(1)[ Government Promissory Note.- [Substituted by G.S.R. 109, dated 13.1.1966] (a) Interest may be made payable.(a)in the case of a promissory note of the Central Government at any treasury or sub-treasury in India or at any public Debt Office,(b)in the case of a promissory note of a State Government at any treasury or sub-treasury in the State concerned or at any public Debt Office, subject to compliance by the holder with such formalities as the Public Debt Office may require and interest shall accordingly be paid at such treasury, sub-treasury or Public Debt Office on presentation of the note itself.Provided that at a place where a Public Office is located, the interest on a Government promissory note shall not be payable at a treasury or sub-treasury at that place.(b)Where interest on a Government promissory note is made payable at a Public Debt Office, it shall on presentation of the Government promissory note, issue an interest warrant in favour of the holder payable at the local office of the Bank or any other bank acting as agent or sub-agent of the Bank.(c)The payee shall give a receipt in Form IV on receipt of interest in cash from a Treasury or Sub-treasury.(d)Notwithstanding anything contained in clause (a), a Public Debt Office may pay interest on a Government promissory note, the interest on which is payable at a treasury or sub-treasury.
