GOLD BONDS SCHEME, 1993

In exercise of the powers conferred by sub-section (1) of section 3 of the Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (No. 22 of 1993), the Central Government hereby makes the following Scheme, namely: 

Scheme - 1. Short title and commencement.

(1)     This Scheme may be called the Gold Bonds Scheme, 1993.

(2)     It shall come into force on the 15th day of March, 1993.

Scheme - 2. Definitions.

In this Scheme, unless the context otherwise requires,

(a)      "Form" means a form appended to this Scheme;

(b)      "Ordinance" means the Gold Bonds (Immunities and Exemptions) Ordinance, 1993 (No. 22 of 1993);

(c)      "receiving office" means the offices or branches of the Reserve Bank of India or of the State Bank of India specified in Annexure I to this Scheme;

(d)      all other words and expressions used in this Scheme but not defined and defined in the Ordinance, shall have the meanings respectively assigned to them in the Ordinance.

Scheme - 3. Eligibility for subscribing to Gold Bonds.

Subscription to Gold Bonds may be made by a resident in India, being :

(i)       an individual, in his capacity as such individual or on behalf of a minor child or jointly with any such other individual;

(ii)      a Hindu undivided family;

(iii)     trustees of a trust;

(iv)    a firm; or

(v)      a company.

Scheme - 4. Form of subscription.

(1)     Subscription will beonly in the form of gold. In case of ornaments, the same should be melted after removing the stones, if any, and then the gold should be tendered :

Provided that where the gold tendered is found, after assaying to contain deleterious elements, such as selenium and tellurium beyond limits acceptable to Government Mint, it will not be accepted for the issue of Gold Bonds and will be returned to the tenderer.

(2)     The minimum limit for subscription will be five hundred grammes of gold. There shall be no maximum limit for subscription.

(3)     The gold tendered will be assayed by Government Mint and expressed in terms of 0.995 fineness. The Gold Bonds to be issued shall specify the weight of gold of 0.95 fineness as determined after assay of the gold tendered and after deducting refining losses as provided in Annexure II to this Scheme.

(4)     The weight of the gold at 0.995 fineness as determined by the Government Mint and indicated by the Reserve Bank of India in the Gold Bonds shall be binding on the subscriber.

(5)     The Gold Bond will be issued for the quantity equal to the nearest lower whole gramme of gold and the value of the fraction over and above the quantity accepted for issue of the Gold Bond will be paid to the subscriber at the time of delivery of the Gold Bond at the rate of rupees four hundred per gramme.

(6)     The Bonds will be issued for a minimum denomination of five hundred grammes of gold, except in cases where the gold tendered after assaying is of a weight of less than five hundred grammes.

(7)     The date of issue of Gold Bonds shall be the date on which the gold is tendered at the receiving office.

Scheme - 5. Procedure for making application for subscription to Gold Bonds.

(1)     Every subscriber who is desirous of making subscription to the Gold Bond shall apply to any receiving office in Form 'A' or as near thereto as possible and tender at least five hundred grammes of gold along with the application.

(2)     On receipt of an application under sub-paragraph (1), the receiving office shall issue a provisional receipt for the weight of the gold tendered by the subscriber.

(3)     After the gold has been assayed by the Government Mint, the Gold Bond will be issued by the Public Debt Office of the Reserve Bank of India indicating weight of the gold of 0.995 fineness as determined by the Government Mint rounded to the nearest lower whole gramme along with the final receipt.

Scheme - 6. Form of issue of Gold Bonds.

(1)     The Gold Bonds will be issued in the form of either Government Promis­sory Note or Stock Certificate, depending upon the option exercised by the subscriber:

Provided that where no option is exercised by the subscriber, the Gold Bond shall be issued in the form of Stock Certificate.

(2)     The Gold Bond issued in one form cannot be converted into the other form.

Scheme - 7. Period of subscription.

The subscription for the Gold Bonds under this Scheme shall open on and from the 15th day of March, 1993 and will close on the 14th day of June, 1993.

Scheme - 8. Repayment and interest.

(1)     The Gold Bonds will be repaid in the form of gold of 0.995 fineness five years after the date of issue.

