RBI/2004/ 170
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,

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.

Relief Bond / Saving Bond Schemes Nomination facility

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Offices/Agency Banks may issue ‘Acknowledgement of Nomination’.
7. 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

1. When the Certificate/BLA is held by an adult on behalf of a minor;
2. When the holder has no beneficial interest in the Certificate but holds it in an official or fiduciary capacity and
3. 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 :

1. If the holder applies to the Office for substitution or cancellation and the substitution or cancellation is duly registered by the office.
2. If the holder transfers the Certificate

In case, detailed clarifications are required on specific issues, the circulars/indicated above may please be referred to.