Nomination Facility in Relief/Savings Bonds
The Reserve Bank of India (RBI) has issued a master circular regarding the nomination facility in Relief/Savings bond schemes.
The nomination facility is available to investors in these bond schemes, and it is recommended that investors avail of this facility to avoid complications in the event of their demise.
Key Points:
The nomination should be made before the maturity of the bond. In the event of the death of the bondholder, the nominee(s) will receive the proceeds of the bond.
Exceptions to the nomination facility are allowed in certain cases, such as when the bond is held by a minor or by a non-resident Indian.
Cancellation of nomination is also permitted, and the bondholder can change the nominee at any time before the maturity of the bond.
The nomination facility is intended to simplify the process of claiming the proceeds of the bond in the event of the bondholder’s death, and investors are advised to take advantage of this facility.
Chat with the Master Circular:
Download: Master Circular on Nomination facility in Relief/Savings bonds