What changed
The Government of India approved and notified a revised application format for 8% Savings (Taxable) Bonds, 2003, in the Gazette on April 21, 2014, following earlier discussions in 2012-13. The new format is bilingual (Hindi and English) and designed to integrate with banks' Core Banking Solution platforms. Banks are instructed to print cumulative and non-cumulative bond forms in different colors for easy identification.
What it means for you
Banks must update their bond application forms to the new bilingual format and ensure printing on A4 quality paper with a detachable customer information section. This change supports the migration of Relief/Savings Bonds operations to CBS platforms, improving efficiency and customer experience. Strict adherence to timelines is required, with RBI warning of serious action for deviations.
What you must do
- Print the revised bilingual application format for 8% Savings (Taxable) Bonds, 2003 on A4 size good quality paper.
- Use different colors for cumulative and non-cumulative bond application forms for easy identification.
- Ensure the customer information section is perforated for easy detachment, leaving the application portion with the bank.
- Acknowledge receipt and confirm implementation of these instructions to RBI.
Who it affects
State Bank of India and associates, All nationalised banks (excluding Punjab and Sind Bank and Andhra Bank), Axis Bank Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Stock Holding Corporation of India Ltd. (SHCIL)
What is the effective date for the revised application format?
The revised format was notified in the Gazette of India on April 21, 2014, and banks are expected to implement it immediately as per the June 12, 2014 circular.
Why are different colors required for cumulative and non-cumulative bond forms?
Different colors help bank staff and customers easily distinguish between the two types of bonds, reducing errors in processing.
What happens if banks do not follow the new format or timeline?
RBI has stated that any deviation from the instructions or timeline will be viewed seriously, implying potential regulatory action.