Page 49 - Banking Finance August 2017

RBI CIRCULAR

of Directors", wherein it has been advised that Audit 2. Joint holding and nomination
Committee of the Board of Directors (ACB) should be Multiple joint holders and nominees (of first holder) are
chaired by any one of the non-executive/ non-official permitted. Necessary details may be obtained from the
directors. applicants as per practice.
2. In view of the bifurcation of the post of Chairman and 3. Know-Your-Customer (KYC) requirements
Managing Director of Public Sector Banks (PSBs) by Know-Your-Customer (KYC) norms shall be the same as
Government of India into a non-executive Chairman to that for purchase of physical form of gold. Identification
give an overall policy direction to the bank and a full documents such as passport, Permanent Account
time executive Managing Director and Chief Executive Number (PAN) Card, Voter's Identity Card, Aadhaar
Officer (MD&CEO) to oversee the day to day card shall be required. In case of minors only, the bank
functioning of the bank (GOI notification dated April 24, account number may also be considered as valid for KYC
2015), it is clarified that in banks where the Board of verification. KYC will be done by the issuing banks/SHCIL
Directors is chaired by a non-executive Chairman, offices/Post Offices/agents.
there will not be any restriction if he/she is also 4. Interest on application money
nominated to the Audit Committee of the Board of
Applicants will be paid interest at prevailing savings
Directors.
bank rate from the date of realization of payment to
3. The other instructions, as amended from time to time, the settlement date, ie. the period for which they are
shall remain unchanged. out of funds. In case the applicant's bank account is not
4. Please acknowledge receipt. with the receiving bank, the interest has to be credited
by electronic fund transfer to the account details

Yours faithfully provided by the applicant.
(Indrani Banerjee) 5. Cancellation
Chief General Manager Cancellation of application is permitted till the closure
of the issue, i.e., July 14, 2017. Part cancellation of
Sovereign Gold Bonds, 2017-18 - Series II submitted request for purchase of gold bonds is not
permitted. No interest on application money needs to
- Operational Guidelines be paid if the application is cancelled.

RBI/2017-18/18 6. Lien marking
IDMD.CDD.No.29/14.04.050/2017-18 As the bonds are government securities, lien marking,
etc. will be as per the extant legal provisions of
This has reference to the GoI notification F.No.4(20)-B/ Government Securities Act, 2006 and rules framed
(W&M)/2017 and RBI circular IDMD.CDD.No.28/14.04.050/ there under.
2017-18 dated July 06, 2017 on the Sovereign Gold Bonds, 7. Agency arrangement
2017-18-Series II. FAQs in this regard have been placed on Scheduled Commercial Banks may engage NBFCs, NSC
our website (www.rbi.org.in). Operational guidelines with agents and others to collect application forms on their
regard to this scheme are given below: behalf. Banks may enter into arrangements or tie-ups
1. Application with such entities. Commission for distribution shall be
Application forms from investors will be received at paid at the rate of rupee one per hundred of the total
branches during normal banking hours from July 10, subscription received by the receiving offices on the
2017 to July 14, 2017. Receiving Offices need to ensure applications received and receiving offices shall share at
least 50% of the commission so received with the agents
that the application is complete in all respects as
or sub-agents for the business procured through them.
incomplete applications are liable to be rejected.
Relevant additional details may be obtained from the 8. Processing through RBI's e-Kuber system
applicants, where necessary. The Receiving Offices may Sovereign Gold Bonds will be available for subscription
make arrangements to enable the investors to apply at the branches of scheduled commercial banks and
online, in the interest of better customer service. designated post offices through RBI's e- Kuber system.

BANKING FINANCE | AUGUST | 2017 | 49

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