(a) whether the redemption of Resurgent India Bonds raised by the State Bank of India (SBI)
in 1998 was due on October 1, 2003;
(b) if so, the total amount fetched through these bonds and the terms attached to the
payment on money consequent on the redemption of bonds;
(c) whether liability of the Government is reduced considerably as a result of the
appreciation of rupee during the recent months; and
(d) if so, the details thereof?
FINANCE MINISTER (SHRI JASWANT SINGH)
(a) to (d): A Statement is placed on the Table of the House
STATEMENT REFERRED IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA STARRED QUESTION NO. 275
FOR 19-12-2003 REGARDING `REDEMPTION OF RIB`.
(a): Yes, Madam.
(b): State Bank of India had raised equivalent of US Dollars 4.23 billion through
Resurgent India Bonds (RIBs). RIBs were raised at the interest rate of 7.75%, 8% and
6.25% for US Dollars (USD), Pound streling (GBP) and German Mark (DM/EURO) deposits
respectively. On maturity, repayment was to be in foreign currency, viz. US Dollar,
Pound streling, Euro depending on the case. If the holder became a resident in India
before maturity of the bonds, he had the option of receiving the entire principal
amount and interest due thereon either in foreign currency by credit to a Resident
Foreign Currency account or in non-repatriable Indian rupees. In case a survivor or donee
became a resident in India, the entire principal amount and interest due thereon were paid
in non-repatriable Indian rupees.
(c): Yes, Madam.
(d): While the rupee has appreciated against US Dollar, it has depreciated against
Pound streling and Euro currencies during the year 2003-04. Reserve Bank of India has informed
that the exact reduction in the liability of Government as a result of the appreciation of rupee
will be known only at the end of the financial year.