Quick answerRBI has directed banks to stop opening multiple Bond Ledger Accounts (BLAs) for the same investor in Relief/Savings Bonds. Only one BLA per investor is allowed; existing multiple accounts must be merged into one.
What changed
RBI observed that some agency banks were opening a new Bond Ledger Account each time an existing investor made a fresh investment in Relief/Savings Bonds, violating the Memorandum of Procedure. The circular reiterates that only one BLA per investor is permitted and instructs banks to merge any existing multiple BLAs into a single account.
What it means for you
Banks must immediately stop the practice of creating separate BLAs for each new investment by the same investor. This will simplify record-keeping and reduce operational errors. Banks need to audit their current BLA records and consolidate any duplicate accounts to comply with the directive.
The rule, in the simplest words
Only one Bond Ledger Account (BLA) is allowed for each investor in Relief/Savings Bonds.
Banks must stop opening a new BLA every time the same investor makes a fresh investment.
If an investor already has more than one BLA, all those accounts must be merged into a single BLA.
Branches should audit their records to find any duplicate BLAs and combine them.
No new BLA should be created for an existing investor; use the existing single BLA instead.
How it plays out — a real example
Ramesh, a bond officer at a branch in Jaipur, receives a new investment from Mr. Sharma, who already has a BLA. Ramesh checks the branch ledger, sees that Mr. Sharma has two BLAs, merges them into one account, and records the new investment in that single BLA, following RBI’s rule.
What you must do
Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.
Conduct a review of existing Bond Ledger Accounts to identify any multiple BLAs in the name of the same investor.
Merge all identified multiple BLAs into a single BLA for each investor and update records accordingly.
Ensure that no new BLA is opened for an existing investor making a fresh investment; instead, use the existing BLA.
Who it affects
State Bank of India and Associate Banks, 17 Nationalized Banks, ICICI, IDBI, HDFC, UTI Bank, SHCIL (Stock Holding Corporation of India Limited), All designated branches handling Relief/Savings Bonds
What is a Bond Ledger Account (BLA)?
A BLA is the account opened in the name of an investor to record all investments in Relief/Savings Bonds. As per RBI rules, only one BLA is allowed per investor.
What should we do if we find multiple BLAs for the same investor?
You must merge all such BLAs into a single account for that investor. This consolidation should be done promptly to comply with RBI instructions.
Does this circular apply to new investments only?
No, it applies to both new investments and existing accounts. For new investments, use the existing BLA. For existing accounts, review and merge any multiple BLAs.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/350
Ref. DGBA.CDD No. H- 15318 / 13.01.299 / 2005 - 06
April 5, 2006
Chaitra 15, 1928 (Saka)
The General Manager
State Bank of India and Associate Banks
and 17 Nationalized Banks
The Managing Director
ICICI / IDBI / HDFC / UTI Bank and SHCIL
Dear Sir,
Operations in Relief/Savings Bonds – Opening of single Bond Ledger Account
As you are aware, in terms of Note (i) to Para 1.3 of Memorandum of Procedure, only one BLA shall be opened in the name of each investor. No new account or multiple accounts will be opened or maintained in the name of the same holder at the branch and investments subsequently made by him would be accounted for in the same Bond Ledger Account.
2. It has since come to our notice that some of the Agency banks are opening multiple Bond Ledger Accounts in the name of existing Bond Ledger Account holder, every time the investor makes fresh investment in the Relief / Savings Bonds Scheme. This is contrary to instructions contained in Memorandum of Procedure (MOP).
3. We, therefore, advise you to issue instructions to the designated branches to strictly adhere to the above instructions while accepting fresh investments as also review the existing multiple BLAs, if any, in the name of the same investor and merge all the BLA into one BLA.
4. Please acknowledge receipt.
Yours faithfully,
Sd/-
(D. Rajagopala Rao)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/350 · issued 05 Apr 2006. The plain-English explanation above is BankPulse’s own independent summary.
Test yourself
Quick self-check built only from the facts already on this page — tap a question to reveal the answer.
Q1. In one line, what does this circular do?
RBI has directed banks to stop opening multiple Bond Ledger Accounts (BLAs) for the same investor in Relief/Savings Bonds. Only one BLA per investor is allowed; existing multiple accounts must be merged into one.
Q2. Who does this circular apply to?
State Bank of India and Associate Banks, 17 Nationalized Banks, ICICI, IDBI, HDFC, UTI Bank, SHCIL (Stock Holding Corporation of India Limited), All designated branches handling Relief/Savings Bonds
Q3. What is the first thing you should do about it?
Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.
Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.
⚙️ Operations
Merge all identified multiple BLAs into a single BLA for each investor and update records accordingly.
📜 Compliance
Conduct a review of existing Bond Ledger Accounts to identify any multiple BLAs in the name of the same investor.
Ensure that no new BLA is opened for an existing investor making a fresh investment; instead, use the existing BLA.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (State Bank of India and Associate Banks, 17 Nationalized Banks, ICICI, IDBI, HDFC, UTI Bank, SHCIL (Stock Holding Corporation of India Limited), All designated branches handling Relief/Savings Bonds), your first concrete step on “RBI Cracks Down on Multiple Bond Ledger Accounts” is: “Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.” (RBI issued this 05 Apr 2006).
Circular: RBI/2005-06/350 -- RBI Cracks Down on Multiple Bond Ledger Accounts
Issued: 05 Apr 2006
Action required: Issue instructions to all designated branches to strictly adhere to the single BLA per investor rule for Relief/Savings Bonds.
Action required: Conduct a review of existing Bond Ledger Accounts to identify any multiple BLAs in the name of the same investor.
Action required: Merge all identified multiple BLAs into a single BLA for each investor and update records accordingly.
Action required: Ensure that no new BLA is opened for an existing investor making a fresh investment; instead, use the existing BLA.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
AI-drafted · 1-model AI consensus fact-check · under the editorial review of our expert review panel · decoded & published by BankPulse · 21 Jun 2026, 06:46 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2814&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert review panel. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.
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