GOVERNMENT SAVINGS BANKS ACT, 1873

5 of 1873

28th January, 1873

An Act to amend the law relating to Government Savings Banks. Preamble. WHEREAS it is expedient to amend the law relating to the payment of deposits in Government Savings Banks; It is hereby enacted as follows: The Act has been extended to the new Provinces and Merged State by the Merged-States (Laws) Act, 1949(49 of 1949),Section 3(1-1-1950) and to the Union territories of Manipur and Triputa and Vindhya Pradesh by the UnionTerritories (Laws) Act, 1950(30 of 1950),S. 3(16-4-1950). Manipur and Tripura are States now (see Act 81 of 1971) but Vindhya Pradesh now forms part of M.P. State.-See Act 37 of 1956 S. 9(i)(e). The Act has been declared to be in force in Santhal Parganas (now in Bihar State) see Santhal Parganas,Settlement Regulation, 1872(3 of 1872), S. 3; Khondmals District, (now in Orissa State) seeKhondmals Laws Regulation, 1936(4 of 1936), S. 3 and Sch.; Angul District, seeAngul Laws Regulation, 19365 of 1936),(S. 3 and Sch. This Regulation has now been repealed by Orissa Act 19 of 1967, S. 2 and Angul District is a sub-division of Dhankanal District. It has been declared, by notification under the ScheduledDistricts Act, 1874(14 of 1874), S. 3(a) to be in force in the following Scheduled Districts:- the Districts of Hazaribagh, Lohardaga, and Manbhum and Pargana Dhalbhum and the Kolhan in the District of Singbhum, see Gaz. of Ind., 1881, Pt. I, p. 504. The District of Lohardaga (now called thge Ranchi District, see Cal. Gax. 1899, Pt, I, page 44) included at this time the District of Palamau separated in 1894, All these districts now form part of the State of Bihar. The Act was extended to the Union territory of Himachal Pradesh by H.P. A.L.O., 1948. H.P. is a 'State' from 25-1-1971-See Act 53 of 1970. The Act has now been extended to the Union territories of- (1) Dadra and Nagar Haveli by Regn. 6 of 1963 (1-7-1965); (2) Pondicherry by Regn. 7 of 1963 (1-10-1963); (3) Laccadive, Minicoy and Amindivi Islands (Now called Lakshdweep) by Regn. 8 of 1965 (1-10-1967). The Act has been extended to the Union territory of Goa, Daman and Diu and enforced therein on and from 1-9-1962-See S.O. 2734 published in Gaz. of Ind., 1-9-1962, Pt. II, S. 3(ii). Extra., p. 1991. The Act has been brought into force from 11-3-1992 in the State of Sikkim-See Gaz. of Ind., 11-3-92, Pt. II, S. 3(ii), Ext., p. 2 (No. 184).

PRELIMINARY

SECTION 01: SHORT TITLE

This Act may be called the Government Savings Banks Act, 1873. Local extent. It extends 1 to 2 [the whole of India 3 [* * *].]

SECTION 02: ACT NOT TO APPLY TO DEPOSITS IN ANCHAL SAVINGS BANK

This Act shall not apply to any deposits made in the Anchal Savings Bank of the State of Travancore-Cochin, and, notwithstanding anything contained in this Act, any law in force in the said State immediately before the commencement of the Part B States (Laws) Act, 1951 , relating to such deposits, shall continue to apply thereto as if that law had not been repealed.]

SECTION 03: INTERPRETATION CLAUSE

In this Act- "depositor" means a person by whom, or on whose behalf, money has been heretofore, or shall be hereafter, deposited in a Government Savings Bank and "deposit" means money so "deposited": 5 ["Secretary" means in the case of a Post Office Savings Bank the Postmaster- General appointed for the area in which the Saving Bank is situate], 6 [or if that area is in Pakistan, by the Postmaster-General for such area in India as the Central Government may by general or special order specify in this behalf]: 7 ["minor" means a person who is not deemed to have attained his majority under the Indian Majority Act, 1875 ]: 8 ["prescribed" means prescribed by rules made under this Act.]

SECTION 04: NOMINATION BY DEPOSITOR

(1) Notwithstanding anything contained in any law for the time being in force, or in any disposition, whether testamentary or otherwise, by a depositor in respect of his deposit, where any nomination made in the prescribed manner purports to confer on any person the right to receive the deposit on the death of the depositor, the nomionee shall, on the death of the depositor become entitled, to the exclusion of all other persons to be paid the deposit, unless the nomination is varied or cancelled in the prescribed manner.

(2) Any nomination referred to in sub-section (1) shall become void if the nominee predeceases, or where there are two or more nominees, all the nominees predecease, the depositor.

(3) Where the nomineee is a minor it shall be lawful for the depositor to appoint in the prescribed manner any person to receive the deposit in the event of his death during the minority of the nominee.]

SECTION 04A: PAYMENT ON DEATH OF DEPOSITOR

(1) If a depositor dies and there is in force at the time of the death of the depositor a nomination in favour of any person, the deposit shall be paid to the nominee.

(2) Where the nominee is a minor, the deposit shall be paid-

(a) in any case where a person has been appointed to receive it under subsection (3) of section 4- , to that person; and

(b) where there is no such person, to the guardian of the minor for the use of the minor. .

(3) Where a deposit is payable to two or more nominees and either or any of them is dead, the deposit shall be paid to the surviving nominee or nominees.

(4) If a depositor dies and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 , is not within three months of the death of the depositor produced to the Secretary of the Government Saving Bank in which the deposit is, then-

(a) if the deposit does not exceed 11 [such limit as may be prescribed], the Secretary may pay the same to any person appearing to him to be entitled to receive it or to administer the estate of the deceased; and

(b) within the 12 [limit prescribed under clause (a)], any officer employed in the management of a Government Savings Bank who is empowered in this behalf by a general or special order of the Central Government may, to the extent to which he is empowered by such order and subject to any general or

special orders of the Secretary in this behalf, pay the deposit to any person appearing to him to be entitled to receive it or to administer the estate.

(5) Nothing contained in this section shall be deemed to require any person to accept payment of a deposit, which is a time deposit, before it has become due.]

OBJECTS AND REASONS "Under Section 4 - of the Government Savings Banks Act, 1873 deposits in a Government Savings Bank belonging to the estate of a deceased person are payable to his legal heirs on production of probate of his will or letters-of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 ; but if the deposit does not exceed Rs. 5,000 and any of the documents referred to above is not produced within a period of three months of the death of the depositor, payment can be paid by the postal authorities to any person appearing to them to be entitled to receive it or to administer the estate of the deceased. 2. Suggestions have been made from time to time that, as the production of legal proof of succession involves considerable delay and expense, the depositors may be allowed the right to nominate a person or persons to receive the amounts due to the deceased depositors without the production of legal documents. This Bill, accordingly, seeks to allow nomination facilities to the depositors in the Government Savings Bank by amending the Savings Banks Act, 1873 "- S.O.R., Gaz. of Ind., 1959, Extra, Pt. II, Section 2 - , page 865.

