Govt announces issue of Special Bonds worth Rs7,000 crore

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by the banks and insurance companies will not be reckoned as an eligible investment in government bonds for their statutory requirements, the Finance Ministry said in a statement

New Delhi: The government announced issue of Special Floating Rate Bond worth Rs7,000 crore.

 “The Special Bonds are being issued at par to Department of Post as of 30 March 2012, as part conversion of the frozen corpus of Post Office Life Insurance Fund (POLIF) and Rural Post Life Insurance Fund (RPOLIF),” the Finance Ministry said in a statement.

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by the banks and insurance companies will not be reckoned as an eligible investment in government bonds for their statutory requirements, it added.

However, such investment by the insurance companies will be eligible to be reckoned as investment under 'other Approved Bonds'.

Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, in the bonds will be treated as an eligible investment, the ministry said.

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Karur Vysya in tie-up with M&M to provide vehicle finance

Under the agreement, M&M (Mahindra and Mahindra) customers will be able to avail of vehicle finance from any of the 450-plus branches of KVB (Karur Vysya Bank),” a bank release said

Mumbai: Private sector lender, Karur Vysya Bank (KVB) has signed a preferred financier agreement with automotive major Mahindra and Mahindra for providing auto finance to its customers.

“Under the agreement, M&M customers will be able to avail of vehicle finance from any of the 450-plus branches of KVB,” a bank release said.

Chief executive officer and managing director of Karur Vysya Bank, K Venkataraman, said, “KVB is expanding its operations in commercial and passenger vehicle financing. Customers of KVB will be benefited out of this tie-up since they will have privileged access to the specialised services of M & M along with provision of loans for purchase of vehicles at a comparatively low EMI.”

 M&M said that they expect good response from dealers and customers post this arrangement.

 “KVB’s specialised rates for bus operators, educational institutions and medium and small enterprises will help Mahindra BOP and CV product range customers. With highly competitive schemes for car loans and commercial vehicles, we are hopeful of a good response from our dealers and customers,” senior vice president, sales and customer care (automotive division) of M&M, Arun Malhotra said.

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