Payment of interest on a Government security shall be made and acknowledged in the following manner:- [(1) Government Promissory Note.- (a) Interest may be made payable.
(a) in the case of a promissory note of the Central Government at any treasury or sub-treasury in India or at any public Debt Office,
(b) in the case of a promissory note of a State Government at any treasury or sub-treasury in the State concerned or at any public Debt Office, subject to compliance by the holder with such formalities as the Public Debt Office may require and interest shall accordingly be paid at such treasury, sub-treasury or Public Debt Office on presentation of the note itself.
Provided that at a place where a Public Office is located, the interest on a Government promissory note shall not be payable at a treasury or sub-treasury at that place.
(b) Where interest on a Government promissory note is made payable at a Public Debt Office, it shall on presentation of the Government promissory note, issue an interest warrant in favour of the holder payable at the local office of the Bank or any other bank acting as agent or sub-agent of the Bank.
(c) The payee shall give a receipt in Form IV on receipt of interest in cash from a Treasury or Sub-treasury.
(d) Notwithstanding anything contained in clause (a), a Public Debt Office may pay interest on a Government promissory note, the interest on which is payable at a treasury or sub-treasury.
(2) Stock.- Interest on stock shall be paid by warrants issued by the Public Debt Office and payable at the local office of the Bank, or any other bank (acting as agent or sub-agent of the Bank), or, if the holder so desires, by money order after deducting the commission charges. Such warrants may, at the request, in writing of the holder of the stock to the Public Debt Office, be made payable subject to compliance by the holder with such formalities as the Public Debt Office may require.
(a) In the case of stock of a loan of the Central Government, at any other office of the Reserve Bank of India or any agency or sub-agency thereof conducting Government treasury business or at any non-banking treasury or sub-treasury in India:
(b) In the case of stock of a loan of a State Government, at any other office of the Reserve Bank of India or any agency or sub-agency thereof conducting Government treasury business in the State concerned or at any non-banking treasury or sub-treasury within that State.
The presentation of stock certificate shall not be required at the time of payment of interest but the payee shall acknowledge receipt at the back of the warrant.]
(3) Bearer Bond.- Interest on a bearer bond shall be paid to any person who presents the coupon entitling him to such interest at the Public Debt Office or the treasury in Pakistan at which the bond is registered for payment of interest.
[(a) Treasury Savings Deposit Certificate or Defence Deposit Certificate.- (a) Subject to the presentation of the Treasury Savings Deposit Certificate or the Defence Deposit Certificate, as the case may be and compliance by the holder thereof with such formalities as the Public Debt Office may require him to comply with, interest may be made payable on:
(i) a Treasury Savings Deposit Certificate at a Public Debt Office or a treasury or Sub-treasury in India;
(ii) a Defence Deposit Certificate, at a Public Debt Office or a treasury or sub-treasury in India or any Head Post Office or departmental Sub-Post Office doing savings bank work.
Provided that at a place where a Public Debt Office is located, the interest on a Certificate shall not be payable at a treasury or sub-treasury at that place:
Provided further that where interest is made payable at a Post Office, such interest shall be paid only by crediting the amount in a savings bank account in that Post Office in the name of the holder or in the names of the holder and any other person or persons.
(b) The payee shall give a receipt in Form IVA in case the interest is made payable at a treasury or sub-treasury and in Form IVB if it is made payable at a Post Office.
(c) Where interest on a Certificate is made payable at a Public Debt Office, that office shall on presentation of the said certificate, issue an interest warrant in favour of the holder payable at the local office of the Bank or any other bank acting as agent or sub-agent of the Bank.
(d) Notwithstanding anything contained in the foregoing clauses, a Public Debt Office may pay interest on a Certificate, the interest on which is payable at a treasury or sub-treasury or a Head Post Office or a departmental sub-Post Office doing savings bank work.
(4) Interest on securities transferred to London shall be paid by interest drafts, issued by the State Bank of India, London, payable in rupees at the offices or branches of the Bank at Bombay, Calcutta, New Delhi, Madras, Bangalore or Nagpur.]
(5) Notwithstanding anything contained in the sub-rules of this rule, the Bank may arrange for payment of interest on a Government security at any place not provided herein.