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Is the premature encashment of RBI Bonds allowed?

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Premature encashment of the Bonds is not allowed. The Bonds will earn interest upto the date of redemption, if not redeemed on due date. Proceeds can be reinvested. The matured bonds in the form of Promissory Note/existing Stock Certificate will be tendered for reinvestment at Public Debt Offices of Reserve Bank of India only.

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