The Reserve Bank of India vide circular dated October 5, 2021 has issued guidelines for Value Free Transfer (VFT) of Government Securities. The Permission for VFT may be granted on a case-to-case basis by the Bank. Applications for the same may be submitted to Public Debt Office of RBI.
Eligible VFTs and permitted VFTs can be initiated through Core Banking System of RBI viz., e-Kuber. The VFTs so undertaken shall be subject to concurrent audit by SGL/CSGL holders on a 100% sampling basis. The auditor shall verify that the transactions comply with the guidelines and any deviations may be brought to notice of the Bank by the SGL/CSGL holders immediately.