SECTION 05: PAYMENT TO BE A DISCHARGE

13 [Any payment made in accordance with the foregoing provisions of this Act] shall be a full discharge from all further liability in respect of the money so paid: Savings of right of executor. But nothing herein contained precludes any executor, or other representative of the deceased, from recovering from the person receiving the same the amount remaining in his hands after deducting the amount of all debts or other demands lawfully paid or discharged by him in due course of administration. Savings of right of creditor. And any creditor or claimant against the estate of the deceased may recover his debt or claim out of the money paid under this Act, 14 [* * * * * * * * * *] to any person, and remaining in his hands unadministered, in the same manner and to the same extent as if the latter had obtained letters of administration of the estate of the deceased.

SECTION 06: SECURITY FOR DUE ADMINISTRATION

The Secretary of any such Bank 15 [or any officer empowered 16 [under sub-section (4) of section 4A - ]] may take such security as he thinks necessary from any person 17 [to whom he pays any money under sub-section (4) of section 4A - ] for the due administration of the money so paid, and he may assign the said security to any person interested in such administration.

SECTION 07: POWER TO ADMINISTER OATH

For the purpose of ascertaining the right of the person claiming to be entitled as aforesaid, the Secretary of any such Bank 18 [or any officer empowered 19 [under sub-section (4) of section 4A - ]] may take evidence on oath or affirmation according to the law for the time being relating to oaths and affirmations. Penalty for false statements. Any person who, upon such oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall be deemed guilty of an offence under section 194 of the Indian Penal Code –

SECTION 08: DEPOSIT WHEN EXCLUDED IN COMPUTING COURT-FEES

Where the amount of the deposit belonging to the estate of a deceased depositor does not exceed 20 [three thousand rupees,] such amount shall be excluded in computing the fee chargeable, under the Court-fees Act, 1870 , on the probate, or letters of administration, or certificate (if any), granted in respect of his property: Provided that the person claiming such probate or letters or certificate shall exhibit to the Court authorized to grant the same a certificate of the amount of the deposit in any Government Savings Bank belonging to the estate of the deceased. Such certificate shall be signed by the Secretary of such Bank, and the Court shall receive it as evidence of the said amount.

SECTION 09: ACT NOT TO APPLY TO DEPOSITS BELONGING TO ESTATES OF EUROPEAN SOLDIERS OR DESERTERS

[Omitted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), Section 7 - (18-3-1959).]

SECTION 10: PAYMENT OF DEPOSITS TO MINOR OR GUARDIAN

Any deposit made by, or on behalf of, any minor, may be paid to him personally, if he made deposit, or to his guardian for his use, if the deposit was made by any person other than the minor, together with the interest accrued thereon. The reeceipt of any minor or guardian, for money paid to him under this section, shall be a sufficient discharge therefor.

SECTION 11: LEGALIZATION OF LIKE PAYMENTS HERETOFORE MADE

[Omitted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 7 (18-9-1959).]

SECTION 12: PAYMENT OF DEPOSITS BELONGING TO LUNATICS

If any depositor becomes insane or otherwise incapable of managing his affairs, and if such insanity or incapacity is proved to the satisfaction of the Secretary of the Bank in which his deposit may be, such Secretary may, from time to time, make payments out of the deposit to any proper person, and the receipt of such person, for money paid under this section, shall be a sufficient discharge therefor. Where a committee or manager of the depositor's estate has been duly appointed, nothing in this section authorizes payments to any person other than such committee or manager.

SECTION 13: PAYMENT OF MARRIED WOMEN'S DEPOSITS

Any deposit made by or on behalf of a married woman, or by or on behalf of a woman who afterwards marries, may be paid to her, whether or not 21 [ section 20 of the Indian Succession Act, 1925 ] applies to her marriage; and her receipt for money paid to her under this section shall be a sufficient discharge therefor.

SECTION 14: PROTECTION OF ACTION TAKEN IN GOOD FAITH

No suit or other legal proceeding shall lie against the Secretary or any other officer of the Government in respect of anything which is in good faith done or intended to be done under this Act.]

SECTION 15: POWER TO MAKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules' for carrying out the. purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the persons by whom and the terms and conditions subject to which deposits may be made in a Government Savings Bank;

(b) the maximum limits of deposits and the conditions as to interest or discount relating to deposits generally, or any class of deposits in particular;

(c) the non-accrual of interest on deposits when the maximum limits are exceeded and the recovery of any interest paid in excess in the same manner as an arrear of land revenue or in any other manner;

(d) the persons to whom and the manner in which deposits may be paid;

(e) the form of nominations, the manner in which, the persons in whose favour and the conditions and restrictions subject to which, nominations may be made and the registration of nominations;

(f) the variation or cancellation of nominations;

(g) the fees that may be levied for registration of nominations and for variation or cancellation thereof;

(h) the manner in which any person may be appointed for the purpose of sub-section (3) of section 4- .

25 [(i) the limit under clause (a) of sub-section (4) of section 4A- .]

(3) Every rule made under this section shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.] Footnotes:

1. Substituted for "all the provinces of India" by A.L.O., 1950.

2. Words "except the State of Jammu and Kashmir" were omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956), Section 2 and Sch. (1-11-1956).

3. Commencement clause was repealed by the Repealing Act, 1874 (14 of 1874), Section I and Sch,, Pt. 1.

5. Substituted for the original definition by the Government Savings Bank (Amendment) Act, 1923 (16 of 1923), Section 2.

6. Inserted by A.C.A.O.,the Government Savings Bank (Amendment) Act, 1923 (16 of 1923), Section 2, 1948.

7. Substituted for the original definition by the Amending Act, 1916 (13 of 1916), section 2 Sch.

8. Inserted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), section 2 (18-9-1959).

11. Substituted for the words "five thousand rupees" by Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).

12. Substituted for the words "aforesaid limit of five thousand rupees;Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).

13. Substituted for the words "such payment", by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 4 (18-9-1959).

14. Words "or Act No. 26 of 1855" were omitted,the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 4 (18-9-1959).

15. Inserted by the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), Section 4.

16. Substituted for "under Section 4", 1959 (45 of 1959), Section 5.

17. Substituted for "to whom he pays any money under Section 4",the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), Section 4.

18. Inserted by the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), S. 4.

19. Substituted for the words "under Section 4" 1959 (45 of 1959), S. 6 (18-9-1959).

20. Substitutedfor "one thousand rupees", by the Government Savings Banks (Amendment) Act, 1917(17 of 1917), Section 2.

21. Substituted for "the Indian Succession Act, 1865, Section 4", by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 8 (18-9-1959).

25. Inserted by the Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).

26. For Post Office Savings Banks Rules, 1965, made under this section, see Gaz. of Ind., 25-1-1965, Pt. II, Section 3(i), Ext., page 35. (Amended by G. S. R. 495 of 1965, dated 25-3-1965). Rules in force before the commencement of these rules, i.e. 1-3-1965, and the Post Office Savings Banks (Nomination) Rules, 1960 are repealed by these Rules. National Savings Scheme Rules, 1987-See Gaz. of Ind., 3-3-1987, Pt. II, S. 3(i), Ext., p. 2 (No. 51), GSR 335 (E/87).

POST OFFICE (MONTHLY INCOME ACCOUNT) RULES, 1987

In exercise of the powers conferred by

Section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makel the following rules, namely –

RULE 1 SHORT TITLE AND COMMENCEMENT

1) These rules may be called the Post Office (Monthly Income Account) Rules, 1987.

(2) They shall come into force on the 15th day of August, 1987.

2 Provided that no such deduction shall be made if the account is losed after expiry of three years from the date of opening of such Account.

