DGBA/CDD/13-01-299/ H-6103 /2003-04, Dt. 21/04/2004
Master Circular on Nomination facilities for Relief / Savings Bond Holders
The Department of Government and Bank Accounts, Central Office, RBI has been issuing instructions relating to nomination facility for Relief / Savings bonds holders from time to time. In order to enable the Offices/Agency Banks to have all the currently operative instructions on the above subject at one place, a Master Circular on nomination facility in Relief / Savings Bonds has been prepared, which is enclosed.
Please acknowledge receipt.
Yours faithfully,
(B. B. Sangma)
General Manager
Master Circular
Relief Bond / Saving Bond Schemes Nomination facilityi. A sole holder or a sole surviving holder of a Bond in the form of Stock Certificate/ Bond Ledger Account (BLA) may nominate one or more persons who shall be entitled to the Bond and payment thereon in the event of his/her death.
ii. When two or more persons are nominated, in the event of the death of a nominee, the title to the bonds vests in the surviving nominee/s.
iii. A nomination made by a holder of a Bond Ledger Account may be varied by a fresh nomination or may be cancelled by giving notice in writing to the Reserve Bank of India/designated branch of authorised public/private sector bank.
iv. If the nominee is a minor, the holder of a Bond Ledger Account may appoint any person to receive the Bond/amount due in the event of his/her death during the minority of the nominee.
v. The BLA Account holders are allowed to make separate nomination for each deposit comprised in the Bond Ledger Account even if the deposit in BLA relates to earlier period.
vi. Offices/Agency Banks may issue ‘Acknowledgement of Nomination’.
vii. Sole holder can nominate a Non-resident Indian as his/her nominee in respect of interest/redemption value of the investment in the bonds. The normal regulations in regard to foreign remittances as applicable to Non-Resident Indians from time to time will continue to govern these cases
Exceptions-No nomination is permissible in the following cases :-a. When the Certificate/BLA is held by an adult on behalf of a minor;
b. When the holder has no beneficial interest in the Certificate but holds it in an official or fiduciary capacity and
c. When the Certifiate is held by two persons jointly and both holders are alive.
Cancellation of Nomination: A nomination in respect of Saving Bond will stand cancelled in the following circumstances :
a. If the holder applies to the Office for substitution or cancellation and the substitution or cancellation is duly registered by the office.
b. If the holder transfers the Certificate
In case, detailed clarifications are required on specific issues, the circulars/indicated above may please be referred to.
RBI/2004/ 169
DGBA/CDD/13-01-299/ H-6103 /2003-04
April 21, 2004
The Regional Director
Reserve Bank of India
Public Debt Office
Ahmedabad /Bangalore /Bhubaneswar /Chennai /Guwahati /Hyderabad /Jaipur /Kanpur /Kolkatta /Mumbai, Byculla, /Mumbai, Fort /Nagpur /New Delhi /Patna /Thiruvananthapuram
The General Manager
State Bank of India and Associate banks and 17 Nationalised banks
The Managing Director
ICICI/IDBI/HDFC/UTI Bank Ltd.
Stock Holding Corporation of India Ltd.
Dear Sir,
Master Circular on Appointment & delisting of Brokers for Relief / Savings BondsThe Department of Government and Bank Accounts, Central Office, RBI has been issuing instructions relating to appointment/delisting of brokers for Relief / Savings Bonds from time to time. In order to enable the Offices/Agency Banks to have all the currently operative instructions on the above subject at one place, a Master Circular on appointment/delisting of brokers for Relief / Savings Bonds has been prepared, which is enclosed.
Please acknowledge receipt.
Yours faithfully,
(B. B. Sangma)
General Manager
Master Circular
Savings BondsAppointment / Delisting of of Brokers(Ref.CO.DT.13.01.201/692/2000-01 dt.9-8-2000)
Offices/Agency Banks may follow a simple procedure for enrolment/registration of brokers. The broker seeking enrolment /registration may submit his/her request for registration on his/her business letter head together with business data. The Offices / Agency banks may allot broker code number, which should be quoted by the broker on all applications tendered at the Receiving offices.
The brokers should be advised that numbers allotted by RBI Offices are valid only for applications tendered at Reserve Bank of India only.
Appointment of sub-agents by Agency Banks(Ref. CO.DT.13.01.251.5341/2001-02 dt.4-1-2002)
It has come to our notice that some banks designated/authorized by RBI have engaged the services of other banks as brokers/agents for receiving applications and the latter are using the name of Reserve Bank of India in their publicity material and billboards stating that RBI has appointed them as brokers for Relief/Savings Bonds business. We advise that in cases where Authorised Banks you engage the services of other banks/institutions not authorized to handle Relief/Savings Bonds business as designated banks, the agency banks who have appointed them are solely responsible for the activities of such a bank/institution engaged by agency bank as an agent/broker. The name of RBI should not be used by such banks.
