Executive Summary:
This document outlines operational guidelines for the Sovereign Gold Bond (SGB) Scheme 2019-20 Series II-III-IV, referencing GoI notification F.No.4(7)/WM/2019 and RBI circular IDMD.CDD.No.3392/14.04.050/2018-19, both dated May 30, 2019. It details procedures for application, KYC, cancellation, lien marking, agency arrangements, processing via e-Kuber, certificate printing, servicing, tradability, and contact information. Receiving Offices must ensure complete applications and accurate data entry.
Key Points / Main Content:
Application:
* Receiving Offices will accept application forms during normal banking hours.
* Incomplete applications will be rejected.
* Online applications are encouraged for better customer service.
Joint Holding and Nomination:
* Multiple joint holders and nominees are permitted.
* Non-Resident Indians (NRIs) may have securities transferred to them as nominees, but they must hold the security until early redemption or maturity, and proceeds are non-repatriable.
KYC Requirements:
* PAN details are mandatory for all applications.
* Investors with a previous SGB or IINSCC investment should use their existing Investor ID.
Cancellation:
* Cancellation is allowed until the issue closure on Friday of the subscription week.
* Partial cancellation is not permitted.
Lien Marking:
* Lien marking follows the Government Securities Act, 2006.
* Receiving Offices/Public Debt Offices of RBI will mark liens for financing by agencies other than the Receiving Offices.
Agency Arrangement:
* Receiving Offices may engage NBFCs, NSC agents, etc., to collect applications.
* Commission is ₹1 per ₹100 of total subscription, with Receiving Offices sharing at least 50% with agents/sub-agents.
Processing Through e-Kuber:
* SGBs are available for subscription through RBI's e-Kuber system.
* Receiving Offices must ensure accurate data entry.
* Certificates of Holding will be generated on the allotment date and emailed to investors.
Printing Certificates of Holding:
* Holding Certificates must be printed in color on A4 size 100 GSM paper.
Servicing and Follow Up:
* Receiving Offices will own the customer relationship and provide services like updating contact details and handling premature encashment requests.
* Applications must be preserved until bond maturity and repayment.
Tradability:
* Bonds are eligible for trading on a date to be notified by RBI.
* Only bonds held in demat form can be traded on stock exchanges.
Contact Details:
* Queries can be emailed through the provided links for Sovereign Gold Bond-related and IT-related issues.
Impact Analysis:
Receiving Offices (All Scheduled Commercial Banks Excluding RRBs, Designated Post Offices, SHCIL, NSE, BSE):
Impact: Responsible for receiving applications, ensuring completeness, processing via e-Kuber, printing certificates, customer service, and preserving records.
Action Required: Implement the outlined procedures, train staff, establish online application options, manage agency arrangements, and ensure accurate data entry.
Investors:
Impact: Need to provide complete applications with PAN details, adhere to KYC norms, and understand cancellation and nomination rules.
Action Required: Follow application guidelines, provide necessary documentation, and be aware of the terms related to joint holding, nomination, and tradability.
Agents/Sub-Agents (NBFCs, NSC agents, etc.):
Impact: Can collect application forms on behalf of Receiving Offices and receive a commission.
Action Required: Establish arrangements with Receiving Offices, collect applications accurately, and adhere to commission-sharing terms.
Key Entities Referenced
Sovereign Gold Bond Scheme 201920 Series IIIIIIIV: A government scheme offering sovereign gold bonds, with multiple series, during the financial year 2019-2020.
GoI notification F.No.47WM2019: A notification from the Government of India related to the Sovereign Gold Bonds.
RBI: Reserve Bank of India, the central bank of India.
IDMD.CDD.No.339214.04.050201819: Reference number of RBI circular related to Sovereign Gold Bonds
Scheduled Commercial Banks: Banks that are listed in the Second Schedule of the Reserve Bank of India Act, 1934.
RRBs: Regional Rural Banks
Stock Holding Corporation of India ltd.SHCIL: A financial services provider involved in holding stocks.
National Stock Exchange of India Ltd.: A stock exchange in India.
RBI/2018-19/193
IDMD.CDD.No.3391/14.04.050/2018-19 May 30, 2019
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,
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Sovereign Gold Bond Scheme 2019-20 - Series I/II/III/IV - Operational0 Guidelines
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This has reference to the GoI notification F.No.4(7)-W&M/2019 ,d ated May 30, 2019 and RBI circular
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IDMD.CDD.No.3392/14.04.050/2018-19 dated May 30, 2019 on the Sovereign Gold Bonds. FAQs in this
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regard have been placed on our website (www.rbi.org.in). Operational guidelines with regard to this
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scheme are given below: ri
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1. Application
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Application forms from investors will be received at branches during normal banking hours on the weeks of
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subscription. Receiving Offices need to ensure that the application is complete in all respects as incomplete
applications are liable to be rejected. Relevnant additional details may be obtained from the applicants,
where necessary. The Receiving Offices mway make arrangements to enable the investors to apply online,
in the interest of better customer servicea.
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2. Joint holding and nominationh
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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:
i. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and
ii. the interest and maturity proceeds of the investment shall not be repatriable.
3. Know-Your-Customer (KYC) requirements
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 ID only.
4. Cancellation
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 them.
7. Processing through RBI’s e-Kuber system
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 addition0, a confirmation scroll will be
provided for file uploads to enable the Receiving Offices to update t2heir database. On the date of
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allotment, Certificates of Holding will be generated for all the subscriptions in the name of the
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sole/principal holder. The Receiving Offices can download the sam e and take printouts. The Certificates
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of Holding will also be sent through e-mail to the investors who 3have provided their email address. The
securities will be credited in their de-mat accounts by the depos1itories in due course subject to matching
of particulars furnished in the application with the depositoriels’ records.
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8. Printing Certificates of Holding A
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Holding Certificate needs to be printed in colour on eA4 size 100 GSM paper.
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9. Servicing and follow up
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Receiving Offices will “own” the customer and provide necessary services with regards to this bond e.g.
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update contact details, receive requesrts for premature encashment, etc. Receiving Offices will be required
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to preserve applications till the bonds are matured and are repaid.
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10. 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)
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.
Yours faithfully,
Sd/
(Raksha Mishra)
General Manager