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires,-

(a) 'account' means a savings account opened by a depositor in accordance with the provisions of these rules;

(b) 'Act' means the Government Savings Bank Act, 1873 (5 of 1873) ;

(c) 'depositor' means a person by whom, or on whose behalf, money is deposited under these rules in an account and "deposit" means the money so deposited ;

(d) 'post office' means any post office in India doing savings bank work and authorised to open an account under these rules ;

(e) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981 shall have the meanings respectively assigned to them in those rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981 AND THE POST OFFICE SAVINGS ACCOUNT RULES, 1987

-The provisions of the Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules, 1987, as may be, apply in relation to matters for which no provision has been made in these rules.

RULE 4 OPENING OF ACCOUNTS

aaaaa A depositor may operate more than one account under these rules subject to the condition that deposits in all accounts taken together shall not exceed rupees three lakhs in case of single account and rupees six lakhs in case of joint account."; xxxxa "Note.—For the purpose of maximum balance, the depositors share in the balance of a joint account shall be taken as one-half or one-third of such balance according to the account is held by two adults or three adults."

RULE 5 DEPOSITS AND WITHDRAWALS

aaaab aaaac "(1) There shall be only one deposit in the account in the multiple of one thousand rupees not exceeding rupees three lakhs in case of single account and rupees six lakhs in case of joint account."

(2) Except as provided in Rule 10 , no withdrawal shall be permitted under these rules before the expiry of a period of six years from the date of opening of an account.

RULE 6 MODE OF DEPOSIT

(1) The deposit under these rules may be made:

(a) in cash, or

(b) by cheque or demand draft drawn in favour of depositor or the postmaster of the post office and endorsed in favour the post- master.

(2) Where deposit is made by cheque or demand draft, the date of deposit under these rules shall be the date of encashment of the cheque or the demand draft.

RULE 7 NOMINATION

(1) The depositor may at the time of opening the account under these rules, nominate a person or persons who, in the event of death of the depositor, shall become entitled to payment of amount due on the account.

(2) If such nomination is not made at the time of opening the account, it may be made by the depositor at any time after che opening of the account but before its closure by means of an application, accompanied by the pass book to the postmaster of the Post Office.

RULE 8 INTEREST ON DEPOSIT

1 "(1) The deposit made under these rules shall bear interest at the rate of-

(a) 12 per cent per annum in respect of deposits made on or after the 15th day of August, 1987 but before the 24th day of April, 1992;

(b) 14 per cent per annum in respect of deposits made on or after the 24th day of April, 1992 but before the 2nd day of September, 1993;

(c) 13 per cent per annum in respect of deposits made on or after the 2nd day of September, 1993 but before the 1st day of January, 1999;

(d) 12 per cent per annum in respect of deposits made on or after the 1st day of January, 1999 but before the 15th day of January, 2000;

(e) 11 per cent per annum in respect of deposits made on or after the 15th day of January, 2000 but before the 1st day of March, 2001;

(f) 9.5 per cent per annum in respect of deposits made on or after 2 [the 1st day of March, 2001 but before the 1st day of March, 2002].

3 (g) 9 per cent per annum in respect of deposits made on or after the 1st day of March, 2002.

(2) The interest shall be payable monthly to the depositor on completion of a month from the date of deposit.

(3) If so authorised, interest payable monthly shall be deposited by the post office in the savings account of the depositor held at the post office where deposit is held subject to the condition that by so depositing the interest, maximum limit on balances in savings account is not exceeded.

(4) If the interest payable every mo^th is not claimed by a depositor, such interest will not earn any additional interest.

12 "(5) Interest shall be rounded off to nearest multiple of rupee one and for this purpose any amount of 50 paise or more shall be treated as rupee one and any amount less than 50 paise shall be ignored."

14 (6) A Post Office shall, as soon as it comes to the notice that a deposit made under Rule 4 by a subscriber exceeds the prescribed ceilings specified therein, such Post Office shall request the subscriber to withdraw the excess deposit immediately.

Explanation.—"Post Office" means and includes a Head or Sub-Post Office.

14 (7) The excess amount referred to in sub-rule (6) shall carry an interest at the rate applicable from time to time to the Post Office Savings Account and shall be payable to such subscriber on such amount.

14 (8) The interest referred to in sub-rule (7) shall be admissible from the date of deposit of the excess amount till the end of the month preceding the month in which the subscriber has been requested to withdraw such excess amount in the account.

RULE 9 CLOSURE OF ACCOUNT

(1) The deposit made at the time of opening of account shall be paid by the post office at which the account stands to the depositor on or after expiry of six years from the date of the opening along with bonus equal to 10 per cent of the amount deposited-on production of the pass book accompanied by a written application.

(2) In case of death of a depositor before maturity, account may be closed and deposit refunded along with interest upto the month preceding the month in which refund is made.

RULE 9A POST-MATURITY INTEREST

4 —Where repayment of a deposit, inclusive of bonus, under Rule 9 has become due but has not been ma de, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions, namely :—

(a) The interest shall be simple and shall be calculated at the rate applicable from time to time to savings accounts of the type of single or joint account.

(b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.

(c) The interest shall be paid to the depositor in lump sum at the time of repayment of amount due.

RULE 10 PREMATURE CLOSURE OF ACCOUNT

(1) Notwithstanding anything contained in sub-rule (2) of Rule 5 , on an application made by the depositor In this regard, he may be permitted to withdraw the deposit and close the account any time after expiry of a period of one year from the date of opening such account, subject to fhe condition that an amount equal to 5 [3.50 per cent ] of the deposit shall be deducted and remainder paid to him.

RULE 11 PASS BOOK

(1) 0n opening an account, the depositor shall be [iven a pass book bearing the date of opening of account, the number of his pcount his name and address and the amount deposited and also the jionthly interest payafcfe alongwith the date on which the deposit will be final payment.

POST OFFICE SAVINGS BANK GENERAL RULES, 1981

17th December, 1981

G.S.R. 662(E).—In exercise of the powers conferred by

Section 15 of the Government Savings Banks Act, 1873(5 of 1873) the Central Government hereby makes the following rules, namely.—

RULE 1 SHORT TITLE, APPLICATION AND COMMENCEMENT

(1) These rules may be called the Post Office Savings Bank General Rules, 1981.

(2) They shall be applicable to the following accounts in the Post Office Savings Bank, namely :—

(a) Savings Account.

(b) Cumulative Time Deposit Account. (c) Recurring Deposit Account. (d) Time Deposit Account.

