Guidelines to Pradhan Mantri Garib Kalyan Deposit Scheme, 2016

[Ref: RBI/2016-17/188-IDMD.CDD.No. 1454/14.04.050/2016-17 dated 16th Dec 2016]

Sub: Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Operational Guidelines.

This has reference to the Central Government notification S.O. 4061 (E) and RBI circular IDMD.CDD.No. 1453/14.04.050/2016-17 dated December 16, 2016 on the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 (hereinafter referred to as scheme). FAQs in this regard have been placed on our website (www.rbi.org.in). Operational guidelines with regard to this scheme are given below:

1. Application

Application forms from declarants (any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016) for deposits under Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016, will be received at the branches of Authorised Banks (any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies) during normal banking hours from 17 December 2016 to 31 March 2017.

2. Know your customer requirements

(a) An application for the deposit under this Scheme shall be made in Form II, clearly indicating the amount, full name, Permanent Account Number (hereinafter referred to as “PAN”), Bank Account details (for receiving redemption proceeds), and address of the declarant.

(b) Provided that if the declarant does not hold a PAN, he shall apply for a PAN and provide the details of such PAN application along with acknowledgement number. Relevant additional details (e-mail ID etc) may be obtained from the applicants, where ever necessary. Authorized Banks need to ensure that the application is complete in all respects.

(c) The application shall be accompanied by an amount which shall not be less than twenty-five per cent of the undisclosed income declared under Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 tendered in the form of cash or draft or cheque or through electronic transfer.

(d) An acknowledgement receipt (part of Form II) shall be provided to the declarant after due authorization by the bank.

3. Furnishing Deposit details to Government of India

(a) The Authorised Bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.

(b) The Authorised Bank shall maintain the confidentiality of the data received in this regard.

4. Mode of holding and nomination

(a) On receipt of the details at RBI, Bonds Ledger Accounts shall be created and the deposits made under the scheme shall be held at the credit of the declarant by Reserve Bank of India.

(b) A certificate of holding shall be issued to declarant in Form I.

(c) The effective date of opening of the Bonds Ledger Account shall be the date of tender of cash or the date of realisation of draft/ cheque or electronic payment.

(d) The holder can nominate one or more persons.

5. Interest payment

No interest shall be payable on the deposits.

6. Processing through RBI’s e-kuber system

The Authorised Bank shall upload the details of deposit into Reserve Bank of India’s Core Banking Solution ‘e-Kuber’ on the date of tendering cash or electronic payment or on the date of realisation of draft/ cheque itself. The amount of deposit shall be transferred to Reserve Bank of India on the same day.

The e-Kuber system can be accessed either through Infinet or Internet. The authorized banks need to enter the data for the deposits received by them. They may ensure accuracy of data to prevent occurrence of any inadvertent errors. An immediate confirmation will be provided to the declarants for receipt of application. The Holding Certificates will be sent to the authorized banks through the e-Kuber which may be issued to the customers.

7. Servicing and follow up

Authorised banks will provide necessary services with regards to deposit made by the declarant e.g. updating bank account details, cancellation of nomination, etc. Authorized Banks will be required to preserve applications until repayment is made.

8. Commission/agency bank charges for authorised banks

No commission/agency bank charges will be paid to the banks for accepting deposits under the scheme or for servicing the declarants.

9. Contact details

Any queries/clarifications may be e-mailed.

[Ref: RBI/2016-17/187-IDMD.CDD.No. 1453/14.04.050/2016-17 dated 16th Dec 2016]

Sub: Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

The Government of India has vide the notification no. S.O. 4061 (E) dated December 16, 2016 announced the “Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS)”. This Scheme shall be applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

The terms and conditions of the scheme are as under:

2. Eligibility for Deposits.— The deposits under this Scheme shall be made from the 17th day of December, 2016 till 31st day of March, 2017, by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016

3. Form of the deposits.— The deposits shall be held at the credit of the declarant in Bonds Ledger Account maintained with Reserve Bank of India. A certificate of holding shall be issued to declarant in Form I. The Reserve Bank of India shall transfer the deposit received under this Scheme into the designated Reserve Fund in the Public account of the Government of India.

4. Authorised banks.— (a) Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (hereinafter referred to as Authorised Banks).

(b) The Authorised Bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.

(c) The authorised bank shall upload the details of deposit into Reserve Bank of India’s Core Banking Solution ‘e-Kuber’.

(d) The Reserve Bank of India and Authorised Bank shall maintain the confidentiality of the data received in this regard.

5. Subscription and Mode of investment in the Bonds Ledger Account.— (a) The deposits shall be accepted at all the Authorised Banks.

(b) The deposits shall be made in multiples of rupees one hundred.

(c) The deposit by a declarant shall not be less than twenty-five per cent of the undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

(d) The entire deposit shall be made, in a single payment, before filing declaration under sub-section (1) of section 199C ibid.

(e) The deposit shall be made in the form of cash or draft or cheque drawn in favour of the authorised bank accepting such deposit or by electronic transfer.

6. Effective date of deposit.— The effective date of opening of the Bonds Ledger Account shall be the date of tender of cash or the date of realisation of draft or cheque or transfer through electronic transfer.

