72

In exercise of 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 :—

Short title and commencement.

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

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

Definitions.

2. 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.

Eligibility for subscribing to Gold Bonds.

3. 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.

Form of subscription.

4. (1) Subscription will be only 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.

Procedure for making application for subscription to Gold Bonds.

5. (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.

Form of issue of Gold Bonds.

6. (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.

Period of subscription.

7. 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.

Repayment and interest.

8. (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.

Transfer of Gold Bonds.

9. (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.

Loans and advances.

10. 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.

Nomination by the subscriber.

11. (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 Form C.

(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 precedeased 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 nominee :

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

Application form for Gold Bonds, 1998

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

Provisional Receipt No.

(To be indicated by Receiving Office)

To

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.

Name of applicant                                                                      .............................................

Date of birth in case of minor                                                    .............................................

                                                                                                             date  month  year

Full name of Parent/guardian (in

case of minor)                                                                            .............................................

Address of the applicant/guardian                                             .............................................

(in case of minor)                                                                       .............................................

                                                                                              Pin.............................................

Second Applicant’s name                                                          .............................................

Address of the 2nd applicant                                                     .............................................

                                                                                              Pin.............................................

Third Applicant’s name                                                             .............................................

Address of the 3rd applicant                                                      .............................................

                                                                                              Pin.............................................

Please (tick) whichever is applicable :

The application is being made—

(i)    in individual capacity                        ( iv)    on behalf of minor as father

(ii)   in individual capacity on any one               mother/legal guardian/

        or survivor basis                                         authorised representative

(iii)  in individual capacity on joint basis   (v)    as karta of HUF

                                                                   ( vi)    as trustees of trust

                                                                 ( vii)    or behalf of firm/company

   2.  Occupation of first Applicant or Guardian  [Please ü (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 :

            Promissory Note                                     Stock Certificate

          No.                    Denomination*            No                   Denomination

        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 RBI............./SBI..............**

* Delete what is not applicable.

** Please indicate one of the offices specified in Annexure I.

   7.  Particulars of gold tendered :

No.              of the tender                            grammes         weight in grammes

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.

Signature of         1......................        2....................          3..................

Tenderer/s (or     (1st applicant name)  (2nd applicant name) (3rd applicant name)

representative)    Name                       Name                       Name

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

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

WITNESS FORM

To be filled in case of thumb impression by the applicant

   1.  Name of witness.......................     2.  Name of witness......................

        Signature.....................................        Signature....................................

        Address.........................................      Address........................................

   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.......................... ^U (specified below).

Date of    Distinguishing      Weight in    Name  Address         Date of      Relationship

issue        number of Bond   grammes                                       birth        to the holder

2. *As.....................................................................the sole nominee above is a minor on this date, I,............................................ 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.

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

Date : ............................                                   Signature/Thumb impression

                                                                      name and address of the holder

Signature, name and address of witness.................................

1.   ...................................                                           2..................................

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

UTo 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 11(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

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

Date : ................                                               Signature/Thumb impression

                                                                                                    of the holder

Name, Signature and address of witnesses :

1.............................................                            2...........................................

               (      )                                                                           (           )

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

ANNEXURE I

[See paragraph 2(c)]

Gold Bonds, 1998

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 :—

        Ahmedabad                                                     Jaipur

        Bangalore                                                        Kanpur

        Bhubaneswar                                                  Madras

        Bombay (Fort)                                                Nagpur

        Calcutta                                                           New Delhi

        Guwahati                                                         Patna

        Hyderabad                                                       Thiruvananthapuram

   2.  Main branches of State Bank of India at—

        Agra                        Guntur                     Panaji

        Ahmedabad             Guwahati                 Patna

        Ajmer                      Gwalior                   Pune

        Akola                      Hubli                       Raipur

        Aligarh                    Hyderabad               Rajkot

        Allahabad                Indore                      Ranchi

        Alleppey                 Jabalpur                   Ratlam

        Ambala City            Jaipur                      Salem

        Aurangabad             Jalandhar                 Shillong

        Bangalore                Jalgaon                    Shimla

        Baroda                     Jodhpur                   Solapur

        Belgaum                  Kanpur                    Sriganganagar

        Bhopal                     Khandwa                 Surat

        Bhubaneswar          Kolhapur                 Thiruvananthapuram

        Bikaner City            Lucknow                 Tiruchirapalli

        Bombay                   Ludhiana                 Tirupati

        Burdwan                 Madras                    Trichur

        Calcutta                   Madurai                   Udaipur

        Calicut                     Mangalore               Ujjain

        Chandigarh             Mathura                   Varanasi

        Coimbatore             Meerut                     Vajayawada

        Cuttack                    Muzaffarpur

        Ernakulam               Nagpur

                                        Nasik

                                        New Delhi

ANNEXURE II

[See paragraph 4(3)]

Gold Bonds, 1998

Refining losses of Gold

fineness Range                                   Deduction towards losses

(per mille)                                                (in terms of %age)

Over 995.0                                                           0.05

950 to 994.9                                                         0.10

900.1 to 9499                                                       0.15

800.1 to 900.0                                                      0.20

650.1 to 800.0                                                      0.25

500.1 to 650.0                                                      0.30

400.1 to 500.0                                                      0.35

300.1 to 400.0                                                      0.40

100.1 to 300.0                                                      0.50

Below 100                                                           1.00

Gold Bonds Scheme, 1993 : Restriction on gold bond renewal

The Gold Bonds Scheme, 1993, issued in terms of the Government of India, Ministry of Finance (Department of Economic Affairs), Notification No. G.S.R. 76(E), dated 18th February, 1993*, are repayable in gold from the 15th March, 1998. As 15th March, 1998, happens to be Sunday, the repayment of gold bonds will be made on the previous working day, i.e., 14th March, 1998. For this pur­pose, it is necessary to determine, in advance, the precise quantities of gold of various denominations required for repay­ment at each centre and arrange for their manufacture by the Government Mint and also timely despatch to the repayment centres spread all over the country. To facilitate these arrangements, connected with repayment of these bonds, the bond holders are informed that a shut period would be imposed from 1st December, 1997, and as from this date Public Debt Offices/Agency banks will not allow requests for renewal, consolidation, sub-division and/or change of effacement of the said bonds.

Source : Issued by the Department of Economic Affairs, Ministry of Fi­nance, New     Delhi, dated 27-11-1997.