(3) They shall come into force on the 1st day of April 1982

RULE 2 DEFINITIONS

—In these rules, unless the context otherwise requires.—

(a) "account" means a Savings Account, a Cumulative Time Deposit Account, a Recurring Deposit Account count or a Time Deposit Account;

(b) "authorised" means authorised by the Director General, Posts and Telegraphs;

(c) "balance" means the balance at credit of an account:

(d) "Branch Savings Bank" means a Branch Post Office which is functioning also as a Savings Bank;

(e) "Cumulative Time Deposit Account" means an account opened under the Post Office Savings Bank (Cumulative Time Deposit) Rules, 1959 or under the Post Office Cumulative Time Deposit Rules, 1981;

(f) "Extra Departmental Sub Savings Bank" means a Sub Savings Bank in charge of a part-time employee;

(g) "Form" means a form appended to these rules;

(h) "guardian" in relation to a minor or a person or unsound mind means —

(i) either father or mother ; and

(ii) where neither parent is alive or is capable of acting, a person entitled under

the law for the time being in force to have the care of the property of the minor, or as the case may be, the person of unsound mind ;

(i) "Head Postmaster" means an officer in charge of a Head Saving Bank and includes a Deputy Postmaster or a" Assistant Postmaster to whom the powers of the Head Postmaster have been delegated;

(j) "Head Saving Bank" means a Head Post Office which is functioning also a Savings Bank but does not include a Head Post Office declared by the Director General, Posts and Telegraphs to be Sub Savings Bank:

(k) "joint account" means an account opened by two adults or three adults, as the case may be, in their names;

(l) "Post Office Savings Bank" means a Head Savings Bank and includes a Sub or Branch Savings Bank:

(m) "prescribed" means prescribed by the Director General, Posts and Telegraphs;

(n) "Recurring Deposit Account" means an account opened under the Post Office (Recurring Deposits) Rules, 1970 or under the Post Office Recurring Deposit Rules, 1981 ;

(o) "Relevant Head Savings Bank", in relation to an account, means the Head Savings Bank in which the account stands or to which the Savings Bank where the account stands, is subordinate ;

(p) "relevant rule" means a rule under these rules, the Post Office Savings Account Rules, 1981, the Post Office Time Deposit Rules, 1981, the Post Office Recurring Deposit Rules, 1981 or the Post Office Cumulative Time Deposit Rules, 1981;

(q) "relevant Sub Savings Bank", in relation to an account, means the Sub Savings Bank in which the account stands or to which the Savings Bank where the account stands is subordinate;

(r) "Savings Account" means an account opened under the Post Office Savings Bank Rules, 1881, on under the Post Office Savings Banks Rules. 1965, or under the Post Office Savings Account Rules 1981;

(s) "Savings Certificate" means a certificate issued under the Government Savings Certificates Act 1959 (46 of 1959);

(t) "single account" means an account opened by or on behalf of an individual person in his name:

(u) "Sub Savings Bank" means a Sub-Post Office which is functioning also as a Savings Bank and includes a Head Post Office declared by the Director for General to be a Sub Savings Banks, but does not include an Extra-Departmental Sub Savings Bank;

(v) "Time Deposit Account" means an account opened under Post Office (Time Deposits) Rules 1970 or under the Post Office Time Deposit Rules, 1981.

RULE 3 OPENING OF AN ACCOUNT

(1)A depositor desiring to open an account in a Post Office Savings Bank may make an application to it in Form 1.

"(2) Non-Resident Indians (NRIs) are not eligible to open an account in a Post Office Savings Bank : Provided that if a resident who opened an account in any Post Office Savings Bank, subsequently becomes Non-Resident Indian during the currency of maturity period, may continue such account till its maturity on a Non-Repatriation Basis.".

RULE 4 PLACE OF DEPOSIT

(1) In the case of an account standing at a Head Savings Bank a deposit may be made at the Head Savings Bank or at any of its Sub Savings Banks.

(2) In the case of an account standing at a Sub Saving deposit may be made at the Sub Saving Bank or at the relevant Head Savings Bank or at any of it Sub- Savings Banks.

aab (3)In the case of an account standing at an Extra Departmental Sub-Savings Bank, a deposit may be made at the Extra Departmental Sub-Savings Bank or at the relevant Head Savings Bank ;

aaa (4) In the case of an account standing at a Branch Savings Bank, a deposit may be made at the Branch Savings Bank or at the relevant Head Savings Bank or relevant Sub Savings Bank.

RULE 5 MODE OF DEPOSIT

3 (1) Deposit in a Post Office Savings Bank may be made (i) in cash (ii) by cheque or a demand draft drawn in favour of the depositor or the Postmaster and crossed generally or specially in fovour of the Post Office Savings Bank, or (iii) by surrender of Savings Stamps or Indian Postal Orders or Postal Orders issued by British authorities, and deposit in Head Savings Bank and Sub-Saving Bank may also be made by means of:-

(a) a pay order ;

(b) an income tax refund voucher or income tax refund order ;

(c) an interest warrant issued by the Reserve Bank of India or a Defence Deposit Certificate or instalments of an Annuity Certificate;

(d) withdrawal or discharge of any amount payable on an account or saving certificate held by the depositor;

(2) Each deposit shall be accompanied by a pay-in-slip in the manner prescribed and the counterfoil of the pay-in-slip shall be returned to the tenderer duly receipted.

(3) Except as specified in the Post Office Cumulative Time Deposit Rules, 1981 and the Post Office Recurring Deposit Rules. 1981, the date of credit in an account of money deposited by cheque or other instrument shall be the date of its encashment and not the date of its presentation tation

(4) Where a deposit is made by means of an outstation cheque or instrument, collection charges at the prescribed rate shall be payable along with the deposit.

RULE 6 WITHDRAWAL

(1) Withdrawal from an account at 4 ["a Sub-Savings Bank, an Extra-Departmental Sub-Savings Bank or a Branch Savings Bank"]is subject to the availability of funds.

(2) No withdrawl except to the extent of the amount prescribed shall be allowed from an Extra Departmental Sub Savings Bank or a Branch Savings Bank without prior sanction of the relevant Head Savings Bank or the relevant Sub Savings Bank, as the case may be.

(3) In the case of an account standing at an Extra Departmental sub Savings Bank or a Branch Savings Bank, withdrawl may also be made from the relevant Head Savings Bank or the relevant Sub Savings Bank to the extent of the amount actually credited to the account in such Head or Sub Savings Bank.

(4) In the case of an account opened on behalf of a minor a person of unsound mind. a withdrawal during the minority or lunacy of the depositor shall be permitted on—

(a) the guardian, or

(b) where the person of unsound mind is confined in a mental hospital, the superintendent of such furnishing a certificate in the following form :— "Certified that the amount sought to be withdrawn is required for the use of Shri/Smt./Km- who is a minor/a person of unsound mind and is alive this day".

RULE 7 IDENTIFICATION OF THE DEPOSITOR

Identification of a depositor at the time of withdrawal under rule 6 shall ordinarily be made by verification of his signature appearing on the instrument of withdrawal with his specimen signature kept on record in the Post Office Savings Bank and in cases where identification cannot be done as aforesaid. it may be done on the basis of identity card. if any, issued to him by the Post Office or in such other manner as may be

RULE 8 PASS BOOK

(1) On opening an account, the depositor shall be given a pass book bearing the number of his account, his name, occupation or profession, address and entry of his first deposit duly initialled by an authorised official of the post office Savings Bank.

(2) It shall be the responsibility of the depositor to keep the pass book in safe custody.

(3) If the pass book is lost, stolen, destroyed or spoilt while in custody of the depositor, he shall be issued a duplicate pass book on his paying a fee of 2 ["ten rupees"] and on completion of such enquiries as the Post Office Savings Bank may consider necessary and no such fee shall be charged if the Head Postmaster is satisfied that the circumstances in which tile pass book was lost, stolen, destroyed or spoilt were beyond the control of the depositor.

(4) The pass book shall ordinarily be presented for all withdrawals and deposits, other than those made by a cheque, and in cases where a deposit or withdrawal is made without production of the pass book, the pass book shall be presented to the Post Office Savings Bank as soon as possible thereafter for bringing it uptodate.

