Who: Operational Guidelines of Sovereign Gold Bonds 2015
What: Notified by RBI
When: 4 November 2015
The Reserve Bank of India (RBI) on 4 November 2015 notified the Operational Guidelines of the Sovereign Gold Bonds 2015-16. These bonds will be issued by the RBI from 5 November – 20 November 2015.
Main Operational Guidelines
• Joint holding and nomination: Multiple joint holders and nominees (of first holder) are permitted. Necessary details may be obtained from the applicants as per practice.
• Interest on application money: Applicants will be paid interest at prevailing savings bank rate from the date of realization of payment to the settlement date that is the period for which they are out of funds.
• Lien marking: As the bonds are government securities, lien marking will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under.
• Agency arrangement: Scheduled commercial banks may engage NBFCs, NSC agents and others to collect application forms on their behalf. Banks may enter into arrangements or tie-ups with such entities.
• Processing through RBI’s e-kuber system: Sovereign Gold Bonds will be available for subscription at the branches of scheduled commercial banks and designated post offices through RBI’s e-kuber system.
• Servicing and follow up: Receiving offices like branches of the scheduled commercial banks and designated post offices will own the customer and provide necessary services with regards to this bond. Receiving offices will be required to preserve applications till the bonds are matured and are repaid.
Earlier on 30 October 2015, RBI decided to issue Sovereign Gold Bonds, 2015 with effect from 5 November 2015 to 20 November 2015.