What changed
RBI issued a master circular bringing together all previous instructions on nomination facility for Relief/Savings Bonds. This replaces earlier standalone circulars with a single reference document for agency banks and offices.
What it means for you
Banks and agencies now have a consolidated source for nomination rules, reducing confusion from multiple circulars. The rules remain unchanged but are easier to implement and audit. This helps ensure consistent processing of nomination requests and claims across all authorized entities.
What you must do
- Update internal manuals and staff training materials to reference this master circular as the single source for nomination procedures.
- Ensure branch staff can correctly process nominations, including for NRIs under 6.5% and 8% Savings Bonds 2003.
- Verify that acknowledgment of nomination is issued to all bond holders who submit a nomination request.
- Review existing nomination records to ensure compliance with cancellation rules, especially on transfer of certificates.
Who it affects
State Bank of India and associate banks, 17 nationalized banks, ICICI Bank, IDBI Bank, HDFC Bank, UTI Bank, Stock Holding Corporation of India Ltd, All agency banks handling Relief/Savings Bonds
Can a joint holder make a nomination?
No, nomination is not permitted when the certificate is held jointly and both holders are alive. Only a sole holder or sole surviving holder can nominate.
Can an NRI be nominated for these bonds?
Yes, for 6.5% Savings Bonds 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds 2003, the sole holder can nominate an NRI. Foreign remittance of interest or maturity value will follow normal NRI regulations.
What happens to a nomination if the bond is transferred?
The nomination stands cancelled automatically upon transfer of the certificate. A fresh nomination would need to be made by the new holder.