(5) When the pass book is returned duly completed, the depositor shall bring the errors or omissions therein, if any, to the notice of the Post Office Savings Bank forthwith and in the event of the depositor's failure to do so, the Post Office Savings Bank shall not be responsible for any loss arising from such errors or omissions.

(6) The pass book shall, as far as possible, be collected from the Post Office Savings Bank by the depositor on the same day on which it is presented to it under sub-rule (4) and where, for any reason, the pass book cannot be returned on the same day, the Post Office Savings Bank shall issue a receipt in lieu thereof and such receipt shall be surrendered by the depositor at the time of collecting the pass book on a subsequent date.

(7) The Post Office Savings Bank shall not be responsible for any entries in the pass book not authenticated under the initials of its authorised official.

RULE 9 TRANSFER OF AN ACCOUNT

—A depositor may have his account transferred from one Post Office Savings Bank to another Post Office Savings Bank free of charge by making an application in the prescribed form subject to such conditions as may be prescribed.

RULE 10 CONVERSION OF AN ACCOUNT

—Subject to the provisions of the relevant rules relating to an account, or a written application being made by its holder or holders, as the case may be—

(1) a single account in the name of an adult may be converted into a joint account in the name of the original depositor and another adult and a joint account in the names of two depositors may be converted into a single account in the name of one of the joint depositors.

(2) in the case of a savings account,—

(i) a joint account in the names of three adults may be converted into a single account in the name of one of the depositors or into a joint account in the names of two adults including at least one of the original depositors;

(ii) a joint account in the names of two adults may be converted into a joint account in the names of three adults, including at least one of the original depositors ; and

(iii) a single account in the name of an adult may be converted into a joint account in the names of three adults including the original depositor.

RULE 11 FINAL WITHDRAWAL ON CLOSURE.

3 Except as otherwise provided in the relevant rules, final withdrawal on closure of an account shall be allowed at the Post Offices authorised by the Director General (Posts).

RULE 12 NOMINATION

(1) Subject to the provisions of sub-rules (2) to (7), an adult opening single account or two adults or three adults opening a joint account, may by furnishing the necessary particulars in Form 1 at the time of opening the account, nominate any person or persons who in the event of death of the depositor or all the depositors, as the case may be, shall become entitled to payment of the amount due on the account and if such nomination is not made at the time of opening the account, it may be made by the depositor of a single account" or by the depositors or the surviving depositor or depositors of a joint account, at any time after the opening of the account but before its closure, by means of an application in Form 2, accompanied by the pass book, to the Post Office Savings Bank where the account stands.

(2) No nomination shall be made in respect of an account opened or to be opened by or on behalf of a minor or a person of unsound mind.

(3) A nomination made under sub-rule (1) may be cancelled or varied by the depositor of a single account or by the depositors or the surviving depositor or depositors of a joint account, by submitting an application in Form 2, affixing postage stamps of the value of one rupee to it, together with the pass book to the Post Office Savings Bank where the account stands or to the relevant Head Savings

(4) The nomination or the cancellation or variation of a nomination shall be registered in the relevant Head Savings ' Bank and the fact of registration shall be noted in the pass book and on such registration, the nomination or cancellation or variation of nomination, as the case may be, shall be deemed to be effective from the date on which it was presented.

(5) A nomination shall become void if the nominee predeceases, or where there are two or more nominees, all the nominees predecease, the depositor.

(6) Where any nominee is a minor, the depositor or depositors making the nomination may, by furnishing the necessary particulars in Form 1 or Form 2, as the case may be, appoint the person to receive payment of the amount due on the account in the event of death of the depositor or depositors, as the case may be, during the minority of the nominee.

(7) Where an account is held by or on behalf, of any person as a pledgee or by way of security for any purpose such holding shall not have the effect of cancelling a nomination but the right of the nominee or nominees shall be subject to the right of the person so holding the account. Explanation.—In this rule and in rule 13, "single account" includes a pension account and a security deposit account and "joint account" includes a security deposit account

RULE 13 PAYMENT ON DEATH OF DEPOSITOR

(1) In the event of death of the depositor of a single account or of all the depositors of a joint account, the amount due on the account shall be

payable as specified in 11 ["sub-rules (1) to (4)"].

(2) (a) If a nomination made under rule 12 is in force at the time of death of the depositor of a single account or the surviving depositor in the case of a joint account, the nominee or nominees surviving such depositor an application in the manner prescribed to the relevant Head Savings Bank for payment of the amount due on the account and such application shall be accompanied by proof of death, of the depositor or depositors, as the case may be, and, where

any other nominee has predeceased the depositor,by proof of death of such nominee,

(b) If there is only one surviving nominee, the amount due on the account shall on his making an application as aforesaid, be payable to him.

(c) If there are two or more surviving nominee, the application as aforesaid may either be made by them jointly in which case the amount due on the account shall be payable to them jointly, or be made by each one of them

separately in which case each such nominee applicant shall be entitled to receive an equal share of the amount due on the account.

(3) Where the surviving nominee is a minor, the payment under sub-rule (2) shall be made to the person appointed under sub-rule (6) of rule 12 to receive such payment and, if there is no such person, to the guardian of the minor.

(4) (a) If there is no nomination made under rule 12 which force at the time of death of the depositor of a single account or of the surviving depositor in the case of a joint account, the legal heir of such depositor may at any time make an application in the manner prescribed to the relevant Head Savings Bank for payment of the amount due on the account and such application shall be accompanied by a certificate under the Indian Succession Act, 1925 (39 of 25) or a probate of will or a letter of administra tion in support of claim to legal heirship of the applicant.

(b) The Head Postmaster, after verification of the authenticity documents produced, may make payment of the amount on the account to the applicant.

RULE 14 PAYMENT OF AMOUNT AT CREDIT IN AN ACCOUNT HELD BY ARMY, AIR FORCE AND NAVY PERSONNEL

—Notwithstanding any- thing contained in rules 12 and 13 , where an account holder serving in the Army, Air Force or Navy, dies or deserts, the Commanding Officer of the Corps, department, detachment, unit or ship to which the account holder belonged, or the Comittee of Adjustment, as the case may be, may send a requisition to the officer incharge of the Post Office Savings Bank where the account stands for payment of the amount due on the account to the Commanding Officer or the Com- mittee of Adjustment; and the Officer in charge of the Post Office Savings Bank shall be bound to comply with such re- quisition even though there is in force at the time of death or desertion of the account holder a nomination made in favour of any person. EXPLANA1TON : The aforesaid requisition must be. made under section 3 or section 4 of the Army and Air Force (Disposal of Private Property) Act, 950 (40 of 1950) in the case of aperson belonging to the Army or the Air Force, or under Section 171 or section 172 of the Navy Act, 1957 (62 of 1957) in the case of a person belonging to the Navy.

RULE 15 RESPONSIBILITY OF THE SAVINGS BANK

—The Post Office Savings Bank shall not be—

(a) responsible to a depositor for any fraudulent with- drawal by a person obtaining possession of the pass book or a cheque from the cheque book of the depositor;

(b) liable if any fraud takes place due to failure of the depositor to ensure that the amount sought to be withdrawn is entered in the application for withdrawal before the same is presented at or sent duly signed by him to the Post Office Savings Bank for with-

(c) resposible to a depositor, if he or, in case the withdrawal form is presented by his agent, the agent, fails to ensure that the receipt for the payment is signed by him or the agent, as the case may be, only at the time of actual payment and not at the time of presentation of the application for withdrawal.

