The Reserve Bank of India (RBI) on Monday announced procedural guidelines for servicing of sovereign gold bonds, with a view of increasing the ease with which customers are serviced.
Sovereign gold bonds are bonds linked to the price of gold, which means that investors would get the same return on these instruments as they would by purchasing physical gold.
The central bank said receiving offices — all scheduled commercial banks (excluding regional rural banks), recognised stock exchanges (National Stock Exchange and BSE), designated post offices and the Stock Holding Corporation of India — have to now identify a nodal office or branch for servicing these bonds. All applications received at various branches or offices can be forwarded to the nodal office for further processing after initial scrutiny.
The RBI said customers can now make requests for their bonds to be converted to a dematerialised form, either at the time of subscription or at any subsequent occasion.
Govt allows more grace period for farm loan repayment, says RBI. The Reserve Bank of India (RBI) on Monday said the government has allowed an additional grace period of 60 days for prompt repayment incentive of 3% to farmers whose crop loan repayments are due between November 1 and December 31, if they repay within 60 days from that period.
In terms of the extant Interest Subvention Scheme for the current financial year, besides subvention of 2% per annum, an additional interest subvention of 3% is also provided from the date of disbursement of the crop loan up to the actual date of repayment or up to the due date fixed by banks for repayment, whichever is earlier, subject to a maximum period of one year from the date of disbursement.
“In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of Specified Bank Notes (SBNs) and the subsequent notification dated November 21, 2016 issued by RBI, it has been decided by the GoI to provide an additional grace period of 60 days…,” it said.