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
- Update internal procedures and staff training to reflect the consolidated nomination rules from this master circular.
- Ensure agency banks issue an 'Acknowledgement of Nomination' for all valid nominations received.
- Verify that nominations are made before bond maturity and that minor nominees have an appointed adult to receive proceeds.
- Process any variation or cancellation of nomination only upon written intimation and proper registration.
- For 8% Savings (Taxable) Bonds, 2003, apply NRI remittance regulations when an NRI is nominated.
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
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.