7. Applications.— (a) An application for the deposit under this Scheme shall be made in Form II clearly indicating the amount, full name, Permanent Account Number (hereinafter referred to as “PAN”), Bank Account details (for receiving redemption proceeds), and address of the declarant. Provided that if the declarant does not hold a PAN, he shall apply for a PAN and provide the details of such PAN application along with acknowledgement number.

(b) The application under sub-paragraph (a) shall be accompanied by an amount which shall not be less than twenty-five per cent. of the undisclosed income in the form of cash or draft or cheque or through electronic transfer as provided under sub-paragraphs (c) and (d) of paragraph 5.

8. Nomination.— (a) A sole holder or a sole surviving holder of a Bonds Ledger Account, being an individual, may nominate in Form III, one or more persons who shall be entitled to the Bonds Ledger Account and the payment thereon in the event of his death.

(b) 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 Bonds Ledger Account 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.

(c) A nomination made by a holder of Bond Ledger Account may be varied by a fresh nomination, or may be cancelled by giving notice in writing to the Authorised Bank in Form IV.

(d) Every nomination and every cancellation or variation shall be registered at the Reserve Bank of India through the authorised bank and shall be effective from the date of such registration.

(e) If the nominee is a minor, the holder of Bonds Ledger Account may appoint any person to receive the Bonds Ledger Account or the amount due in the event of his death.

9. Transferability.— The transferability of the Bonds Ledger Account shall be limited to nominee or to the legal heir of an individual holder, in the event of his death.

10. Interest.— The deposits shall not bear any interest.

11. Tradability against Bonds.— The Bonds Ledger Account shall not be tradable.

12. Repayment.— The Bond Ledger Account shall be repayable on the expiration of four years from the date of deposit and redemption of such Bond Ledger Account before its maturity date shall not be allowed.

13. Interpretation.— The words and expressions used but not defined in this notification but defined in the Income-tax Act, 1961 (43 of 1961), the Government Securities Act, 2006 (38 of 2006) or the Finance Act, 2016 (28 of 2016) shall have the meanings respectively assigned to them in those Acts.

FREQUENTLY ASKED QUESTIONS

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

1. What is Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 is a scheme notified by the Government of India on December 16, 2016 which is applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

2. Who is eligible to deposit in PMGKS?

The deposit under this Scheme shall be made by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

3. In what form will the deposits under this scheme be held?

The Deposits shall be held at the credit of the declarant in Bond Ledger Accounts (BLA) maintained with Reserve Bank of India.

4. Who are the authorized agencies where the application and amount of deposit will be accepted?

Application and amount for the deposit (in the form of Bond Ledger Account) shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (Authorized Banks).

5. Where can declarants get the application form?

Application for the deposit will be available at branches of authorized banks. It is also available in the Reserve Bank of India website.

6. When can a declarant make the deposit into the scheme?

The deposits under this Scheme shall be made in a single payment in any of the authorized banks from the 17th day of December, 2016 till 31st day of March, 2017

7. What are the Know-Your-Customer (KYC) norms?

Permanent Account Number (PAN) is the KYC document for individuals depositing in the scheme. If a declarant does not hold PAN, he shall apply for PAN and provide the details of such PAN application along with acknowledgement number to the bank while making the application. On receipt of PAN, the details may be updated with the bank from which application was made.

8. What is the minimum and maximum limit for depositing in the scheme?

The deposit by a declarant shall not be less than twenty-five per cent of the undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016. Deposit shall be made in multiples of Rs. 100.

9. Will any interest be paid on the deposit under the scheme?

No interest shall be paid for deposits made in this scheme.

10. After making the deposit, will any documentary evidence be issued?

On deposit, an acknowledgement receipt mentioning name of declarant and amount deposited will be duly authorized and provided by the bank from which application was made. Subsequently a certificate of holding for the BLA will be issued which may be collected from the authorized bank.

11. When will the deposit be repaid ?

Repayment of the deposit will be made after a period of 4 years from the effective date of deposit (ie., date of tender of cash or the date of realization of draft or cheque or transfer through electronic transfer)

12. What will the declarant get on redemption?

On redemption, the entire amount deposited into the scheme will be repaid.

13. How will the declarant get the redemption amount?

The redemption amount will be credited to the bank account furnished by the person in the application form.

14. What are the procedures involved during redemption?

·        On the date of maturity, the 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, IFSC code, email ids etc then the investor must intimate Reserve Bank Of India , through the authorized banks promptly.

15. Can the deposit made into this scheme be prematurely redeemed ?

No, option for premature redemption of the BLA is not available.

16. Can the BLA be gifted/transferred to a relative or friend on some occasion?

No, the BLAs cannot be gifted/transferred to any relative or friend. Transferability of the Bond Ledger Account shall be limited to nominee or to the legal heir of an individual holder, only in the event of death of the declarant.

17. Who will provide other services to the declarants after deposit in the scheme?

The banks through which the deposit into this scheme was made will provide other customer services such as change of bank account details, cancellation of nominee etc.

18. What are the payment options for depositing in PMGKS?

The deposit shall be made in the form of cash or draft or cheque drawn in favour of the authorised bank accepting such deposit or by electronic transfer.

19. Whether nomination facility is available for these investments?

Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form. In case of cancellation/change in nomination, a separate form is to be filled and submitted to the authorized bank.

20. Are the BLAs tradable?

No, the Bonds ledger Account are not tradable.

21. To whom the queries regarding PMGKDS be sent?

Queries about the scheme shall be forwarded to the e-mail.