Historically these bonds were associated with the debt securities offered by Bank of England. However today the term is frequent in practice among Commonwealth nations. However in Indian context the “guilt” securities refer to the account maintained by the custodian bank with the purpose of servicing the dematerialized government securities.
Raising fund through guilt has been a very popular method to fund large spending areas like big infrastructure projects or wars when the government income from the tax payers contribution was not sufficient. Many of these guilt bonds were men to act as perpetual bonds as they had no maturity dates on them.