RBI issues Operational Guidelines for Sovereign Gold Bond Scheme 2018-19

Oct 09, 2018 | by Avantis RegTech Legal Research Team


The Reserve Bank of India (RBI) on October 08, 2018 has issued Operational Guidelines with regard to Sovereign Gold Bond Scheme 2018-19.

The RBI has issued Operational Guidelines with reference to the GoI notification F.No.4(22)-W&M/2018 and RBI circular IDMD.CDD.No.  /14.04.050/2018-19 dated October 08, 2018 on the Sovereign Gold Bonds.

Operational Guidelines with regard to the Scheme are as under:

·         Application:

Application forms from investors will be received at branches during normal banking hours on the weeks of subscription. Receiving Offices need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected. Relevant additional details may be obtained from the applicants, where necessary. The Receiving Offices may make arrangements to enable the investors to apply online, in the interest of better customer service. 

·         Joint holding and nomination:  

Multiple joint holders and nominees (of first holder) are permitted. An individual Non - resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that:

                           i.            The Non-Resident investor shall need to hold the security till early redemption or till maturity; and

                         ii.            The interest and maturity proceeds of the investment shall not be repatriable.

·         Know-Your-Customer (KYC) requirements:

Every application must be accompanied by the ‘PAN Number’ issued by the Income Tax Department to the investor(s). It may be ascertained from the investor, if he/she has made a previous investment in Sovereign Gold Bonds (SGBs) or Inflation Indexed National Saving Securities-Cumulative (IINSC-C) and hence in possession of an Investor ID. If so, the investments may be made under the unique Investor ID only.

·         Cancellation of application is permitted till the closure of the issue, i.e. until Friday of the particular week of subscription.

·         Lien marking will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under.

·         Agency arrangement: 

Receiving Offices may engage NBFCs, NSC agents and others to collect application forms on their behalf. Banks may enter into arrangements or tie-ups with such entities.

·         Processing through RBI’s e-Kuber system:

       Sovereign Gold Bonds will be available for subscription at the Receiving Offices through RBI’s e- Kuber system. The e-Kuber system can be accessed either through INFINET or Internet. On the date of allotment, Certificates of Holding will be generated for all the subscriptions in the name of the sole/principal holder. The securities will be credited in investors de-mat accounts by the depositories, in due course, subject to matching of particulars furnished in the application with the depositories’ records.

·         Receiving Offices will “own” the customer and provide necessary services with regards to this bond and required to preserve applications till the bonds are matured and are repaid.  

·         The Bonds shall be eligible for trading on a date notified by the Reserve Bank of India. (It may be noted that only bonds held in demat form with depositories can be traded in stock exchanges).

[IDMD.CDD.No.822/14.04.050/2018-19]

URL: https://m.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=11389            

 

 


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