(2)     The Bonds will bear a lump sum interest for the period of five years payable on maturity in rupees at the rate of rupees forty for each gramme of gold of 0.995 fineness.

(3)     The tender of the gold on maturity of the Gold Bonds along with the interest due thereon will be made from the receiving office as specified by the subscriber in the application form.

Scheme - 9. Transfer of Gold Bonds.

(1)     The Gold Bond in the form of Stock Certificate is transferable by execution of an Instrument of transfer annexed to it.

(2)     On transfer of the Gold Bond issued in the form of Stock Certificate, the transferee shall get the Instrument of transfer registered in Public Debt Office of the Reserve Bank of India at Bombay.

(3)     In the case of transfer the stock certificate should be surrendered at the Public Debt Office, Bombay where it stands registered. Where the stock is transferred in full or in part the purchaser will receive a certificate for the quantity of gold transferred and the transferor a new certificate for the balance, if any.

(4)     The Gold Bonds in the form of Promissory Note are transferable by endorse­ment and delivery.

Scheme - 10. Loans and advances.

The Gold Bonds can be held by any banking company, State Bank of India, a subsidiary bank, a corresponding new bank or a co-operative bank as defined in the Banking Regulation Act, 1949, Regional Rural Banks established under section 3 of the Regional Rural Banks Act, 1976, if the Gold Bonds are transferred to them under paragraph 9 for the limited purpose of obtaining an advance against the security of such Bonds.

Scheme - 11. Nomination by the subscriber.

(1)     The provisions contained in this paragraph shall apply to the Gold Bonds issued in the form of a Stock Certificate.

(2)     The sole holder or sole surviving holder of a Gold Bond being an individual, may nominate in Form B or as near thereto as may be, one or more persons who shall be entitled to the Bond and the payment thereof, in the event of the death of the subscriber:

Provided that no nomination shall be made under sub-paragraph (2) where the individual has subscribed to the Gold Bond on behalf of a minor.

(3)     If the nominee is a minor, the subscriber may appoint any person to receive the gold due under this Scheme in the event of the death of the subscriber during the minority of the nominee.

(4)     A nomination made by a subscriber may be cancelled or varied by a fresh nomination in Form B or as near thereto as possible, or may be cancelled by giving notice in writing to the Public Debt Office of the Reserve Bank of India in

(5)     Every nomination and every cancellation or variation thereof shall be registered at the Public Debt Office of the Reserve Bank of India and shall be effective from the date of such registration.

(6)     Where the nomination is in favour of more than one person, the nominee first named shall alone have the right to receive the gold on maturity along with interest which is due to the deceased subscriber.

(7)     Where the nominee first named has predeceased the subscriber and the subscriber has not cancelled the nomination or substituted the nomination, the nominee second named shall be entitled to receive the gold on maturity along with the interest which is due to the deceased subscriber and so on in respect of other successive nominees :

Provided that if any nominee is dead, the surviving nominee or nominees shall in addition to the proof of the death of the subscriber also furnish proof of death of the deceased nominee or nominees, as the case may be.

FORM A

[See paragraph 5(1)] Application No. ..................

Application form for Gold Bonds, 1998

[Please read carefully the provisions of the Cold Bonds Scheme, 1993]

Scheme Opens On 15-3-1993

Scheme Closes On 14-6-1993

Provisional Receipt No.

(To be indicated by Receiving Office)

To

The Manager

The Branch Manager

Reserve Bank of India State Bank of India

Dear Sir,

In terms of the provisions of the Gold Bonds Scheme, 1993..............................................................................................................................................I/We
(Name/s and addresses as given below) hereby tender.......................................................................................................................................grammes (in
words.......................................................................grammes) of gold as per particulars appended and request that Gold Bonds, 1998 equivalent to the weight of the gold tendered as determined after assay expressed in grammes of gold of 0.995 fineness rounded to the nearest lower whole gramme be issued to me/us.