RULE 16 ACCOUNTS OPENED INCORRECTLY

(1) Where an account is found to have been opened incorrectly under a category other than the one applied for by the depositor, it shall be deemed to be an account of the category applied for if he was eligible to open such account on the date of his application and if he was not so eligible, the account may, if he so desires, be converted into an account of another category ab initio, if he was eligible to open an account of such category on the date of his application.

(2) In cases where the account cannot be so converted, the relevant Head Savings Bank may, at any time, cause the account to be closed and the deposits made in the account refunded to the depositor with interest at the rate applicable from time to time to a savings account of the type for which the depositor is eligible.

RULE 17 ACCOUNTS OPENED, IN CONTRAVENTION OF RULES

—.Subject to the provisions of rule 16 ,. where an account is found to have been opened in contravention of any relevant rule for the time being in force and applicable to the accounts kept in the Post Office Savings Bank, the relevant Head Savings Bank may, at any time, cause the account to be closed and the deposits made in the account refunded to the depositor without interest.

RULE 18 RECOVERY OF AMOUNT PAID IN EXCESS

—The Head Savings Bank shall be competent to recover any interest or any other amount paid in excess in the same manner as an arrear of land revenue.

RULE 19 INTERPRETATION

—If any question arises relating to the interpretation of any relevant rule, it shall be referred to the Central Government for a decision.

RULE 20 POWER TO RELAX

—Where the Central Government is satisfied that the operation of any relevant rule causes undue hardship to the depositor or depositors of anaccount, it may, by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

NATIONAL SAVINGS CERTIFICATES (VII ISSUE) RULES, 1989

In exercise of the powers conferred by

Section 12 of the Government Savingi Certificates Act, 1959(46 of 1959), the Central Government hereby mate the following rules, namely:-

RULE 1 SHORT TITLE AND COINMENCEMENT

(1)- These rules may be called the National Savings Certificates (VIII Issue) Rules, 1989.

(2) They shall come into force on the 8th May, 1989.

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires,-

(i) "Act" means the Government Savings Certificates Act, 1959 (46 of 1959)- ;

(ii) ''Banking Company" means a banking company as defined in Section 5 of the Banking Regulations Act, 1949 (10 of 1949) ;

(iii) "cash" means cash in Indian currency;

(iv) "certificate" means the National Savings Certificates (VIII Issue);

(v) "company" means a company as defined in the Companies Act, 1956 (1 of 1956)- ;

(vi) "corporation" means a corporation established by or under any law for the time being in force;

(vii) "firm" means a firm registered under Indian Partnership Act, 1932 (9 of 1932)- :

(viii) "Form" means a form appended to these rules and also includes forms as prescribed by the Department of Posts ;

{ix) "Government Company" means a company as defined in Section 617 of the Companies Act, 1956 (1 of 1956)- ;

(x) "Local Authority" means municipal corporation, municipal committee, district board. Body of port commissioners or other authority legally entitled to or entrusted by the Government with the control or management of 'municipal or local fund ;

(xi) "Old Certificate" means a certificate issued under the Post Office Savings Certificates Rules, 1960 , or the National Savings Certificates (First Issue) Rules, 1965 or the National Savings Certificates (4 Issue) Rules, 1970 or the National Savings Certificates (V Issue) Rules, 1973 or a Bond issued under the National Development Bonds Rules, 1977 or the National Savings Certificates (VI Issue) Rules, 1981 or the National Savings Certificates (VII Issue) Rules, 1981 or the Social Security Certificates Rules, 1982 or the Kisan Vikas Patra Rules, 1988 .

(xii) "Post Office" means any departmental post office in India doing savings bank work and such other post office as is authorised by Department of Posts ;

(xiii) "Scheduled Bank" means a bank for the time being included in the second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934)- ;

(xiv) "Trust" means a trust registered under any law for the time being in force.

RULE 3 DENONIINATIONS UI WHICH CERTIFICATES BHALL BE ISSUED

-The National Savings Certificates (VIII Issue) shall be issued in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10000 and such other denomina- tions as may benotified by the Central Government from time to time.

RULE 4 TYPES OF CERTIFICATES AND ISSUE THEREOF

(1) The certificates shall be of the following types, namely :-

(a) Single Holder Type Certificates;

(b) Joint 'A' Type Certificates; and

(c) Joint 'B' Type Certificates.

(2) (a) A Single Holder Type certificate may be issued to:-

(i) an adult for himself or on behalf of a minor or to a minor ;

(ii) a banking company excluding a Cooperative Bank;

(iii) a company;

(iv) a corporation;

(v) an association, institution or a body registered as a society under any law for the time being in force excluding coopera- tive society;

(vi) a firm;

(vii) a local authority ;

(viii) a trust.

(b) A Joint 'A' Type certificate may be issued jointly two adults payable to both the holders jointly or to the survivor.

(c) A Joint 'B' Type certificate may be issued jointly to two adults payable to both the holders jointly or to the survivor.

RULE 5 PARCHASE OF CERTIFICATES

-Certificates may be purchased for any amount.

RULE 6 PROCEDURE FOR PURCHASE OF CERTIFICATES

-Any person or body specified in Rule 4 - , desiring to purchase a certificate, shall present at a Post Office an application in Form I, either in person or through an authorised agent of the Small Savings Schemes.

RULE 7 LEGAL TENDER

-Payment for the purchase of a certificate may be made to a post office in any of the following modes, namely :-

(i) cash;

(ii) a locally executed cheque, pay order or demand draft drawn in favour of the Postmaster;

(iii) by presenting a duly signed withdrawal form together with the pass book for withdrawal from the Post Office Savings bank account;

(iv) surrender of a matured old certificate duly discharged as follows. -"Received payment through issue of fresh certificate vide application attached":

RULE 8 ISSUE OF CERTIFICATES

(1) On payment being made under Rule 7- , except where payment is made by a cheque, pay order of demand draft, a certificate shall normally be issue immediately, and the date of such certificate shall be the date of payment.

(2) Where payment for the purchase of a certificate is made by a cheque, pay order or demand draft, the certificate shall not be issued before the proceeds of the cheque, pay order or demand draft, as the case may be, are realised and the date of such certificate shall be the date of encashment of the cheque, pay order or demand draft) as the case may be.

(3) If for any reason a certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later by exchanged for a certificate and the date of such certificate shall be as specified in sub-rule (1) or sub-rule (2), as the case may be.

RULE 9 CERTIFICATE IN LIEU OFPROCEEDKOFOLDCERTIFICATE

-Aholderof an old certificate entitled to encash that certificate may make an application in Form I for the grant of a certificate under these rules ; on receipt of such an application, there shall be issued to the applicant a certificate under these rules, the date of issue being the date on which the old certificate duly discharged is presented.

RULE 10 TRANSFER FROM ONE POST OFFICE TO ANOTHER

(1) A certificate may be transferred from a post office at which it stands registered) to any other post office on the holder or holders making an application in the prescribed form at either of the two post offices.

(2) Every such application shall be signed by the holder or holders of the certificate: Provided that in the case of Joint 'A/ Type Certificate or a Joint 'W Type Certificate the application may be signed by one of the joint holders if the other is dead.

