Scheme for Constitution and Administration of the Guarantee Redemption Fund of Government of National Capital Territory of Delhi
The Gazette of India
SG-DL-E-04082026-275165
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 206] DELHI, WEDNESDAY, JULY 29, 2026/SHRAVAN 7, 1948 [N. C. T. D. No. 136
FINANCE DEPARTMENT
(Public Finance Cell)
NOTIFICATION
Delhi, the 29th July, 2026
No.F.FIN-PF/2/2026-PF-FD/345812/209.— The Lt. Governor of Government of NCT of Delhi is
pleased to constitute the following scheme to be known as the Scheme for Constitution and Administration
of the Guarantee Redemption Fund of Government of National Capital Territory of Delhi.
Scheme for Constitution and Administration of the
Guarantee Redemption Fund of Government of National Capital Territory of Delhi
Title of the Scheme 1 The Scheme shall be called ‘Guarantee Redemption Fund
(hereinafter referred to as ‘the Fund’) Scheme of the Government of
National Capital Territory of Delhi’.
2 A ‘Guarantee Redemption Fund’ shall be constituted by the
Government of National Capital Territory of Delhi (hereinafter
called the Government) for meeting its obligations arising out of the
Guarantees issued on behalf of State Level Public Sector
Undertakings or Other Bodies.
The Fund shall be constituted in the Public Account and classified
under the head “Major Head – 8235– General and Other Reserve
Redemption Fund” in the accounts of the Government.
3 The Fund shall be utilised for meeting the payment obligations
arising out of the guarantees issued by the Government in respect of
bonds issued and other borrowings by the State Level Public Sector
Undertakings or Other Bodies and invoked by the beneficiaries.
The accumulations in the Fund shall be utilized only towards the
payment of the guarantees issued by the Government and invoked by
the beneficiary and not paid by the institution on whose behalf
guarantee was issued.
The State can avail of short-term accommodation under Special
Drawing Facility (SDF) from Reserve Bank of India (hereinafter
referred to as ‘the Bank’) against the collateral of investment made
in GRF for meeting temporary cashflow mismatches, subject to the
terms and conditions as fixed by the Bank from time to time.
4 The Scheme shall come into force with effect from the date of the
notification.
5 (a) The Government should make conscious efforts towards
building up the GRF corpus to five per cent of the outstanding
guarantees within a span of five years
from the date of constitution of the Fund.
(b) It is open to the Government to increase the contributions to
the Fund at its discretion and also based on its assessment of likely
invocation of guarantees. The balance in the Fund shall be increased
with periodic contributions made annually or at shorter intervals.
(c) In order to enable transfer of the total amount of contribution
to the Fund, the Government would make suitable Budget provision
under the Revenue Expenditure side of the budget under the head
“Major Head – 2075- Miscellaneous General Services; Sub Major
Head – 00; Minor Head – 797 Transfer to Reserve Fund / Deposit
Account; 99- Guarantee Redemption Fund, 00, Object Head 63-
Inter – account Transfer”.
(d) The Government shall not fund its contribution to the Fund out
of borrowings from the Bank.
(a) The corpus of the Fund comprises an initial amount demarcated
by the Government, annual or other contributions made by the
Government thereto as also periodic accretions by way of
Guarantee Commission to be collected from the institutions in
respect of whose bonds / obligations Government will issue the
guarantees, in addition to the income accruing to the Fund.
(b) The Fund shall be kept outside the General Revenues of the
Government and shall be utilized only in the manner prescribed in
this Scheme.
Administration of the
Fund 7 The Fund shall be administered by Central Accounts Section of the
Bank subject to such directions/ instructions as the Government
may issue from time to time.
8 The accretions to the Fund together with the income earned on the
investment of the Fund shall be invested in Government of India
(GoI) Dated Securities, Treasury Bills, Special Securities of the
GoI and State Government Securities of other States of such
maturities as the Bank may determine from time to time. The Bank
shall make available the securities for investment either from its
investment portfolio or by acquiring the securities from the
secondary market, without loading any charge other than that
indicated in paragraph 11.
9 (a) The responsibility for the administration of the Fund will rest
with the Government. The Government will decide all matters
connected with the investment of the corpus of the Fund,
reinvestment / dis-investment, obligations and application of the
Fund, etc.
(b) The Government will, from time to time, issue instructions to the
Bank. The Bank will immediately arrange to make the necessary
investment. The Bank would scroll to the Government the debit on
account of the investment and other incidental charges like
brokerage, commission, etc. in the usual course. However, in order
to ensure that the investment transactions of the Fund do not get
mixed up with other transactions, these may be indicated distinctly
in separate scrolls.
(c) On receipt of the scrolls the investment transactions would be
accounted for under the head “Major Head – 2075- Miscellaneous
General Services; Sub Major Head – 00; Minor Head – 797
Transfer to Reserve Fund / Deposit Account; Object Head 63-
Inter – account Transfer”. However, the incidental charges like
brokerage, commission, etc., shall be accounted for as a charge on
the Fund.
