What changed
RBI issued a Master Circular consolidating all previous instructions on broker appointment and delisting for Relief/Savings Bonds. The circular reiterates the simple enrolment procedure, the responsibility of agency banks for sub-agents, and the delisting of dormant brokers after two years.
What it means for you
Banks acting as agents for Relief/Savings Bonds now have a single reference document for broker management. They must ensure sub-agents do not use RBI's name in publicity, and they are fully liable for any sub-agent's actions. Dormant brokers (no business for two years) should be delisted after proper notice.
What you must do
- Follow the simple enrolment procedure for brokers: accept request on business letterhead with business data and allot a unique broker code.
- Ensure brokers quote their RBI-issued code on all applications; codes are valid only for RBI tenders.
- If you appoint sub-agents, take full responsibility for their activities and prohibit them from using RBI's name in any publicity.
- Delist brokers who have been dormant for two years after giving due notice.
Who it affects
State Bank of India and associate banks, 17 nationalized banks, ICICI Bank, IDBI, HDFC Bank, UTI Bank, Stock Holding Corporation of India Ltd, All agency banks handling Relief/Savings Bonds
What is the procedure for enrolling a broker for Relief/Savings Bonds?
The broker must submit a request on their business letterhead along with business data. The agency bank or RBI office then allots a unique broker code, which the broker must quote on all applications.
Can an agency bank appoint another bank as a sub-agent for Relief/Savings Bonds?
Yes, but the appointing bank is solely responsible for the sub-agent's activities. The sub-agent must not use RBI's name in any publicity or billboards.
When should a broker be delisted?
Brokers who have been dormant (no fresh business) for two years should be delisted after giving them due notice.