Circular Ltr. No.

: AXISB/CCPH EASY PAY /187/2015-16

Date: 16-01-2016

The Branch Head, All branches including extension counters,

Circle Business Banking Heads

Collections for Sovereign Gold Bonds, 2015-16 through Easypay (Branch and online channels)
The Branch Head, All branches including extension counters, The Regional Distribution Heads, Circle Heads, Circle
Transaction Banking Heads, Department Head IT, CCPH

Government of India has vide its Notification F.No. 4(19)-W&M/2014 dated January 14, 2016 announced that the
Sovereign Gold Bonds, 2016 (the Bonds) will be open for subscription from January 18, 2016 to January 22, 2016.
The Government of India may, with prior notice, close the Scheme before the specified period. The terms and
conditions of the issuance of the Bonds shall be as follows:
1. Eligibility for Investment:
The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity
as such individual, or on behalf of minor child, or jointly with any other individual. The Bonds may also be
held by a Trust, Charitable Institution and University. Person resident in India is defined under section 2(v)
read with section 2 (u) of the Foreign Exchange Management Act, 1999.
2. Form of Security
The Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the
Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall
be eligible for conversion into de-mat form.
3. Date of Issue
Date of issuance shall be February 08, 2016.
The investors can apply for the Bonds at Axis Bank from January 18 2016 to January 22, 2016. The issuance
can be closed by Government of India earlier than February 8, 2016 with a prior notice.
4. Denomination
The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in
the Bonds shall be two grams with a maximum limit of subscription of five hundred grams per person per
fiscal year (April March).
5. Issue Price
Price of the Bonds shall be fixed in Indian Rupees on the basis of the previous weeks (Monday Friday)
simple average closing price for gold of 999 purity, published by the India Bullion and Jewellers Association
Ltd. (IBJA).
6. Interest
The Bonds shall bear interest at the rate of 2.75 per cent (fixed rate) per annum on the amount of initial
investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along
with the principal.
7. Interest on application money

CCPH@NPC-II, 5th Floor, Raheja Mindspace IT Park, Near Sanskruti Township, Pocharam, Ghatkesar (Mandal), Hyderabad-500088:
Telephone Nos: 040-44801000 Fax No.: 040-44801567
Regd. Office: Trishul, 3rd Floor, Opp: Samrateshwar Temple, Law Garden, Ellis Bridge, AHMEDABAD 380006.

Applicants will be paid interest at prevailing savings bank rate from the date of realization of payment to
the settlement date, i.e. the period for which they are out of funds. In case the applicants bank account is
not with the Axis bank, the interest has to be credited by electronic fund transfer to the account details
provided by the applicant.
8. Payment Options
Payment shall be accepted in Indian Rupees through Cash with upper limit of Rs. 20000.00 or Demand
Drafts or Local Cheque or Electronic banking. Cheque or draft should be drawn in favour of Axis Bank and
payable at the place where the applications are tendered.
9. Redemption
i)
The Bonds shall be repayable on the expiration of eight years from the date of issue. Pre-mature
redemption of the Bond is allowed from fifth year of the date of issue on the interest payment
dates.
ii)

The redemption price shall be fixed in Indian Rupees on the basis of the previous weeks
(Monday Friday) simple average closing price for gold of 999 purity, published by IBJA.

10. Repayment
Axis Bank shall inform the investor of the date of maturity of the Bonds, one month before its maturity.
11. Eligibility for Statutory Liquidity Ratio (SLR)
The investment in the Bonds shall be eligible for SLR.
12. Loan against Bonds
The Bonds may be used as collateral for loans. The Loan to Value ratio will be as applicable to ordinary gold
loan mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by Axis
Bank.
13. Lien marking
As the bonds are government securities, lien marking, etc. will be as per the extant legal provisions of
Government Securities Act, 2006 and rules framed there under.
14. Tax Treatment
Interest on the Bonds shall be taxable as per the provisions of the Income-tax Act, 1961. Capital gains tax
treatment will be the same as that for physical gold.
15. Applications
Subscription for the Bonds may be made in the prescribed application form (Form A) or in any other form
as near as thereto stating clearly the grams of gold and the full name and address of the applicant.
Application forms from investors will be received at Branches during normal banking hours. An
acknowledgment receipt will be issued in Form B to the applicant.
16. Printing of Holding Certificate
Holding Certificate needs to be printed in colour on A4 size 100 GSM paper
17. Nomination
Nomination and its cancellation shall be made in Form D and Form E, respectively, in accordance with
the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities
Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December, 2007.
18. Transferability
The Bonds shall be transferable by execution of an Instrument of transfer as in Form F, in accordance with
the provisions of the Government Securities Act, 2006 (38 of 2006) and the Government Securities
Regulations, 2007, published in part III, Section 4 of the Gazette of India dated the 1st December, 2007.
19. Tradability in Bonds
The Bonds shall be eligible for trading from such date as may be notified by the Reserve Bank of India.
CCPH@NPC-II, 5th Floor, Raheja Mindspace IT Park, Near Sanskruti Township, Pocharam, Ghatkesar (Mandal), Hyderabad-500088:
Telephone Nos: 040-44801000 Fax No.: 040-44801567
Regd. Office: Trishul, 3rd Floor, Opp: Samrateshwar Temple, Law Garden, Ellis Bridge, AHMEDABAD 380006.

