INDIAN RAILWAY FINANCE CORPORATION LIMITED

For all Categories, the Tranche-1 Series I Bonds and Tranche-1 Series II Bonds shall carry interest at thecoupon rate of 7.18% p.a. and 7.34% p.a., respectively, payable annually from, and including, the DeemedDate of Allotment up to, but excluding, their respective Maturity Dates, payable on the ―Interest PaymentDate, to the Bondholders as of the relevant Record Date.However, we will pay an additional interest at the rate of 0.50% p.a. to all Allottees under Category IV forTranche-1 Series I Bonds and Tranche-1 Series II Bonds. Accordingly, the Tranche-1 Series I Bonds andTranche-1 Series II Bonds Allotted to Category IV Investors will carry an aggregate coupon rate of 7.68%p.a. and 7.84% p.a., respectively, payable annually from, and including, the Deemed Date of Allotment upto, but excluding their respective Maturity Dates, payable on the ―Interest Payment Date, to theBondholders as of the relevant Record Date. The annualized yield to Category IV Allottees would be 7.68%p.a. and 7.84% p.a. for the Tranche-1 Series I and Tranche-1 Series II Bonds, respectively.Please note that such additional interest shall only be available to the original Allottees under Category IVfor the Tranche-1 Series I Bonds and the Tranche-1 Series II Bonds. In such case, in the event the Bondsheld by the original Allottees under Category IV are sold/ transferred (except in case of transfer of Bonds tolegal heir in the event of death of the original Allottee), the coupon rate shall stand revised to the couponrate applicable for Allottees falling under Category I, Category II and Category III. The Registrar to theIssue will monitor this process by comparing the list of bondholders as on record date with list of originalallottees under Category IV.Please note that for the purpose of classifying the Investors into various categories, the Applications will beconsolidated on the basis of PAN. Consequent to such consolidation of applications, the Applicant may fallin a category other than the one under which the Applicant has applied and interest shall be paidaccordingly.8.2. Day count conventionInterest on the Bonds shall be computed on an actual/ actual basis on the principal outstanding on the Bonds.8.3. Interest on Application Amounts8.3.1 Interest on application monies received which are used towards allotment of BondsWe shall pay interest on Application Amounts on the amount Allotted, subject to deduction ofincome tax under the provisions of the Income Tax Act, as applicable, to any Applicants to whomBonds are allotted (except for ASBA Applicants) pursuant to the Issue from the date of realization ofthe cheque(s)/demand draft(s) or three Business Days from the date of banking of the application(being the date of submission of upload of each Application on the electronic Application platform ofthe relevant stock exchanges) whichever is later upto one day prior to the Deemed Date of Allotment,at the rate of 7.18% per annum and 7.34% per annum for the Tranche-1 Series I Bonds and Tranche-1 Series II Bonds, respectively for Allottees under Categories I, II and III and 7.68% per annum and7.84% per annum for the Tranche – 1 Series I Bonds and Tranche – 1 Series II Bonds, respectivelyfor Allottees under Categories IV.A tax deduction certificate will be issued for the amount of income tax so deducted.We may enter into an arrangement with one or more banks in one or more cities for direct credit ofinterest to the account of the applicants. Alternatively, interest warrants will be dispatched along withthe Letter(s) of Allotment at the sole risk of the applicant, to the sole/first applicant.8.3.2 Interest on application monies received which are liable to be refundedWe shall pay interest on Application Amounts which is liable to be refunded to the Applicants (otherthan Application Amounts received after the Issue Closure Date, and ASBA Applicants) subject todeduction of income tax under the provisions of the Income Tax Act, as applicable, from the date ofrealization of the cheque(s)/demand draft(s)/any other mode or three days from the date of receipt ofthe Application (being the date of presentation of each Application as acknowledged by the Bankers tothe Issue) whichever is later upto one day prior to the Deemed Date of Allotment, at the rate of 5%p.a. Such interest shall be paid along with the monies liable to be refunded. Interest warrant will be51