Is there any nomination facility on RBI Bonds?
A sole holder or a sole surviving holder of a Bond, being an individual may nominate in part of this application form one or more persons who shall be entitled to the Bond and the payment thereon, in the event of his death.
Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bond shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
No nomination shall be made in respect of the Bonds issued in the name of a minor. A nomination made by a holder of a Bond may be varied by a fresh nomination in Part B or as near thereto as may be, or may be cancelled by giving notice in writing to the Public Debt Office of the Reserve Bank of India in Form C annexed to the application form.
Every nomination and every cancellation or variation shall be registered at the Public Debit Office of the Reserve Bank of India where the bond is issued and shall be effective from the date of such registration.
If the nominee is a minor, the holder of the Bond may appoint any person to receive the Bond/amount due in the event of his death during the minority of the nominee.
The provisions contained in this paragraph shall apply only to the Bond issued in the form of Bond Ledger Account held by an individual.
Nomination facility is not available for bonds held jointly or in the name of HUF or minor or in respect of bonds held in the form of Government Promissory Notes.