August 11, 2003
All the operating offices of Member Lending Institutions
Circular No. 12/ 2003-04
Dear Sir / Madam,
Payment of Annual Service Fees for FY 2003 in respect of Guaranteed Accounts
Please refer to our Circular No.10/2003-04 dated April 9, 2003 regarding payment of annual service fee @ 1% p.a. on the outstanding in borrower's account as on March 31, 2003 in respect of the units covered under the guarantee scheme. The annual service fee was payable for continuing the guarantee cover as per the provisions of the scheme by May 31, 2003.
It was also indicated that in the event of non-payment of annual service fee by May 31, 2003; the Member Lending Institutions (MLIs) are required to pay penal interest on the annual service fees due and unpaid, w.e.f. June 01, 2003 at 4% over prevailing Bank rate for the actual period of delay. The last date for payment of annual service fee along with penal interest was July 31, 2003.
In view of the various representations received from the MLIs, it has been decided to extend the last date for payment of annual service fee, along with penal interest, up to September 30, 2003 . The guarantee cover issued by CGTSI in respect of borrower accounts would be cancelled if the annual service fee with penalty were not received by the extended date i.e. September 30, 2003.
We, therefore, request you to remit the annual service fee immediately, if not already remitted for continuing the guarantee cover in respect of guaranteed accounts.
Chief Executive Officer