What changed
RBI issued and gazetted revised eligibility criteria and operational guidelines for opening and maintaining SGL and CSGL accounts on September 22, 2021. These new guidelines replace the earlier ones dated October 29, 2018.
What it means for you
Banks and other SGL/CSGL holders must align their account operations with the updated framework. The changes likely tighten eligibility norms or operational procedures, impacting how government securities are held and transacted.
What you must do
- Review the revised SGL and CSGL guidelines dated September 22, 2021, for updated eligibility and operational requirements.
- Update internal policies and procedures to comply with the new guidelines, superseding the 2018 version.
- Train relevant staff on any changes in account opening, maintenance, or reporting processes.
- Ensure all existing SGL/CSGL accounts meet the revised criteria within the stipulated timeline.
Who it affects
All SGL account holders, All CSGL account holders, Banks and financial institutions dealing in government securities
What is the effective date of the revised SGL/CSGL guidelines?
The revised guidelines were gazetted and issued on September 22, 2021, and supersede the earlier guidelines from October 29, 2018.
Which legal authority empowers RBI to issue these guidelines?
RBI issued these guidelines in exercise of powers conferred by Section 4 of the Government Securities Act, 2006.
Do I need to take any action if I already hold an SGL or CSGL account?
Yes, you should review the revised guidelines to ensure your existing accounts comply with the updated eligibility and operational criteria.