What changed
Government of India issued a new notification on October 9, 2020, launching six new SGB series for FY 2020-21. RBI circular communicates the subscription and issuance dates for each tranche, reiterates authorized receiving offices, and reminds banks to use the consolidated procedural guidelines from April 2020.
What it means for you
Banks must gear up for six subscription windows starting October 12, 2020, ensuring staff are trained on the consolidated guidelines. This is a routine issuance cycle, but the volume of tranches means sustained operational readiness. Non-compliance with PAN collection or acknowledgment procedures could invite regulatory scrutiny.
What you must do
- Train front-office staff on the consolidated SGB procedural guidelines issued April 13, 2020.
- Ensure PAN details are collected with every application and Form B acknowledgment is issued.
- Update internal systems to handle six distinct series (VII to XII) with correct issuance dates.
- Display subscription schedule prominently at branches and on digital channels.
- Coordinate with SHCIL, stock exchanges, and designated post offices for seamless investor service.
Who it affects
All Scheduled Commercial Banks (excluding RRBs, Small Finance Banks, Payment Banks), Designated Post Offices, Stock Holding Corporation of India Ltd (SHCIL), National Stock Exchange of India Ltd & Bombay Stock Exchange Ltd, SGB investors
What are the subscription dates for SGB Series VII?
Series VII subscription opens October 12-16, 2020, with issuance on October 20, 2020.
Which entities are authorized to accept SGB applications?
Scheduled Commercial Banks (excluding RRBs, Small Finance Banks, Payment Banks), designated Post Offices, SHCIL, and recognized stock exchanges (NSE, BSE).
What operational guidelines must banks follow?
Banks must follow the consolidated procedural/operational guidelines issued via circular IDMD.CDD.2730/14.04.050/2019-20 dated April 13, 2020, available on RBI website.