Master
Circular on Nomination facility in Relief/Savings Bonds
The
Department of Government and Bank Accounts, Central Office, RBI has been
issuing instructions relating to nomination facility for Relief / Savings bond
holders from time to time. In order to enable Public Debt Offices/Agency Banks
to have all the currently operative instructions on the above subject at one
place, a revised Master Circular on ‘Nomination facility in Relief / Savings
Bonds’ has been prepared which is updated upto 30th June every year. Accordingly, the amended
circular giving the updation upto 30.06.2009 is enclosed. You may also access
the circular on our website www.rbi.org.in
Master Circular - Relief
Bond/Saving Bond Schemes Nomination facility
i. A sole holder or all
the joint holders (investors) of a Relief/Savings Bond other than in the form
of promissory note or bearer bond may nominate one or more persons who in the
event of death of the sole holder/all the joint holders, as the case may be,
would be entitled to the Relief/Savings Bond and to the payment thereon,
provided that the person or each of the persons nominated is himself / herself
competent to hold a similar bond.
ii.
The nomination should be made before maturity of the bond.
iii.
When nomination has been made in favour of two or more nominees, in the event
of the death of either or any of them, the surviving nominee or nominees, as the
case may be, shall be entitled to the Relief/Savings Bond and payment thereon.
iv.
A nomination made by the holder(s) of a Relief/Savings Bond may be varied or
cancelled by making a fresh nomination in the prescribed manner and intimating
the same in writing to the Reserve Bank of India/designated branch of
authorised public/private sector bank.
v.
If the nominee is a minor, the holder(s) of the Relief/Savings Bond may appoint
any person, not being a minor, to receive the proceeds of a Relief/Savings Bond
on behalf of the nominee in the event of his/her/their death during the
minority of the nominee.
vi.
The investor(s) may make separate nomination for each deposit in a BLA (subject
to II above).
vii.
Offices/Agency Banks to issue ‘Acknowledgement of Nomination’.
viii.
In case of
6.5 % Savings Bonds, 2003 (Non-Taxable) and 8 % Savings (Taxable) Bonds, 2003,
the sole holder or all the joint holders can also nominate a Non-resident
Indian (NRI) as his/her/their nominee(s) and remittance of interest payment
and/or maturity value, as the case may be, will be governed by the regulations
as applicable to NRIs.
Exceptions
– No nomination is permissible in the following cases:-
(a)
When the Certificate/BLA is held by an adult on behalf of a minor;
(b)
When the holder has no beneficial interest in the Certificate but holds it in
an official or fiduciary capacity.
Cancellation
of Nomination:
A nomination previously made will stand automatically cancelled -
(a)
if the holder(s) applies to PDO/Agency banks for substitution or cancellation
and the substitution and cancellation is duly registered by the office;
(b)
if the
holder(s) transfers the Certificate.
The
various circulars issued by this Department based on which the above Master
Circular is prepared are listed below.
i)
(Ref. Memorandum of Procedure Page 3)
ii)
(Ref.CO.DT.13.01.201/4087/2000-01 dt.16-2-2001)
iii)
(Ref.CO.DT.13.01.201/4854/2000-01 dt.19-3-2001)
iv)
(Ref.CO.DT.13.01.298/H-3410/2003-04
dt.20-12-2003)
v)
(Ref.CO.DT.13.01.299/H-3426/2003-04 dt.20-12-2003)
vi)
(Ref. DGBA.CDD. No.H-2173/13.01.299/2008-09 dated September 2, 2008)
(In case detailed clarifications are required on specific
issues, the circulars indicated above may please be referred to.)