Please v (tick) whichever is applicable :

1.        The application is being made

(i)       in individual capacity

(ii)      in individual capacity on any one or survivor basis

(iii)     in individual capacity on joint basis

(iv)    on behalf of minor as father/mother/legal guardian/authorised representative

(v)      as karta of HUF

(vi)    as trustees of trust

(vii)   on behalf of firm/company

2.        Occupation of first Applicant or Guardian [Please v (tick) as applicable].

(i)       Business

(ii)      Service

(iii)     Profession

(iv)    Agriculture

(v)      Housewife

(vi)    Others

3.        I/We have read and agree to comply with the terms of the abovementioned Scheme. I/We undertake to abide by the weight of gold at 0.995 fineness, after deduction of refining losses, as determined by the Government Mint and indicated by the Reserve Bank of India in the Gold Bond and agree that the value of fraction over and above the weight for which the Bond is issued will be paid at the rate of Rs. 400 per gramme.

4.        I/We request that the Bond(s) may be issued to me/us in the form of Promissory Note(s)/Stock Certificate(s) as indicated below:

If no preference is indicated, one Bond will be issued in the form of Stock Certificate.

5.        I/We also agree that the Bond will be redeemed in gold of 0.995 fineness but not in the original form/shape in which it is tendered.

6.        I request that the repayment of gold and payment of interest on the Bond/s may be made to me/us at RBL......../SBL..."

Delete what is not applicable,

Please indicate one of the offices specified in Annexure I.

7.        Particulars of gold tendered:

The Bond will be issued for a minimum denomination of 500 grammes except in cases where the gold tendered after assaying is for a weight of less than 500 grammes.

8.        I wish/do not wish(*) to make a nomination in respect of the Bond(s) applied for. The prescribed nomination form is enclosed.

Delete what is not applicable.

Office 

Stemp of Tenderer, if any 

Date............ Place..................

Tel. No......................................

WITNESS FORM

To be filled in case of thumb impression by the applicant

3.    The contents of the tender described in the application have been satisfactorily sealed in my presence.

Signature/Thumb impression of the Applicant/Guardian/Authorised Representative.

Date :.................

Place:..............

Witness in case of Thumb impression Signature(s) of the receiving

official(s)

Designation...................................

Stamp of receiving office.......

Name of witness:

Signature:

Address:

FORM B

[See paragraph 11(2) and (4)]

Gold Bonds, 1998

Form of Nomination

1.        I,.....................................................................................................................................................................................................................................................(name and address) nominate the following person(s) who shall on my death have the right to the Gold Bond/receive payments of the amount for the time being due on the Bond to be issued against provisional receipt No...................................... † (specified below).

2.        As.............................................................................................................................................................................................................................................................................. the sole nominee above is a minor on this date, I............................................................................................................................................... appoint Shri/Smt./Kumari.......................................................................................................................................................................................................................... (name & address) to receive the Bond/amount for the time being due on the above Bond/s in the event of my death during the minority of the said nominee................................

3.        $This nomination is in substitution of the nomination dated........................................................ made by me and registered in your books on the .................................................................................. which shall stand cancelled on registration of this nomination.

Signature, name and address of witnesses.................................................................................................

Not to be filled in, unless nominee is a minor.

To be filled if nomination form is completed along with the application.

This paragraph may be struck out when the nomination is not in substitution of one already made.

FORM C

[See paragraph 1.1(4)]

Gold Bonds, 1998

Notice of cancellation of nomination

I................................................................................................................................................................................................(Name and address) do hereby cancel the nomination dated...................................................................................................................................................... made by me in respect of the following Bond and registered by the Public Debt Office, ..................................,.....................................on the........................................................................................(date)

PARTICULARS OF THE GOLD BONDS, 1998

 

Name, Signature and address of witnesses:

To be filled if nomination is to be cancelled before issue of the Bonds.

ANNEXURE I

[See paragraph 2(c)]

GOLD BONDS. 199S

Offices/branches of Reserve Bank of India and main branches of State Bank of India specified for receiving applications for the Gold Bonds

1.        Offices of Reserve Bank of India at the following places, namely:

2.        Main branches of State Bank of India at

ANNEXURE II

[See paragraph 4(3)]

GOLD BONDS, 1993

Refining Losses of gold