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Master Circular on Nomination for Relief/Savings Bonds

Current · Source: Reserve Bank of India · RBI/2013-14/82 · issued 01 Jul 2013 · ~2 min read
Quick answerRBI consolidated all instructions on nomination for Relief/Savings Bonds into one master circular. Sole or joint holders can nominate one or more persons, including NRIs for 8% Savings (Taxable) Bonds, 2003. Nomination must be made before maturity and can be varied or cancelled.
The rule, in the simplest words
How it plays out — a real example

An agency-banking (government business) officer in Indore is helping a customer fill out a nomination form for a 8% Savings (Taxable) Bond, 2003. The customer wants to name her son, who lives in the US as an NRI, as the nominee. The officer explains that NRIs are allowed as nominees for this bond, and reminds her that the nomination must be done before the bond matures. He then issues an 'Acknowledgement of Nomination' to confirm the request.

What changed

RBI issued a master circular consolidating all current operative instructions on nomination for Relief/Savings Bonds as of June 30, 2013, replacing the previous master circular dated July 2, 2012. The circular provides a single reference point for nomination rules, including eligibility, procedure, and exceptions.

What it means for you

Banks and authorized agencies now have a unified set of rules for handling nominations on Relief/Savings Bonds, reducing confusion from multiple circulars. This simplifies compliance for lenders and ensures consistent customer service. The inclusion of NRI nomination for 8% Savings (Taxable) Bonds, 2003, clarifies cross-border remittance rules.

What you must do

Who it affects

State Bank of India and associates, All nationalized banks (excluding Punjab and Sind Bank & Andhra Bank), Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Stock Holding Corporation of India Ltd. (SHCIL), Investors in Relief/Savings Bonds

❓ Common questions

Can I nominate multiple persons for my Relief/Savings Bond?

Yes, a sole holder or all joint holders can nominate one or more persons. If multiple nominees are named, surviving nominees are entitled to the bond and payments upon the death of any nominee.

Is nomination allowed for 8% Savings (Taxable) Bonds, 2003, and can an NRI be a nominee?

Yes, nomination is allowed for these bonds. A sole or joint holder can nominate an NRI, but remittance of interest or maturity value will follow NRI regulations.

What happens if I want to change my nomination?

You can vary or cancel the nomination by making a fresh nomination in the prescribed manner and informing the designated bank branch in writing. The change is effective upon registration by the bank.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/82 DGBA.CDD. No. 7917/13.01.299/2013-14 July 01, 2013 The Chairman/Managing Director Head Office (Government Accounts Department) State Bank of India and Associates, All Nationalized banks (Excluding Punjab and Sind Bank & Andhra Bank), Axis Bank Ltd./ICICI Bank Ltd./HDFC Bank Ltd./ Stock Holding Corporation of India Ltd. (SHCIL) Dear Sir/Madam, Master Circular on Nomination facility for Relief/Savings Bonds Please refer to our Master Circular DGBA.CDD No. H-8574/13.01.299/2012-13 dated July 2, 2012 on the above subject. 2. In order to facilitate availability of all the current operative instructions on the above subject at one place, instructions issued up to June 30, 2013 by us are enclosed. This circular has also been placed on RBI website http://www.rbi.org.in . Yours faithfully, (Sangeeta Lalwani) General Manager Encl. : One Master Circular on Nomination facility for Relief/Savings Bonds 1. A sole holder or all the joint holders (investors) of a Relief/Savings bond other than in the form of promissory note or bearer bond may nominate one or more persons who in the event of death of the sole holder/all the joint holders, as the case may be, would be entitled to the Relief/Savings bond and to the payment thereon, provided that the person or each of the persons nominated is himself/herself competent to hold a similar bond. 2. The nomination should be made before maturity of the bond. 3. When nomination has been made in favour of two or more nominees, in the event of the death of either or any of them, the surviving nominee or nominees, as the case may be, shall be entitled to the Relief/Savings bond and payment thereon. 4. A nomination made by the holder(s) of a Relief/Savings bond may be varied or cancelled by making a fresh nomination in the prescribed manner and intimating the same in writing to the designated branch of the authorised public/private sector bank. 5. If the nominee is a minor, the holder(s) of the Relief/Savings bond may appoint any person, not being a minor, to receive the proceeds of a Relief/Savings bond on behalf of the nominee in the event of his/her/their death during the minority of the nominee. 6. The investor(s) can make separate nomination for each investment in a Bond Ledger Account (BLA) (subject to 2 above).   7. Agency banks to issue ‘Acknowledgement of Nomination.' 8. In case of 8 % Savings (Taxable) Bonds, 2003 (currently the only scheme open for subscription) the sole holder or all the joint holders can also nominate a Non-resident Indian (NRI) as his/her/their nominee(s) and remittance of interest payment and/or maturity value, as the case may be, will be governed by the regulations as applicable to NRIs. Exceptions – No nomination is permissible in the following cases:- When the BLA is held by an adult on behalf of a minor; When the holder has no beneficial interest in the BLA but holds it in an official or fiduciary capacity. Cancellation of Nomination - A nomination previously made will stand automatically cancelled - If the holder(s) applies to the agency banks for substitution or cancellation of the nomination and the substitution or cancellation is duly registered by the office; If the holder(s) transfers the Certificate to another party. The various circulars/instructions issued by RBI based on which the above Master Circular is prepared are listed below: Ref. 'Memorandum of Procedure' for Relief bonds. Ref. CO.DT.13.01.201/4087/2000-01 dated February 16, 2001 Ref. CO.DT.13.01.201/4854/2000-01 dated March 19, 2001 Ref. CO.DT.13.01.298/H-3410/2003-04 dated December 20, 2003 Ref. CO.DT.13.01.299/H-3426/2003-04 dated December 20, 2003 Ref. DGBA.CDD. No.H-2173/13.01.299/2008-09 dated September 2, 2008 (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/2013-14/82 · issued 01 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (State Bank of India and associates, All nationalized banks (excluding Punjab and Sind Bank & Andhra Bank), Axis Bank Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Stock Holding Corporation of India Ltd. (SHCIL), Investors in Relief/Savings Bonds), your first concrete step on “Master Circular on Nomination for Relief/Savings Bonds” is: “Update internal procedures and staff training to reflect the consolidated nomination rules from this master circular.” (RBI issued this 01 Jul 2013).

  1. Circular: RBI/2013-14/82 -- Master Circular on Nomination for Relief/Savings Bonds
  2. Issued: 01 Jul 2013
  3. Action required: Update internal procedures and staff training to reflect the consolidated nomination rules from this master circular.
  4. Action required: Ensure agency banks issue an 'Acknowledgement of Nomination' for all valid nominations received.
  5. Action required: Verify that nominations are made before bond maturity and that minor nominees have an appointed adult to receive proceeds.
  6. Action required: Process any variation or cancellation of nomination only upon written intimation and proper registration.
  7. Action required: For 8% Savings (Taxable) Bonds, 2003, apply NRI remittance regulations when an NRI is nominated.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8139&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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