Sovereign Gold Bond: PNB’s important announcement for SGB investors regarding maturity amount, interest

Punjab National Bank (PNB) has informed that its Sovereign Gold Bond (SGB) and RBI Bond investors customers who have not received their interest and whose bonds have matured or are about to mature are required to visit their branch and verify their bank accounts within 5 days. PNB made this announcement via a post on its social media handle on X.

What is a Sovereign Gold Bond (SGB)? Who is the issuer

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by the Reserve Bank on behalf of the Government of India.

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What is PNB SGB investors should know

The bank said that “Incase of wrong account number or closed account number bank will not be liable for any delay. In case of unclaimed interest or principal more than 6 years, customers has to follow RBI guidelines as mentioned on RBI website.”

According to the RBI guidelines. “where the interest/redemption amount has not been claimed within 30 days from due date the listed entity shall within 7 days from date of expiry of 30 days transfer the amount to an Escrow account. The amount remaining unclaimed for a period of more than 7 years shall be transferred to IPEF by the Treasury Department, along with interest accrued, if any. The unclaimed amounts credited to IPEF shall be refunded upon making payment to eligible and identifiable investors making a claim to the Fund.”

“Further it is requested not to close their operative account till redemption. In case of urgency for closure of operative account, please provide alternative account details before proceeding for operative account closure failing which redemption and interest amount will not be credited”, the bank said.

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Important FAQs related to SGB redemption according to the RBI website.

What are the procedures involved during redemption?
The investor will be advised one month before maturity regarding the ensuing maturity of the bond.
On the date of maturity, the maturity proceeds will be credited to the bank account as per the details on record.
In case there are changes in any details, such as, account number, email ids, then the investor must intimate the bank/SHCIL/PO promptly.

What is the procedure to be followed in the eventuality of death of an investor?
The nominee/nominees to the bond may approach the respective Receiving Office with their claim. The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, claim of the executors or administrators of the deceased holder or claim of the holder of the succession certificate (issued under Part X of Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.