Banking--Notification

No. IDMD.CDD.S788/11.22.001/2021-22, dtd. 22-9-2021 [Advt.-III/4/Exty./292/2021-22]

Subsidiary General Ledger Account: Eligibility Criteria and Operational Guidelines

In exercise of the powers conferred by Section 4 of the Government Securities Act, 2006 (38 of 2006) (the Act), the Reserve Bank of India (the Bank) hereby specifies the conditions applicable henceforth for opening and maintenance of a Subsidiary General Ledger (SGL) account.

I. A Subsidiary General Ledger (SGL) Account shall mean an account opened and held with the Bank for holding or/and transacting in Government Securities.

II. The Bank may open and maintain SGL accounts for conduct of its operations and for such purposes the Bank may deem necessary.

III. Eligible Entities

The entities mentioned below are eligible to open and maintain an SGL account with the Bank:

i. Licensed Banks

ii. Primary Dealers authorised by Reserve Bank of India

iii. Financial institutions as defined in terms of Section 45-I (c) (ii) of the Reserve Bank of India Act, 1934 (2 of 1934)