What changed
Previously, issuance of Certificate of Holding for 8% Savings (Taxable) Bonds 2003 could take longer. Now, if the application is accompanied by a cheque/draft drawn on the same branch, designated branches must issue the certificate and open the Bond Ledger Account on the same day, subject to immediate clearance of the instrument.
What it means for you
Banks need to streamline their internal processes to ensure same-day processing for eligible applications, improving customer service. This reduces turnaround time for investors and enhances the attractiveness of the bond. Designated branches must also display this facility on their notice boards.
What you must do
- Advise designated branches to issue Certificate of Holding and open Bond Ledger Accounts on the same day for applications with same-branch cheques/drafts.
- Ensure immediate clearance of such cheques/drafts to comply with the same-day issuance requirement.
- Direct branches to prominently display this facility on their notice boards for investor awareness.
Who it affects
State Bank of India and associate banks, 17 nationalised banks, UTI Bank, ICICI Bank, HDFC Bank, IDBI Bank, Stock Holding Corporation of India Ltd, Investors in 8% Savings (Taxable) Bonds 2003
What is the key benefit of this circular for investors?
Investors applying with a cheque/draft drawn on the same branch will receive their Certificate of Holding on the same day, reducing waiting time.
Does this apply to all bond applications?
No, it applies only to applications for 8% Savings (Taxable) Bonds 2003 where the payment instrument is drawn on the same branch where the application is submitted.
What must banks do to comply?
Banks must ensure same-day processing and clearance of the cheque/draft, issue the certificate, and display the facility on notice boards.