Govt to infuse Rs 14,500 crore in 4 banks, issue recapitalisation bonds

Special securities shall be non-interest bearing and no interest shall be payable on issue of the securities

The government has announced an infusion of Rs 14,500 crore into Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank by issuing non-interest bearing bonds to them despite reservations raised by the Reserve Bank of India (RBI) over the use of this instrument.
 
The recapitalisation bonds would be issued with six different maturities and would be at par for the amount, in line with the application made by the eligible banks. The special securities would be repayable at par on the date of maturity.
 
No interest would be payable on issue of these securities,