Master Circular on Nomination for Relief/Savings Bonds
Current · Source: Reserve Bank of India · RBI/2007-2008/75 · issued 02 Jul 2007 · ~2 min read
Quick answerRBI consolidated all existing instructions on nomination for Relief/Savings Bonds into a single master circular. Key points: sole holders can nominate one or more persons, nominations must be made before maturity, and NRIs can be nominees for specific bond series.
The rule, in the simplest words
A sole holder can nominate one or more persons to receive the bond in case of their death.
Nominations must be made before the bond matures.
NRIs can be nominated for specific bond series, such as 6.5% Savings Bonds, 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds, 2003.
If a nominee is a minor, the holder can appoint another person to receive the bond in their place.
How it plays out — a real example
When a customer, Mr. Kumar, comes to the bank to apply for a 6.5% Savings Bond, 2003, the agency-banking (government business) officer, Ms. Singh, explains to him that he can nominate a Non-Resident Indian (NRI) as his nominee for the interest and redemption value of the investment. Mr. Kumar is pleased with this option and decides to nominate his brother, who lives abroad. Ms. Singh helps him fill out the necessary forms and ensures that the nomination is made before the bond matures.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/75
DGBA.CDD No H - ………./ 13.01.299 / 2007-08
July 2, 2007
Aashadha 11, 1929 (S)
The Chairman / Managing Director
State Bank of India and Associate banks
17 Nationalized banks
ICICI Bank Ltd / IDBI Ltd / HDFC Bank Ltd / UTI Bank Ltd.
Stock Holding Corporation of India Ltd
Dear Sir
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 bonds holders from time to time. In order to enable the Offices/Agency Banks to have all the currently operative instructions on the above subject at one place, a Master Circular on nomination facility in Relief / Savings Bonds has been prepared, which is enclosed. You may also access the circular on our website www.rbi.org.in
Please acknowledge receipt.
Yours faithfully,
(B. K. Mishra)
General Manager
Master Circular
Relief Bond / Saving Bond Schemes
Nomination facility
i. A sole holder or a sole surviving holder of a Bond in the form of Stock Certificate/ Bond Ledger Account (BLA) may nominate one or more persons who shall be entitled to the Bond and payment thereon in the event of his/her death, 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 two or more persons are nominated, in the event of the death of a nominee, the title to the bonds vests in the surviving nominee/s.
iv. A nomination made by a holder of a Bond Ledger Account may be varied by a fresh nomination or may be cancelled by giving notice 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 of a Bond Ledger Account may appoint any person to receive the Bond/amount due in the event of his/her death during the minority of the nominee.
(Ref. Memorandum of Procedure Page 3)
vi. The BLA Account holders are allowed to make separate nomination for each deposit comprised in the Bond Ledger Account even if the deposit in BLA relates to earlier period. (Ref.CO.DT.13.01.201/4854/2000-01 dt.19-3-2001)
vii. Offices/Agency Banks may issue ‘Acknowledgement of Nomination’.
(Ref.CO.DT.13.01.201/4087/2000-01 dt.16-2-2001)
viii. In case of 6.5 % Savings Bonds, 2003 (Non-Taxable) and 8 % Savings (Taxable) Bonds, 2003, the sole holder can nominate a Non-resident Indian (NRI) as his/her nominee in respect of interest/redemption value of the investment in the bonds. In regard to foreign remittance of interest payment and/or maturity value, as the case may be, NRIs will be governed by the normal regulations as applicable to them.
( Ref.CO.DT.13.01.298/H-3410/2003-04 dt.20-12-2003)
( Ref.CO.DT.13.01.299/H-3426/2003-04 dt.20-12-2003)
( Ref.CO.DT.13.01.298/H-4911A/2003-04 dt.9-3-2004)
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; and
(c) When the Certificate is held by two persons jointly and both holders are alive. ( Ref Para 112 of Govt. Securities Manual Page 95)
Cancellation of Nomination : A nomination in respect of Savings Bond will stand cancelled in the following circumstances:
(a) If the holder applies to the Office for substitution or cancellation and the substitution or cancellation is duly registered by the office.
(b) If the holder transfers the Certificate. (Ref. Para 113 of Govt. Securities Manual – Page 96)
In case detailed clarifications are required on specific issues, the circulars/indicated above may please be referred to.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/75 · issued 02 Jul 2007. The plain-English explanation above is BankPulse’s own independent summary.
Ensure branch staff can correctly process nominations, including for NRIs under 6.5% and 8% Savings Bonds 2003.
📜 Compliance
Update internal manuals and staff training materials to reference this master circular as the single source for nomination procedures.
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.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (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), your first concrete step on “Master Circular on Nomination for Relief/Savings Bonds” is: “Update internal manuals and staff training materials to reference this master circular as the single source for nomination procedures.” (RBI issued this 02 Jul 2007).
Circular: RBI/2007-2008/75 -- Master Circular on Nomination for Relief/Savings Bonds
Issued: 02 Jul 2007
Action required: Update internal manuals and staff training materials to reference this master circular as the single source for nomination procedures.
Action required: Ensure branch staff can correctly process nominations, including for NRIs under 6.5% and 8% Savings Bonds 2003.
Action required: Verify that acknowledgment of nomination is issued to all bond holders who submit a nomination request.
Action required: Review existing nomination records to ensure compliance with cancellation rules, especially on transfer of certificates.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3688&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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