Repayment of 8.9% Maharashtra State Development Loan, 2024

Mumbai : The Government of Maharashtra has announced that the remaining balance of the 8.9% Maharashtra State Development Loan, 2024, which was previously raised from the open market, will be repaid at par on September 24, 2024, along with the interest due up to September 23, 2024. This was communicated by Mrs. Shaila A., Secretary of the Finance Department (Financial Reforms), through a press release.

If the Government of Maharashtra declares a holiday on the aforementioned date under the “Negotiable Instruments Act, 1881,” the repayment will be made on the preceding working day by the relevant treasury offices in the state. No interest will be paid on this loan from September 24, 2024, onwards.

As per sub-regulations 24(2) and 24(3) of the Government Securities Regulations, 2007, the proceeds for the holders of the maturing securities, whether in the form of Subsidiary General Ledger accounts or Stock Certificates, will be credited electronically to the holder’s bank account with any bank that has the facility for electronic funds transfer. The order for this transfer will include the necessary bank account details. For those original subscribers or subsequent holders of the securities, payments will be made to the bank or treasury or to the sub-treasury of the branch of the State Bank of India where they have been registered for interest payment.

However, in the absence of relevant bank account details or electronic transfer instructions, to facilitate timely repayment, holders of the 8.9% Maharashtra State Development Loan, 2024, are requested to submit their bonds to the Public Debt Office at least 20 days before the maturity date. The bonds should be appropriately endorsed on the back with the note “Principal amount due on the certificate received” before submitting them for repayment.

It is particularly noted that if the bonds are in the form of stock certificates, they should be submitted to the respective branch of the bank where treasury functions are carried out and not to the treasury or sub-treasury directly. Bondholders who wish to receive payments at locations other than those designated for the disbursement of such amounts should send the bonds, duly registered and insured, to the relevant Public Debt Office. The Public Debt Office will process the payment through the relevant treasury or sub-treasury of any branch of the State Bank of India or its associate banks that function as government treasuries in Maharashtra, as stated in the press release by the Finance Department.