What changed
RBI reviewed and revised the operational guidelines for FRSB 2020 (T), originally issued on June 30, 2020. The new guidelines take effect from April 2, 2026, and replace the previous ones entirely. Key updates include revised procedures for application receipt, reporting, and compliance.
What it means for you
Banks acting as Receiving Offices must adopt the updated operational framework immediately. This ensures uniformity in bond handling, from investor applications to maturity repayments. Non-compliance could attract penalties, so lenders need to align internal processes with the new guidelines.
What you must do
- Identify and share nodal officer and senior functionary contact details with RBI via email, and update on any changes.
- Ensure all branches follow the revised procedures for receiving applications, interest payments, and premature encashment.
- Update internal audit and compliance checklists to reflect the new operational guidelines.
- Train staff on the revised guidelines, especially for handling unpaid/unclaimed amounts and grievance redressal.
Who it affects
Receiving Offices (select commercial banks and authorized entities), Link Cells and nodal officers of ROs, Investors in Floating Rate Savings Bonds, 2020 (Taxable)
When do the revised operational guidelines take effect?
The revised guidelines are effective from April 2, 2026, the date of the circular.
Do the new guidelines replace the earlier ones?
Yes, they supersede the operational guidelines issued on June 30, 2020.
What is the key responsibility for Receiving Offices under the new guidelines?
ROs must identify and share nodal officer details with RBI, follow updated procedures for bond issuance and servicing, and ensure compliance with audit and reporting requirements.