why is RBI closed on July 1, 2005?
RBI remains closed for public transactions on July 1, 2005, for its annual closing of accounts, as per standard practice.
Will bond investors face delays in receiving payments due on July 1, 2005?
No. RBI has clarified that agency banks must credit investors' accounts on July 1 itself, including ECS payments, despite RBI's closure.
Which bonds are covered by this clarification?
The clarification applies to Relief/Savings Bonds with interest or maturity proceeds falling due on July 1, 2005.
📜 Read the original circular — full text as issued by RBI
RBI/2004-05/499
CO.DT.13.01.299/H.10847-86/2004-05
June 20, 2005
The Chairman and Managing Director,
State Bank of India and its Associates Nationalised Banks
ICICI Bank Ltd., HDFC Bank Ltd., UTI Bank
Ltd.
IDBI Bank Ltd., & SHCIL
Dear Sir,
Annual Closing of Accounts of Reserve
Bank of India – Change in Holiday from June 30 to July 1 – Payment of Interest
and Maturity proceeds on Relief / Savings Bonds
As you are aware, for the purpose
of Annual Closing of accounts, the Reserve Bank of India will remain closed
for public transactions on July 1, 2005. In this connection, some Agency banks
have sought clarifications regarding payment of interest / maturity proceeds
in respect of Relief / Savings Bonds due on July 1, 2005.
2. It is hereby clarified that
there will not be any change with regard to payment of interest / maturity proceeds
on July 1, 2005 in respect of the captioned bonds, although Reserve Bank will
remain closed for public transactions. We, therefore, advise you to issue necessary
instructions to the dealing branches of your bank to make arrangements to credit
the investors’ accounts, including those who opted for ECS on July 1,
2005 itself for the interest payments / repayments due on that date
and ensure that no complaints are received from customers in this regard.
Yours faithfully,
Sd/-
(B.B. Sangma)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2004-05/499 · issued 20 Jun 2005. The plain-English explanation above is BankPulse’s own independent summary.
Instruct dealing branches to credit investors' accounts on July 1, 2005, for Relief/Savings Bonds interest/maturity due that day.
⚙️ Operations
Ensure ECS credits are processed on July 1, 2005, for investors who opted for electronic clearing.
📜 Compliance
Verify that no customer complaints arise from delayed payments due to RBI's annual closing.
Coordinate with SHCIL and other agencies to confirm bond payment schedules are unaffected.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (State Bank of India and its associates, Nationalised banks, ICICI Bank, HDFC Bank, UTI Bank, IDBI Bank, SHCIL (Stock Holding Corporation of India Limited), Investors holding Relief/Savings Bonds with maturity or interest due on July 1, 2005), your first concrete step on “RBI Annual Closing: Relief/Savings Bonds Interest on July 1, 2005” is: “Instruct dealing branches to credit investors' accounts on July 1, 2005, for Relief/Savings Bonds interest/maturity due that day.” (RBI issued this 20 Jun 2005).
Circular: RBI/2004-05/499 -- RBI Annual Closing: Relief/Savings Bonds Interest on July 1, 2005
Issued: 20 Jun 2005
Action required: Instruct dealing branches to credit investors' accounts on July 1, 2005, for Relief/Savings Bonds interest/maturity due that day.
Action required: Ensure ECS credits are processed on July 1, 2005, for investors who opted for electronic clearing.
Action required: Verify that no customer complaints arise from delayed payments due to RBI's annual closing.
Action required: Coordinate with SHCIL and other agencies to confirm bond payment schedules are unaffected.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2296&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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