Gist on Sovereign Gold Bond(SGB) in India Post

 Gist on Sovereign Gold Bond(SGB) in India Post

• Investor should mention the PAN card details in application with self attested PAN card Xerox copy
• If he/she has already invested in SBG bond, he/she should use the already generated Investor ID (RBI’s E-Kuber) while applying earlier or Inflation Indexed National Savings Securities- Cumulative, 2013
• In case of failure to quote the same, the E-Kuber portal shall reject the application, while uploading the same
• Cash can be accepted upto Rs.20000
• The cheque/ demand drafts shall be drawn in favour of the RO
• ROs need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected.
• On receipt of complete application as above, the ROs shall issue an acknowledgement receipt
• The ROs are required to enter the data or carry out bulk upload for the subscriptions received by them in RBI’s E-Kuber portal. They shall ensure accuracy of data to prevent occurrence of any inadvertent errors
• No interest is payable, in case the application is rejected for any reason attributable to the investor.
• The status of application rejected by RBI’s E-Kuber system should be notified by ROs and subscription amount refunded without any delay to the customer.
• Any delay on the part of ROs to refund the amount to any applicant, whose application is rejected will attract penalty @ Repo rate +2% for each day of delay.
• The nominations can be indicated by the customer at the time of subscribing to the bonds (in the prescribed Form D' or at a later date
• The Bonds are PO in the form of Stock Certificate and are therefore transferable before maturity to eligible transferees either wholly or in part by execution of an instrument of transfer
• The bonds may be used as collateral security for any loan.
• The interest on the bonds, as applicable, shall be paid on a half yearly basis.
• The amount will be credited by RBI to the bank account of the holder of bonds in case of bond held in BLA through electronic means on the date on which the interest is payable
• The Bond shall be repayable on the expiration of eight years from the date of issue of the bond
• Premature redemption of the bonds is permitted after five year from the date of issue of such bond, on the date on which the next interest is payable
• The application forms and other requests may be preserved by the ROs/Depository Participants till the maturity of the bond.
• Premature redemption request may be preserved for three years from the date of payment of proceeds.