Nomination Facility for Joint Holders of Savings Bonds
No longer current — withdrawn, no replacement on file yet
RBI's own words: “The various circulars issued by this Department based on which the above Master Circular is prepared are listed below.” — RBI/2009-10/54
Source: Reserve Bank of India · RBI/2008-09/152 · issued 02 Sep 2008 · ~1 min read
Quick answerRBI now allows joint holders of 7% Savings Bonds 2002, 6.5% Savings Bonds 2003 (Non-taxable), and 8% Savings (Taxable) Bonds 2003 to nominate one or more persons, aligning with the Government Securities Act, 2006.
The rule, in the simplest words
Joint holders of 7% Savings Bonds 2002, 6.5% Savings Bonds 2003, and 8% Savings Bonds 2003 can now nominate one or more persons.
This change allows joint holders to make nominations under Section 9(1)(a) of the Government Securities Act, 2006.
Banks must update their operational procedures to accept nomination requests from joint holders of these bonds.
How it plays out — a real example
A treasury officer in Indore, working at State Bank of India, helps a joint holder of 7% Savings Bonds 2002 to nominate their spouse as the beneficiary. The officer ensures that the bank's internal guidelines and master circulars are updated to reflect the new rules, and communicates the change to the customer. This simplifies estate planning for the customer and reduces legal ambiguity.
What changed
Previously, only sole or sole surviving holders could nominate for these Savings Bonds. Now, joint holders are also entitled to make nominations under Section 9(1)(a) of the Government Securities Act, 2006 and related regulations.
What it means for you
Banks and lenders must update their operational procedures to accept nomination requests from joint holders of these bonds. This change reduces legal ambiguity and aligns bond practices with the broader Government Securities Act, simplifying estate planning for customers.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update internal guidelines and master circulars to reflect joint holder nomination eligibility.
Train designated branch staff on processing nominations for joint holders under the new rules.
Communicate the change to customers holding these bonds, especially joint holders.
Ensure acknowledgment of receipt of this circular from RBI.
Who it affects
State Bank of India and associate banks, Nationalised banks, Private sector banks (Axis, HDFC, ICICI, IDBI), Stock Holding Corporation of India Ltd, Designated branches operating the Savings Bond schemes
RBI’s words: “The various circulars issued by this Department based on which the above Master Circular is prepared are listed below.”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/152
Ref. DGBA.CDD. No. H- 2173 / 13.01.299 / 2008-09
September 2, 2008
Bhadra 11, 1930 (S)
The General Manager
State Bank of India & Associate Banks
17 Nationalised Banks
Axis Bank Ltd / HDFC Bank Ltd / ICICI Bank Ltd / IDBI Bank Ltd &
Stock Holding Corporation of India Ltd
Dear Sir,
7% Savings Bonds 2002, 6.5% Savings Bonds 2003 (Non-taxable) & 8 % Savings (Taxable) Bonds 2003 - nomination facility to joint holders
As you are aware of, in terms of relevant Government of India (GoI) Notifications, in case of Savings Bonds issued under the captioned schemes, a sole holder or a sole surviving holder of a bond, being an individual, may nominate one or more persons who shall be entitled to the bond and payment thereon in the event of his or her death.
2. However, Section 9 (1) (a) of the Government Securities Act, 2006 (the G S Act) provides for nomination by joint holders also. Since Government of India Notifications for the above bonds precede the G S Act, the relevant issues were examined by us recently. In this connection, we advise that since the G S Act provides for nomination for Government securities by joint holders of the Savings Bonds and the GoI Notifications relating to Savings Bonds as such do not prohibit joint holders from making nomination, such joint holders are entitled to nominate one or more persons as nominees in terms of Section 9 (1) (a) of the G S Act and Regulations 7, 8 and 9 of Government Securities Regulations, 2007. In the light of the above, we advise that para ‘i’ & ‘viii’ and exception (c) of the Master Circular issued by us vide No. RBI / 2008-09 / 27 (Ref. DGBA.CDD No. H-1 / 13.01.299 / 2008-09 ) dated July 1, 2008 may be read mutatis mutandis.
3. You may issue suitable instructions to your designated branches operating the scheme.
4. Please acknowledge receipt.
Yours faithfully,
(Dr. Balu K.)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/152 · issued 02 Sep 2008. The plain-English explanation above is BankPulse’s own independent summary.
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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=4442&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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