Delisting of brokers :(Ref.CO.DT.13.01.201/4890/1999-00 dt. 6-3-2001)
Offices/Agency banks are advised that names of the dormant brokers, say for a period of 2 years, may be delisted after giving due notice if no fresh business is forthcoming from such brokers.
In case, detailed clarifications are required on specific issues, the circulars/indicated above may please be referred to.
Master Circular
RATES OF BROKERAGE PAYABLE TO REGISTERED BROKERS FOR RELIEF/SAVINGS BONDSRBI/2004/ 171
DGBA/CDD/13-01-299/ H-6104 /2003-04
April 21, 2004
The Regional Director
Reserve Bank of India
Public Debt Office
Ahmedabad /Bangalore /Bhubaneswar /Chennai /Guwahati /Hyderabad /Jaipur /Kanpur /Kolkatta /Mumbai, Byculla, /Mumbai, Fort /Nagpur /New Delhi /Patna /Thiruvananthapuram
The General Manager
State Bank of India and Associate banks and 17 Nationalised banks
The Managing Director
ICICI/IDBI/HDFC/UTI Bank Ltd.
Stock Holding Corporation of India Ltd.
Dear Sir,
Master Circular on Rates of Brokerage etc. for Relief / Savings BondsThe Department of Government and Bank Accounts, Central Office, RBI has been issuing instructions relating to brokerage rates for Relief / Savings bonds from time to time. In order to enable the Offices/Agency banks to have all the currently operative instructions on the above subject at one place, a Master Circular on brokerage rates etc for Relief / Savings Bonds has been prepared, which is enclosed.
Please acknowledge receipt
Yours faithfully,
(B. B. Sangma)
General Manager
Master Circular
Payment & Rates of Brokerage for Savings BondsRates of brokerage(Ref.CO.DT.13.01.201/432/2000-01 dt. 25-7-2000)
Brokerage at the rate of 0.50 (paise fifty only) per Rs.100/- will be paid to brokers registered/enrolled with RBI Offices, on applications tendered for investment in the bonds in the form of BLA at RBI Offices on behalf of their clients and bearing their stamp. NO BROKERAGE WILL BE PAID IN RESPECT OF STOCK CERTIFICATES
Brokerage at the rate of 1.00 (Rupee One only) per Rs.100/- will be paid to brokers registered/enrolled with Agency banks on applications tendered for investment in the bonds in the form of BLA at designated branches on behalf of their clients and bearing their stamp.
NO BROKERAGE IS PAYABLE IN CASE THE BROKER IS ONE OF THE INVESTOR/APPLICANT (Ref.CO.DT./13.01.298/H-2411/03-04 dated 29-10-2003
NO TDS on payment of brokerage:- Offices/agency banks may please note that no tax is required to be deducted at source while making payment of brokerage in respect of the Savings Bonds business canvassed by brokers in terms of Section 194(H) of the Income Tax Act, 1961 (Ref.CO.DT.201/5900/2000-01 dt. 28-5-2001 & CO.DT.13.01.298/H-3660/03-04 dt.3-1-04 )
Offices/Agency Banks are advised to settle the brokerage claims expeditiously in any case not later than 30 days from the date of subscription. (Ref.CO.DT.13.01.201/6260/2000-01 dt.13-6-2001)
Agency Banks are advised to first settle the brokerage claims and thereafter the reimbursement be sought from the Reserve Bank of India. (Ref.CO.DT./13.01.201/4668/2000-01 dt.8-3-2001
As a measure towards improvement in customer service, offices/agency banks may arrange to pay the brokerage to the agents, on a monthly basis by credit to their accounts through ECS after obtaining requisite mandate from them.
(Ref.CO.DT.13.01.298/H-4677/2002-03 dt. 23-5-2003)
Reimbursement of brokerage claims in respect of Savings Bonds have been centralized at CAS Nagpur with effect from 1-7-2002 and it has been decided that 90% of the brokerage due to agencies on the basis of funds remitted/reported to CAS as at the close of business of the month will be paid on the 3rd working day of the succeeding month.
The balance of 10% is to be settled in due course on submission of Appendix IV (Ref.CO.DT.13.01.272/11032/2001-02 dt.25-6-2002 & CO.DT.13.01.272/H-2906/2002-03 dt. 26-2-2003)
In case, detailed clarifications are required on specific issues, the circulars/indicated above may please be referred to.
Presented by eximkey.com