What changed
RBI observed that some agency banks were opening a new Bond Ledger Account each time an existing investor made a fresh investment in Relief/Savings Bonds, violating the Memorandum of Procedure. The circular reiterates that only one BLA per investor is permitted and instructs banks to merge any existing multiple BLAs into a single account.
What it means for you
Banks must immediately stop the practice of creating separate BLAs for each new investment by the same investor. This will simplify record-keeping and reduce operational errors. Banks need to audit their current BLA records and consolidate any duplicate accounts to comply with the directive.
What you must do
- Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.
- Conduct a review of existing Bond Ledger Accounts to identify any multiple BLAs in the name of the same investor.
- Merge all identified multiple BLAs into a single BLA for each investor and update records accordingly.
- Ensure that no new BLA is opened for an existing investor making a fresh investment; instead, use the existing BLA.
Who it affects
State Bank of India and Associate Banks, 17 Nationalized Banks, ICICI, IDBI, HDFC, UTI Bank, SHCIL (Stock Holding Corporation of India Limited), All designated branches handling Relief/Savings Bonds
What is a Bond Ledger Account (BLA)?
A BLA is the account opened in the name of an investor to record all investments in Relief/Savings Bonds. As per RBI rules, only one BLA is allowed per investor.
What should we do if we find multiple BLAs for the same investor?
You must merge all such BLAs into a single account for that investor. This consolidation should be done promptly to comply with RBI instructions.
Does this circular apply to new investments only?
No, it applies to both new investments and existing accounts. For new investments, use the existing BLA. For existing accounts, review and merge any multiple BLAs.