The Chairman & Managing
All Scheduled Commercial Banks
Designated Post Offices
Stock Holding Corporation of India ltd.(SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.
Sovereign Gold Bond Scheme
2018-19 Series-I, Operational Guidelines
This has reference to the GoI notification F.No.4(8)-W&M/2018 and RBI circular IDMD.CDD.No.2651/14.04.050/2017-18 dated
April 13 2018 on the Sovereign Gold Bonds,. FAQs in this regard have been placed on our
website (www.rbi.org.in). Operational
guidelines with regard to this scheme are given below:
Application forms from investors
will be received at branches during normal banking hours from April 16,
2018 to April 20, 2018. Receiving Offices need to ensure that the
application is complete in all respects as incomplete applications are
liable to be rejected. Relevant additional details may be obtained from the
applicants, where necessary. The Receiving Offices may make arrangements to
enable the investors to apply online, in the interest of better customer
2. 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. An individual Non - resident Indian
may get the security transferred in his name on account of his being a
nominee of a deceased investor provided that:
Non-Resident investor shall need to hold the security till early redemption
or till maturity; and
interest and maturity proceeds of the investment shall not be repatriable.
3. Know-Your-Customer (KYC)
Know-Your-Customer (KYC) norms
shall be the same as that for purchase of physical form of gold.
Identification documents such as passport, Permanent Account Number (PAN)
Card, Voter's Identity Card, Aadhaar card shall be required. In case of
minors only, the bank account number may also be considered as valid for
KYC verification. KYC will be done by the banks/SHCIL offices/Post
Offices/designated stock exchanges/agents. It may be ascertained from the
investor, if he/she has made a previous investment in SGBs or IINSC-C and
hence in possession of an Investor ID. If so, the investments may be made
under the unique Investor ID only.
4. 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, ie. the period for which they are out of funds. In
case the applicant’s bank account is not with the receiving bank, the interest
has to be credited by electronic fund transfer to the account details
provided by the applicant
Cancellation of application is
permitted till the closure of the issue, i.e. April 20, 2018. Part
cancellation of submitted request for purchase of gold bonds is not
permitted. No interest on application money needs to be paid if the
application is cancelled.
6. Lien marking
As the bonds are government
securities, lien marking, etc. will be as per the extant legal provisions
of Government Securities Act, 2006 and rules framed there under.
7. Agency arrangement
Receiving Offices 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. Commission
for distribution shall be paid at the rate of Rupee one per hundred of the
total subscription received by the receiving offices on the applications
received and receiving offices shall share at least 50% of the commission
so received with the agents or sub-agents for the business procured through
8. Processing through RBI’s
Sovereign Gold Bonds will be
available for subscription at the Receiving Offices through RBI’s e- Kuber
system. The e-Kuber system can be accessed either through INFINET or Internet.
The Receiving Offices need to enter the data or carry out bulk upload for
the subscriptions received by them. They may ensure accuracy of entry of
data to prevent occurrence of any inadvertent errors. An immediate
confirmation will be provided to them for receipt of application. In
addition, a confirmation scroll will be provided for file uploads to enable
the Receiving Offices to update their database. On the date of allotment,
Certificates of Holding will be generated for all the subscriptions in the
name of the sole/principal holder. The Receiving Offices can download the
same and take printouts. The Certificates of Holding will also be sent
through e-mail to the investors who have provided their email address. The
securities will be credited in their de-mat accounts by the depositories,
in due course, subject to matching of particulars furnished in the
application with the depositories’ records.
9. Printing Certificates of
Holding Certificate needs to be
printed in colour on A4 size 100 GSM paper.
10. Servicing and follow up
Receiving Offices will “own” the
customer and provide necessary services with regards to this bond e.g.
update contact details, receive requests for premature encashment, etc.
Receiving Offices will be required to preserve applications till the bonds
are matured and are repaid.
The Bonds shall be eligible for
trading on a date notified by the Reserve Bank of India. (It may be noted
that only bonds held in demat form with depositories can be traded in stock
12. Contact details
Any queries/clarifications may
be e-mailed to the following:
(a) Sovereign Gold Bond related:
Please click here to send email.
(b) IT related: Please click here to send email.
Deputy General Manager