RBI/2017-18/18
IDMD.CDD.No.29/14.04.050/2017-18
July
06, 2017
The Chairman & Managing
Director
All Scheduled Commercial Banks
(Excluding RRBs)
Designated Post Offices
Stock Holding Corporation of India ltd.(SHCIL)
National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd.
Dear Sir/Madam,
Sovereign Gold Bonds, 2017-18 –
Series II - Operational Guidelines
This has reference to the GoI notification
F.No.4(20)-B/(W&M)/2017 and RBI circular
IDMD.CDD.No.28/14.04.050/2017-18 dated July 06, 2017 on the
Sovereign Gold Bonds, 2017-18-Series II. FAQs in this regard have been placed on our
website (rbi.org.in).
Operational guidelines with regard to this scheme are given below:
1. Application
Application forms from investors
will be received at branches during normal banking hours from July 10, 2017
to July 14, 2017. 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.
3. Know-Your-Customer (KYC) requirements
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 issuing banks/SHCIL offices/Post
Offices/agents.
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.
5. Cancellation
Cancellation of application is
permitted till the closure of the issue, i.e., July 14, 2017. 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
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.
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 them.
8. 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. 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, i.e.,
July 28, 2017. 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
Holding Certificate needs to be
printed in colour on A4 size 100 GSM paper.
10. Servicing and follow up
Receiving Offices, i.e.,
branches of the Scheduled Commercial Banks, designated post offices, SCHIL
and stock exchanges (NSE Ltd and BSE) 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.
11. Tradability
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
exchanges)
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.
Yours faithfully,
(Shyni Sunil)
Deputy General Manager
|