Saturday, February 25, 2017

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016

Eligibility for Deposits.— The deposits shall be made from the 17th December, 2016 till 31st March, 2017, by any person who declared undisclosed income.

Form of the deposits.— The deposits shall be held in Bonds with RBI for which a certificate of holding shall be issued. The deposit shall be transferred into the designated Reserve Fund in the Public account of the Government of India.

Authorised banks.
(a) Application shall be received by any banking company.
(b)The Bank shall electronically furnish the details of deposit to the Department of Revenue, Ministry of Finance, by the next working day.
(c) The bank shall upload the details of deposit into RBI’s Core Banking Solution ‘e-Kuber’.
(d) The RBI and Bank shall maintain confidentiality.

Subscription and Mode of investment in the Bonds Ledger Account.
(a) The deposits shall be accepted at all Authorised Banks .
(b) The deposits shall be made in multiples of Rs.100/-.
(c) The deposit shall not be less than 25% of the undisclosed income declared.
(d)The entire deposit shall be made, on one or more occasions, before filing declaration under sub-section (1) of section 199C ibid. * amendment dt 7/2/17
(e)The deposit shall be made in the form of cash or draft or cheque or by electronic transfer.

Effective date of deposit.— The effective date of opening of Account shall be the date of receipt of cash or realisation of draft/cheque or transfer through electronic transfer.

(a) An application for the deposit shall be made clearly indicating the amount, full name, PAN, Bank Account details, and address. If the declarant does not hold a PAN, he shall apply for it and provide the details of the application along with acknowledgement number.
(b) The application shall be accompanied by an amount which shall not be less than 25% of the undisclosed income.

(a)      A sole holder may nominate, one or more persons who shall be entitled to the deposit in the event of his death.
(b)                     Where either or any of the nominees dies before the payment becomes due, the title to the deposit shall vest in the surviving nominee or nominees.
(c)                      A nomination may be varied by a fresh nomination, or may be cancelled by the holder.
(d)                     Every nomination shall be registered at the RBI and shall be effective from the date of such registration.
(e)                      If the nominee is a minor, the holder may appoint any person to receive the amount due in the event of his death.

Transferability.— The transferability shall be limited to nominee or to the legal heir, in the event of his death.

Interest.— The deposits shall not bear any interest.

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

Repayment.— The Account shall be repayable four years after the deposit and no premature payment shall be allowed.

Based on RBI Circular dated 16/12/2016. For any further clarifications please refer