RULE 11 TRANSFER OF CERTIFICATE FROM ONE PERSON TO ANOTHER

(1) A certificate may be transferred with the previous consent in writing of an officer of the post office as specified below (hereinafter referred to in these rules as authorised Postmaster). Gases in which transfer can Designation of the officer com- be sanctioned petent to grant permission for transfer (a) (i) From the name of a deceased holder to his heir (ii) From a holder to a court of law or to any other person under the orders of court of law Postmaster of the post office where the certificate stands (iii) From a single holder to the names of registered. joint holders of whom the transferee shall be one {iv) From joint holders to the name of one of the joint holders (b) All other cases Head Postmaster

(2) An authorised Postmaster as referred in sub-rule (1) shall give his conient to the transfer of a certificate only if the following conditions are satisfied, namely:-

(a) the transferee is eligible under these rules to purchase certificates;

(b) the transfer is made after the expiry of a period of at least one year from the date of the certificate or where the transfer is sought before the expiry of such period, the transfer falls under any of the following categories, namely :-

(i) transfer to a near relative out of natural love and affection ;

Explanation.-For the purposes of this rule, "near relative" means husband, wife, lineal ascendent or decen- dent, brother or sister.

(ii) transfer in the name of the heir of the deceased holder ;

(iii) transfer from a holder to a court of law or to any other person under the orders of the court of law.

(iv) transfer in accordance with Rule 12- ;

(v) transfer in the name of the survivor in the event ol death of one of the joint holders.

{c) An application for transfer is made in the prescribed form and is signed by the holder or holders of the certificate : Provided that in the case of a joint 'A' Type Certificate or a Joint 'B' Type Certificate the application may be signed by one of the holders, if the other is dead.

(3) Without prejudice to the provisions of sub-rule (2), an authorised Postmaster shall give his consent to the transfer of a certificate held on behalf of a minor only if at the time of the proposed transfer, a parent or the guardian referred to in sub-clause (i) or, as the case may be, sub-clause (ii), of clause {b) of Section 5- of the Act, certifies in writing, that the minor is alive and that such transfer is in his interest.

(4) In every case of transfer, other than a transfer under Rule 12- , the original certificate shall be duly discharged and the new certificate bearing the same date as that of the original certificate surrendered shall be issued in the name of the transferee.

RULE 12 PLEDGING OF CERTIFICATE

(1) On an application being made in the prescribed form, by the transferor and the transferee, the Postmaster of the office of the registration may, at any time, permit the transfer of any certificate as security to-

(a) the President of India or Governor of a State in his official capacity;

(b) the Reserve Bank of India or a scheduled bank or a cooperative society including a cooperative bank;

{c) a. corporation or a Government company; and

(d) a local authority : Provided that the transfer of a certificate purchased on behalf of a minor shall not be permitted under this sub-rule unless the parent or the guardian of the minor referred to in sub-clause (i) or as the case may sub-

clause (ii), of clause (b) of Section 5- of the Act certifies in writing that the minor is alive and that the transfer is for the benefit of the minor.

(2) When any certificate is transferred as securing under sub-rule (1), the Postmaster of the office of the registration shall make the following endorsement on the certificate, namely :- "Transferred as security to..............".

(3) Except as otherwise provided in these rules, the transferee of a certificate under this rule shall, until it is re-transferred under sub-rule (4), he deemed to be the holder of the certificate.

(4) A certificate transferred under sub-rule (2), may, on the written authority of the pledgee, be re-transferred with the previous sanction in writing of the authorised Postmaster and when any such transfer is made) the Postmaster of the office of registration shall make the following endorsement on the certificate, namely :- "Re-transferred to............".

Note 1.-A Gazetted officer of the Government accepting the certificate as security under sub-rule ( I ) or releasing the pledge under sub-rule (4) on behalf of the President or the Governor of a State, shall certify under his dated signature and seal of office that he is duly authorised to execute such instruments or deeds on behalf of the President of India or Governor of a State,

giving the particulars of the number and date of the notification of the Government authorising him in this behalf.

Note 2. -An officer of the Reserve Bank of India or a scheduled bank or a cooperative society including a co-operative bank, a corporation or a Government company or a local authority, as the case may be, accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the respective institution, shall certify under his dated

signature and seal of office that he is duly authorised under the articles of the said institution, to execute such instruments or deeds on its behalf.

(5) Where as a result of several endorsements made under sub-rules (2) and (4) on a certificate, no space is left for making further endorsements of a like character on that certificate, a fresh certificate may be issued by the Postmaster of the office of the registration in lieu of such certificate.

(6) A fresh certificate issued under sub-rule (5) shall be treated as equivalent to the certificate in lieu of which it has been issued for all purposes of these rules.

RULE 13 REPLACEMENT OF LOST OR DESTROYED CERTIFICATE

(1) If.-i certi- ficate is lost) stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of duplicate certificate to the post office, where the certificate is registered or to any other post office in which case the application will be forwarded to the post office of registration.

(2) Every such application shall be accompanied by a statement showing particulars) such as number, amount and date of the certificate and the circumsrance attending such loss) theft) destruction) mutilation or defacement.

(3) If the Officer-in-charge of the post office of registration is satisfied of the loss) theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certificate on the applicant furnishing an indemnity bond in the prescribed form with one or more approved sureties or with a bank's guarantee: Provided that where the face value or the aggregate face value of the certificate or certificates lost) stolen) destroyed mutilated or defaced is Rs. 500 or less) a duplicate certificate or certificates may be issued on the applicant furnishing an indemnity bond without any such surety or guarantee: Provided further that where such application is made with respect to a certificate mutilated or defaced, of whatever face value, a duplicate certifi- cate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or defaced is surrendered and the certificate is capable of being identified as the one originally issued ;

(4) A duplicate certificate issued under sub-rule (3) shall be treated as equivalent to the original certificate for all the purposes of these rules except that it shall not be encashable at a post office other than the post office at which such certificate is registered without previous verification.

RULE 14 NOMINATION

(1) Subject to the provision of sub-rules (2) to (6), the single holder or joint holders of a certificate may, by filling in necessary particulars on Form I at the time of purchasing the certificate, nominate any person who, in the event of death of the single holder or both the joint holders, as the case may be, shall become entitled to the certificate and to the payment of the amount due thereon. If such nomination is not made at the time of purchasing the certificate, it may be made by the single holder, the joint holders or the surviving joint holder, as the case may be, at any time after the purchase of the certificate but before its maturity, by means of an application in Form 2 to the Postmaster of the office at which the certi- ficate stands registered.

(2) There shall not be more than one nominee except in cases where the denomination of a certificate is Rs. 500 or more.

(3) No nomination shall be made in respect of a certificate applied for and held by or on behalf of a minor.

(4) A nomination made by the holder or holders of a certificate under this rule may be cancelled or varied by submitting an application in Form 3 affixing postage stamps of the value specified in sub-rule (2) of Rule 25- together with the certificate to the Postmaster of the post office at which the certificate stands registered.

(5) Separate applications for nomination or cancellation of a nomina- tion or variation of a nomination shall be made in respect of certificates registered on different dates.

(6) The nomination or the cancellation of a nomination or the variation of a nomination shall be effective from. the date it is registered in the post office, which shall be noted on the certificate.

