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
2019-20 - Series I/II/III/IV - Operational Guidelines
This has reference to the GoI notification F.No.4(7)-W&M/2019 dated May 30,
2019 and RBI circular
IDMD.CDD.No.3392/14.04.050/2018-19 dated May 30, 2019on 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 on the weeks of
subscription. 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 service.
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/her name on account of he/she 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)
Every application must be
accompanied by the ‘PAN details’ issued by the Income Tax Department to the
investor(s). 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
Cancellation of application is
permitted till the closure of the issue, i.e. until Friday of the
particular week of subscription. Part cancellation of submitted request for
purchase of gold bonds is not permitted.
5. 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. The lien
shall be marked by the Receiving Offices/Public Debt Offices of RBI in case
of financing by agencies other than the Receiving Offices.
6. 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
7. 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.
8. Printing Certificates of
Holding Certificate needs to be
printed in colour on A4 size 100 GSM paper.
9. 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
11. 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.