interest rates on relief bonds cut
mumbai: relief bonds issued on or after 1 march will bear an interest rate of eight per cent as against 8.5 per cent earlier. this follows the 50 basis points cut on the tax-free relief bonds in the union budget 2002-03.

rbi said that simultaneously, the sale of bonds bearing interest of 8.50 per cent per annum will cease.

rbi further clarified that the bonds issued under the earlier scheme namely the nine per cent relief bonds 1987, 10 per cent relief bonds 1993, nine per cent relief bonds 1993, 10 per cent relief bonds 1995, nine per cent relief bonds 1999 and 8.5 per cent relief bonds 2001 will carry post maturity interest at the rate of eight per cent with effect from 1 march.

2 march 2002