Master Circular: Nomination Facility in Relief/Savings Bonds
Current · Source: Reserve Bank of India · RBI/2008-2009/27 · issued 01 Jul 2008 · ~2 min read
Quick answerRBI consolidated all instructions on nomination for Relief/Savings Bonds into a master circular, effective July 1, 2008. Key rules: sole holders can nominate one or more persons, NRIs are eligible for specific bonds, and nominations can be varied or cancelled. Exceptions apply for joint holders and fiduciary holdings.
The rule, in the simplest words
Only the sole holder (single owner) of a bond can name one or more people (nominees) who will get the bond and its money when the holder dies.
The nomination must be made before the bond's maturity date (when it's due to be paid back).
If you name more than one nominee and one dies, the surviving nominees get the bond.
You can change or cancel a nomination anytime by writing to the Reserve Bank of India or the bank branch handling the bond.
For certain bonds (6.5% Savings Bonds, 2003 and 8% Savings Bonds, 2003), the sole holder can name a Non-Resident Indian (NRI) as nominee for the interest or final payment.
How it plays out — a real example
An agency-banking (government business) officer in Indore is helping a customer who holds a 6.5% Savings Bond. The customer, a sole holder, wants to name his son, who is an NRI living in Dubai, as the nominee. The officer explains that this is allowed for this specific bond, and guides the customer to fill out the nomination form before the bond matures, ensuring the son will receive the interest and final payment according to normal NRI rules.
What changed
RBI issued a master circular consolidating all previous instructions on nomination facility for Relief/Savings Bonds, updated as of June 30, 2008. The circular brings together rules on nomination, variation, cancellation, and exceptions in one document for easier reference by Public Debt Offices and agency banks.
What it means for you
Banks and lenders acting as agency banks now have a single reference for nomination procedures, reducing ambiguity. The circular clarifies that sole holders can nominate NRIs for specific bonds, and nominations can be made separately for each deposit in a Bond Ledger Account. This streamlines compliance and customer service for bond-related nominations.
What you must do
Update internal procedures to align with the consolidated nomination rules for Relief/Savings Bonds.
Train staff on the updated nomination facility, including NRI eligibility and separate nomination per deposit.
Ensure acknowledgment of nomination is issued to bond holders as per the circular.
Review and update customer communication materials to reflect the consolidated guidelines.
Who it affects
State Bank of India and associate banks, Nationalized banks, ICICI Bank, IDBI Bank, HDFC Bank, Axis Bank, Stock Holding Corporation of India Ltd, Public Debt Offices, Agency banks handling Relief/Savings Bonds
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2008
Decoded by BankPulse2026-06-19 13:28 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Can a sole holder nominate an NRI for Relief/Savings Bonds?
Yes, for 6.5% Savings Bonds 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds 2003, a sole holder can nominate an NRI for interest/redemption value, subject to normal foreign remittance regulations.
What happens if a nominee dies when multiple nominees are named?
If two or more persons are nominated, the title to the bonds vests in the surviving nominee(s) upon the death of a nominee.
Is nomination allowed for joint holders of a bond?
No, nomination is not permissible when the certificate is held jointly by two persons and both are alive.
📜 Read the original circular — full text as issued by RBI
RBI/2008-2009/27
DGBA.CDD No. H – 1 / 13.01.299 / 2008-09
July 1, 2008
Aashadha 10, 1930 (S)
The Chairman / Managing Director
State Bank of India and Associate banks
17 Nationalized banks
ICICI Bank Ltd / IDBI Bank / HDFC Bank Ltd / Axis 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 bond holders from time to time. In order to enable Public Debt Offices/Agency Banks to have all the currently operative instructions on the above subject at one place, Master Circular on nomination facility in Relief / Savings Bonds has been prepared which is updated upto 30th June every year. Accordingly, the amended circular giving the updation upto 30.06.2008 is enclosed . You may also access the circular on our website www.rbi.org.in
Please acknowledge receipt.
Yours faithfully,
(Indira Nanu)
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 BLA 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 BLA 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 holders are allowed to make separate nomination for each deposit comprised in the BLA 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/2008-2009/27 · issued 01 Jul 2008. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (State Bank of India and associate banks, Nationalized banks, ICICI Bank, IDBI Bank, HDFC Bank, Axis Bank, Stock Holding Corporation of India Ltd, Public Debt Offices, Agency banks handling Relief/Savings Bonds), your first concrete step on “Master Circular: Nomination Facility in Relief/Savings Bonds” is: “Update internal procedures to align with the consolidated nomination rules for Relief/Savings Bonds.” (RBI issued this 01 Jul 2008).
Circular: RBI/2008-2009/27 -- Master Circular: Nomination Facility in Relief/Savings Bonds
Issued: 01 Jul 2008
Action required: Update internal procedures to align with the consolidated nomination rules for Relief/Savings Bonds.
Action required: Train staff on the updated nomination facility, including NRI eligibility and separate nomination per deposit.
Action required: Ensure acknowledgment of nomination is issued to bond holders as per the circular.
Action required: Review and update customer communication materials to reflect the consolidated guidelines.
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.
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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=4306&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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