PNB asks some bond customers to visit bank branches, verify accounts

Instruction meant for customers of sovereign gold and RBI bonds in case of unclaimed interest or principal of more than six years

Investors in Punjab National Bank’s sovereign gold bond (SGB) and RBI Bond schemes must within five days visit branches to verify their account details if they have not received interest payments, or if bonds have matured or are nearing maturity, said the state-owned lender on Tuesday.

 

What are SGBs

 

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The SGB is issued by the Reserve Bank of India (RBI) on behalf of the government.

 

 

Punjab National Bank statement

 

“All Sovereign Gold Bond (SGB)/RBI Bond Investors of PNB, particularly those whose interest are not being paid and whose bond is already matured or going to mature are requested to visit their branch and verify the bank account within 5 days,” said PNB on X (formerly Twitter).

 

“In case of a wrong account number or closed account number, bank will not be liable for any delay. In case of unclaimed interest or principal more than 6 years, customers have to follow RBI guidelines as mentioned on RBI website.”

 

RBI guidelines

 

According to RBI guidelines, if the interest or redemption amount is not claimed within 30 days of the due date, the listed entity must transfer the amount to an escrow account within seven days following the expiry of the 30-day period. Any amount that remains unclaimed for over seven years should be transferred to the IPEF by the Treasury Department, along with any accrued interest. Refunds from the unclaimed amounts credited to the IPEF will be provided upon valid claims made by eligible and identifiable investors.

 

RBI FAQ about SGB according to RBI website

 

What are the procedures involved during redemption?

 

The investor will be advised one month before maturity regarding the ensuing maturity of the bond.

 

On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.

 

In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.

 

What is the procedure to be followed in the eventuality of death of an investor?

 

“The nominee/nominees to the bond may approach the respective Receiving Office with their claim,” according to the RBI.

 

“The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, claim of the executors or administrators of the deceased holder or claim of the holder of the succession certificate (issued under Part X of Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.”