20. Cancellation
Cancellation of application is permitted till the closure of the issue, i.e., November 20, 2015. Part
cancellation of submitted request for purchase of gold bonds is not permitted. No interest on application
money needs to be paid if the application is cancelled.
21. Processing through RBIs e-Kuber system
Sovereign Gold Bonds will be available for subscription at the branches of Axis Bank through RBIs e-Kuber
system. The e-Kuber system can be accessed either through Infinet or Internet. Axis Bank needs to enter the
data or carry out bulk upload for the subscriptions received by them. An immediate confirmation will be
provided for receipt of application. In addition, a confirmation scroll will be provided for file uploads to
enable Axis Bank to update their database. On the date of allotment, i.e., February 08, 2016, Holding
Certificates will be generated for all the subscriptions. Axis Bank will download the same and take printouts.
The Holding Certificates will also be sent through e-mail to the investors who have provided their email
address. For the investors who have specified their Demat account details, the securities will be credited in
their Demat accounts on the allotment date.
22. Commission for distribution
Commission for distribution shall be paid at the rate of rupee one per hundred of the total subscription
received by the Axis Bank Branches on the applications received and Axis Bank shall share at least 50% of
the commission so received with the agents or sub-agents for the business procured through them
(empanelled, if any).
23. Servicing and follow up
Axis Bank will provide necessary services with regards to this bond e.g. update contact details, receive
requests for premature encashment, etc. Axis Bank will be required to preserve applications till the bonds
are matured and are repaid.
24. All other terms and conditions specified in the notification of Government of India in the Ministry of Finance
(Department of Economic Affairs) vide number F. No.4(13) W&M/2008, dated the 8th October, 2008 shall
apply to the Bonds
25. Contact details
Any queries/clarifications may be e-mailed to the following:
Sovereign Gold Bond related: cgmidmd@rbi.org.in
IT related: CBOT@rbi.org.in
At Branch: Process
Collection of Sovereign Gold Bonds, 2015-16 has been launched at Branches through our Easypay module.
Process Flow

Customer will visit Axis Bank branch

Customer to provide duly filled application form (Form A) with necessary documents (viz Passport/
Aadhaar/PAN/TAN/ Voter ID)
Branch to enter all the details mentioned in this form correctly.
Application should be complete in all respects.
Incomplete applications may be rejected or delayed till full particulars are available.
In case the application is on behalf of a minor, please submit the original birth certificate from the School or
Municipal Authorities for verification, together with an attested copy.
Customer must provide bank account details for receiving payment through Electronic mode
(Interest/Redemption payment)
POST MATURITY INTEREST IS NOT PAYABLE.
CASH/DD/CHEQUE will be accepted

Mode of collection

CASH/DD/ CHEQUE at branches and other Electronic modes through EASYPAY online
Role of Collecting Branch
CCPH@NPC-II, 5th Floor, Raheja Mindspace IT Park, Near Sanskruti Township, Pocharam, Ghatkesar (Mandal), Hyderabad-500088:
Telephone Nos: 040-44801000 Fax No.: 040-44801567
Regd. Office: Trishul, 3rd Floor, Opp: Samrateshwar Temple, Law Garden, Ellis Bridge, AHMEDABAD 380006.

1.

The depositor will arrive at the branch counter with their CASH/DD/CHEQUE along with duly filled
Application form with necessary documents.
At the branch the Teller/bank official will login into the system accessed through the Single Sign on software
and go to BranchCollectionNew CollectionOthers followed by Sovereign Gold Bonds, 2015-16. The
user has to then feed the details as per application form provided by the customer.
Once the teller/official ensures that the CASH/DD/ CHEQUE is collected and the data is in order, he submits
the transaction in the system which will be authorized by the checker.
Acknowledgement receipt will be generated and to be provided to Depositor.

2.
3.
4.

Roles & Responsibility of CCPH

XML file generated for collections made through Easypay will be uploaded in e-Kuber portal of RBI.
If any customer has applied for Bonds in Demat form then CCPH will arrange to prepare a file in the
prescribed format and share it with the DP team for recordkeeping.
Inform the investors one month prior to maturity of the Bonds.
Half yearly interest payment
Mark Lien on the Bonds
Cancellation/Transfer/Redemption of bonds.

Please bring the contents of this circular to the notice of all concerned officials of the branch/extension counter.
In case of any operational queries, branches may contact CCPH, NPC-II Hyderabad on following numbers
040-44801802/1860/1821/1873
Kindly bring the contents of the Circular to the notice of all concerned officials in your branch.
RAMAKRISHNA V PODILA
AVP- CCPH, NPCII

CCPH@NPC-II, 5th Floor, Raheja Mindspace IT Park, Near Sanskruti Township, Pocharam, Ghatkesar (Mandal), Hyderabad-500088:
Telephone Nos: 040-44801000 Fax No.: 040-44801567
Regd. Office: Trishul, 3rd Floor, Opp: Samrateshwar Temple, Law Garden, Ellis Bridge, AHMEDABAD 380006.