RBI permits NRIs to become nominees in savings bonds

Mumbai: The Reserve Bank of India has permitted non-resident Indians (NRIs) to become nominees in respect of the 6.5-per cent savings bond, 2003 (non-Taxable) or the 8 per cent savings bond (taxable).

The sole holder of the bond may nominate an NRI as his nominee in respect of interest and redemption value of the investment in the bonds and the nomination will be registered in the books of the bank or agencies, according to an RBI press release.

The normal regulations in regard to the foreign remittances as applicable to NRIs from time to time will continue to govern these cases also, the release said. At present, NRIs are not eligible to invest in these bonds nor can they be made nominees.