RBI Revises Operational Guidelines for Floating Rate Savings Bonds 2020

Circular No. RBI/2026-27/06 IDMD.RETL.No.S23/13.01.300/2026-27, Dated 02.04.2026

The Reserve Bank of India (RBI) has reviewed and revised the operational guidelines for Floating Rate Savings Bonds, 2020 (Taxable), exercising powers under Section 29(2) of the Government Securities Act, 2006.

1. Effective Date and Applicability

The revised guidelines are effective from the date of the circular and supersede the earlier operational guidelines issued in June 2020.

2. Comprehensive Framework for Issuance and Servicing

The updated guidelines provide a detailed framework for issuance and servicing of bonds through designated Receiving Offices, covering:

Receipt and processing of applications
Opening and maintenance of Bond Ledger Accounts (BLA)
Nomination facilities
Interest payments
Premature encashment provisions
Repayment on maturity

3. Handling of Special Cases

The guidelines also lay down procedures for:

Recognition of claims in case of death of the investor
Handling of unpaid or unclaimed amounts
Processing of reimbursement claims

This ensures clarity and uniformity in dealing with exceptional situations.

4. Audit, Compliance, and Reporting Requirements

The framework includes provisions relating to:

Audit and compliance checks
Reconciliation and reporting obligations
Ensuring accuracy and accountability in operations

5. Investor Services and Grievance Redressal

To enhance customer experience, the guidelines specify:

Investor service standards
Grievance redressal mechanisms

6. Operational Provisions for Receiving Offices

Additional provisions cover:

Remuneration to Receiving Offices
Penalties for non-compliance
Preservation and maintenance of records

7. Conclusion

The revised guidelines provide a comprehensive and structured operational framework for Floating Rate Savings Bonds, ensuring efficient administration, improved investor protection, and enhanced regulatory oversight.