(d) The Bank will arrange to collect interest on these securities and
credit the same to the Fund on due date. Further, these would require
to be invested as in the case of the contributions by the Government
i.e., in accordance with the investment norms prescribed in para 8
above.
(e) On maturity of the securities, the proceeds will be collected and
credited to the account of the Government or reinvested in
accordance with the pattern outlined in para 8 above on the basis of
instructions received from the Government. As in the case of the
debit scrolls, the Bank shall use separate scrolls, for the receipts.
(f) On receipt of instructions from the Government, the Bank will
arrange to sell the securities at the ruling price and credit the amount
realized, less incidental charges, to the account of the Government.
If these securities are in loss, Bank may in consultation with the
Government decide on the securities to be liquidated.
(g) The receipts on account of maturity or sale of the securities
would be taken into the account of the “Guarantee Redemption
Fund Investment Account”.
The incidental charges on sale would be charged to the Fund.
(h) The provision for expenditure on account of the Guarantee
Redemption will be made in the budget of the Government under
the relevant heads. Only the actual amount of guarantee redemption
expenditure shall be brought in account under the Revenue
Expenditure Head “Major Head – 2075-Miscellaneous General
Services; Sub Major Head – 00, Minor Head-800 Other
Expenditure- Payment of Guarantee Value invoke.”
(i) The Bank shall arrange to redeem the securities on maturity. In
case of premature disinvestments to meet the liability on account of
the claims to be paid, the Bank shall decide on the securities to be
liquidated and sell the securities at the ruling price and credit the
amount realized, less incidental charges, to the Government account.
If these securities are in loss, Bank may in consultation with the
Government decide on the securities to be liquidated.
(j) The Government will pay the Bank, a commission at the rate
determined by the Bank in consultation with the Government. These
charges shall also be borne by the Fund as in the case of the charges
indicated in paras 9(c) and 9(g). The loss or gain on the sale of
securities shall also be taken to the Account of the Fund.
Explanation
(a) The debit to Government on account of such withdrawal will be
accounted under the major head “8235
– General and Other Reserve Fund-117 – Guarantee Redemption
Fund – Investment Account”. On the maturity of the loan the balance
outstanding under the head “8235 – General and Other Reserve
Fund-117 – Guarantee Redemption Fund – Investment Account” is
credited to the Head “8680-00-101 – Ledger Balance Adjustment
Account”.
(b) The Bank would scroll to the Government the debit on account
of investment less the incidental charges in the usual course.
However, in order to ensure that the investment transactions of the
Fund do not get mixed up with other transactions, these will be
indicated distinctly in separate scrolls.
(c) The Bank will arrange to collect interest on the
investments and credit the same to the Fund on the due dates.
(d) On the maturity of the securities, the Bank will arrange to redeem
the securities and in case of premature disinvestment, to sell the
securities at the ruling price and credit the amount realized, less
incidental charges to the Guarantee Redemption Fund Investment
Account. As in the case of debit scrolls, the Bank shall use separate
scrolls for the receipts.
(e) The provision for expenditure on account of the periodic
contributions will be made in the Budget of the Government under
the relevant head. The extent of expenditure to be financed from the
Fund shall be withdrawn from the Fund by the disposal of the
investment.
10 (a) The Bank will be guided by the directions of the Government
in all matters concerning the investment / reinvestment / disinvestment / reallocation / withdrawals time to time of the Fund and
will act accordingly.
(b) The Bank would arrange to raise a debit to the account of the
Government maintained with it as per the schedule of contributions
set out in paragraph 5.
(c) The contributions to the Fund shall be invested by the Bank as
indicated in paragraph 8. The periodic accretion to the Fund by way
of guarantee commission, contributions by the Government and
interest income shall also be invested by the Bank in a similar
manner.
(d) 50 per cent of the outstanding corpus held in the GRF as on March
31 of the preceding financial year, or the amount of guarantees
invoked during the year (April – March), whichever is less, should
be reckoned for arriving at the maximum eligible limit for
withdrawal from the GRF during the year. The Government will
replenish the corpus before seeking the next withdrawal.
(e) The Bank willsubmit periodical statement of balances
/ advices regarding the changes therein in consultation with the
Government.
11 The Government will pay to Bank a commission at the rate of 1/8
per cent of one per cent of the turnover of the Fund or at the rate to
be mutually decided from time to time.
Account and Audit 12 The accounts of the Fund and the investments shall be maintained by
the Chief Controller of Accounts / Principal Accounts Office of
the State in the normal course. The concerned Department of the
Government will maintain subsidiary accounts in such manner and
detail as may be considered by the Government in consultation with
the Chief Controller of Accounts / Principal Accounts Office.
Savings 13 The Government shall issue instructions relating to the provisions
of the Scheme as may be considered from time to time to enable
smooth functioning of the Scheme. In case of any difficulty in the
operation of any provision of the Scheme, the Government may, if
satisfied, relax the provisions.
By order and in the name of the Lt. Governor of
the National Capital Territory of Delhi
SANTOSH D. VAIDYA, PR. Secy. (Finance)
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