Mumbai: The Maharashtra Government has announced the repayment of the outstanding balance of the 8.08% Maharashtra State Development Loan (MSDL) 2026, which was earlier raised through the open market. The repayment, along with interest accrued up to June 14, 2026, will be made at par on June 15, 2026, according to a press release issued by the Finance Department.
The government stated that if June 15, 2026 is declared a holiday under the Negotiable Instruments Act, 1881, the repayment will be processed on the preceding working day through the state’s Public Debt Office. No further interest will be payable on the loan from June 15, 2026 onwards.
As per the Government Securities Regulations, 2007, repayment amounts for registered holders of government securities maintained in Subsidiary General Ledger Accounts or in bond certificate form will be credited electronically to their bank accounts through authorised payment arrangements.
Bondholders have been instructed to provide their bank account details to the concerned bank, treasury, sub-treasury, or designated branch of the State Bank of India where their interest payments are registered.
In cases where electronic payment instructions or bank details are not available, holders of the 8.08% Maharashtra State Development Loan 2026 have been advised to submit their bond certificates to the Public Debt Office at least 20 days before the repayment date to ensure smooth processing. The certificates should include an endorsement on the reverse side acknowledging receipt of the principal amount.
The Finance Department further clarified that in places where treasury operations are conducted through the State Bank of India or its associate banks, physical bond certificates must be submitted only at the concerned bank branch and not at treasury or sub-treasury offices.
Bondholders wishing to receive payment at locations other than the designated repayment centres should send their securities by registered and insured post to the concerned Public Debt Office. The repayment amount will then be issued through demand drafts payable at any treasury, sub-treasury, or authorised State Bank of India branch functioning as a government treasury in Maharashtra, the statement added.
