What is SGL Full Form in Banking?

The full form of SGL in Banking is Subsidiary General Ledgers. These are the bank which is used for the purpose of holding or transacting government securities. It is up to the bank’s discretion to open Subsidiary General Ledgers for the purposes the bank may think it is required. In other words, Subsidiary General Ledgers are opened by the clearing corporations with public debt office under RBI. The Government Security Act of 2006 gives more guidelines around Subsidiary General Ledgers in India.

What Else Should We Know About SGL?

There are many strict guidelines and audits around opening and maintaining Subsidiary General Ledgers. The bank has the authority to ask the Subsidiary General Ledgers holder for forms and certain proofs from time to time. In addition, any misuse of Subsidiary General Ledgers can also lead to a ban on the entity. Along with the Subsidiary General Ledgers, you may get Value Free Transfer service where securities can be transferred from one SGL to another SGL without any fee. There are also many prescriptions and rules around the Value Free Transfer (VFT).