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.
What you must do
- 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
Can joint holders of these Savings Bonds now nominate someone?
Yes, joint holders can nominate one or more persons under Section 9(1)(a) of the Government Securities Act, 2006.
Which bonds are covered by this change?
7% Savings Bonds 2002, 6.5% Savings Bonds 2003 (Non-taxable), and 8% Savings (Taxable) Bonds 2003.
Do we need to update our master circular?
Yes, paragraphs i, viii, and exception (c) of the July 1, 2008 master circular should be read mutatis mutandis as per this notification.