pajment of interest. As stated above, to maintain SLR levels, every bank subscribes to such loans. This is a part of banking business. llorr,ever, after so subscribing, the banks are frec to deal wrth such securities like any other tradcr. Therefore, there are two activities involved--one activity is that of subscribrng to the loan and the other is trading. Now, if a bank purchased 4.ZS per cent_ GOI Loan, 1980, f. v. Rs. 5 lakhs on August 11, 19|6. then, on purchase, the said bank was required to lodgc the transfer form with the pDO. On such lodgement, the name of the bank was entered in the pDO ledger. Therefore, on the next due date for payment of interest, namely, November 12,1976, the bank was entided to receive half yearlv interest from the Reserve Bank of [ndia for the period May 12, 1926, up to November 12, 1976, even though it had bought the sard security on August 11, 1976. Therefore, it receives interest for the entire six months, though it bought the security on August l l, 1976. In the above example, since the security was sold/ transferred on August ll, 1976 (i.e., after due date for payment of interest), interest had accrued to the transferor/ seller from the last due date, i.e,, May 12, t976 up to August tl, 1976."