RULE 15 ENCASHMENT ON MATURITY

(1) The maturity period of a certificate of any denomination shall be six years commencing from the date of the certificate. The amount, inclusive of interest, payable on encashment of a certificate at any time after the expiry of its maturity period shall be Rs. 201.50 for denomination of Rs. 100/- and at proportionate rate for any other denomination. The interest as specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year up to the end of the fifth year, shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount efface value of the certificate. TABLE The year for which interest Amount of interest (Rs.) accruing on accrues certificate of Rs. 100 denomination First year 12.40 Second Year 13.90 Third Year 17.50 Fifth year 19.70 Sixth year 22.40 Note.-The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount in Table above.

RULE 16 PREMATURE ENCASHMRNT

(1) Notwithstanding anything contain- ed in Rule 15- and subject to sub-rules (2), (3) and (4), a certificate may be prematurely encashed in any of the following circumstances, namely :_-

{a) on the death of the holder or any of the holders in case of joint holders;

(b) on forfeiture by a pledgee being a Gazetted Government Officer when the pledge is in conformity with these rules; or

(c) when ordered by a court of law.

(2) If a certificate is encashed under sub-rule (1) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable.

(3) If a certificate, is encashed under sub-rule (1) after expiry of one year but before the expiry of three years from the date of certificate, the encashment shall be at a discount. On encashment of the certificate, an amount equivalent to the face value of the certificate together with simple interest shall be payable. Such simple interest shall be calculated on the face value at the rate applicable from time to time to single accounts under the Post Office Savings Account Rules, 1981 , for the complete months for which the certificate has been held. The difference between the aforesaid simple interest and the interest accruing under Rule 15- shall be deemed to be the discount.

(4) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of the certificate, the amount payable inclusive of interest accrued under Rule 15- and after adjustment of discount, shall be as specified in the Table below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of an other denomination. TABLE Period from the date of the certificate Amount payable to the date of its encashment inclusive of interest (Rupees) (1) (2) 3 years or more, but less than 3 years and 6 months 132.00 (1) (2) 3 years and 6 months or more, but less than 4 years 138.50 4 years or more, but less than 4 years and 6 months 145.00 4 years and 6 months or more, but less than 5 years 152.00 5 years or more, but less than 5 years and 6 months 159.00 5 years and 6 months or more, but less than 6 years 166.50

RULE 17 PLACE OF ENCASHMENT

-A Certificate shall be encashable at the post office at which it stands registered : Provided that a certificate may be encashed at any other post office if the officer-in-charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encash- ment is entitled thereto.

RULE 18 DISCHARGE OF CERTIFICATE

(1) The person entitled to receive the amount due under a certificate shall, on its encashment, sign on the back thereof in token of having received the payment.

(2) In the case of a certificate purchased on behalf of a minor who has since attained majority, the certificate shall be signed by such a person himself, but his signature shall be attested by the person who purchased it on his behalf or by any other person who is known to the Postmaster.

(3) A certificate of discharge may be issued by the post office to any person encashing a certificate on payment of the fee specified in sub-rule ( I ) of Rule 25- .

RULE 19 ENCASHMENT OR MINOR'S CERTIFICATE

(1) A person encashing a certificate on behalf of a minor shall furnish a letter fiom the parent or guardian of the minor referred to in sub-clause (i), or as the case may be, sub-clause (H), of clause (b) of Section 5- of the Act, to the effect that the minor is alive and that the money is required on behalf of the minor.

(2) When the nominee is a minor, the person appointed under sub- section (3) of Section 6- of the Act while encashing the certificate, shall furnish a certificate that the minor is alive and that the money is required on behalf of the minor.

RULE 20 PAYMENT TO HEIRS

(1) If a person dies and is at the time of his death the holder of a Savings Certificate and there is no nomination in force at the time of his death and probate of tiis will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) is not, within three months of the death of the holder produced to the authority specified in the Table to sub-rule (2), then if the sum due on the Savings Certificate does not exceed Rs. 20,000 (inclusive of the sum due on the Savings Certificates issued from time to time and held by the deceased), the authority specified in Table to sub-rule (2) may pay the same to any person appearing to it to be entitled to receive the sum or to administer the estate of the deceased.

(2) The authorities specified in the Table below shall be competent to sanction claims up to the limit noted against each on the death of the holder of the savings certificate without production of the probate of his will or letters of administration of his estate or succession certificate granted under the Indian Succession Act, 1925(39 of 1925) . TABLE Name of the authority Limit (1) (2) Rs. (i) Departmental Sub-Postmasters in Time Scale Post Office 500 (ii) Sub-Postmaslers in Lower Selection Grade Post Office 1000 (iii) Non-gazetted Head Postmaster* and Sub-Postmasters in Higher Selection Grade 2000 (iv) Deputy Postmasters (Non-gazetted in Higher Selection Grade) and Assistant Presidency Postmasters (Non- gazetted in Higher Selection Grade) in the Presidency Post Office in charge of Saving Bank Branch 2000 (v) Deputy Postmasters (Gazetted in High Selection Grade) and Deputy Presidency Postmasters in the Presidency Post Office in charge of Savings Bank Branch 5000 (vi) Gazetted Postmasters/Superintendents of Post Offices' Senior Superintendents of Post Offices/Presidency Post- masters 10,000 (vii) Heads of Postal Circles/Regional Directors. 20,000

RULE 21 ENCASHMENT OF CERTIFICATES HELD BY ARMY, AIR FORCE AND NAVY PERAONNEL

-Where a certificate is held by a person who is subject to the Army Act, 1950(46 of 1950) or the Air Force Act, 1950(45 of 1950) - or the Navy Aci, 1957 (62 of 1957) - , and such person dies or deserts, the Com- manding Officer of the Corps, department, unit or ship to which the deceased or deserter belonged or the committee of Adjustment as the case may be, send a requisition to the officer in charge of the post office where the certifi- cate stand registered to pay him the amount due under the cenificate; and the officer-in-charge of the post office shall be bound to comply with such requisition even though there is in force at the time of death or desertion of holder of the certificate a nomination made in favour of any person.

Explanation.-The aforesaid requisition must be made under Section 3- or Section 4 of the Army and Air Force (Disposal of Private Property) Act, 1950 (40 of 1950)- in the case of a person belonging to the Army or the Air Force, or under Section 171- or 172 of the Navy Act, 1957 (62 of 1957)- in the case of a person belonging to the Navy.

RULE 22 RIGHTS OF NOMINEES

(1) In the event of the death of the holder of a certificate in respect of which a nomination is in force, the nominee or nominees, shall be entitled at any time before or after the maturity of the certificate to:-

(a) encash the certificate, or

(b) sub-divide the certificate in appropriate denominations in favour of individual nominees or two adult nominees jointly.

(2) For the purpose of sub-rule (1), the surviving nominee or nominees shall make an application to the Postmaster of the office of registration, supported by proof of death of the holder and of deceased nominee or nominees, if any.

(3) If there are more nominees than one, all the nominees shall give a joint discharge of the certificate at the time of receiving the payment or sub-division. Note.-When there is a nomination in favour of single nominee or two adult nominees, the post office of registration may, on an application made in that behalf, issue a fresh certificate in the name of such nominee or nominees jointly as the case may be.

RULE 23 CONVERAION FROM ONE CLENOMINATION TO ANOTHER

(1) Certi- ficates of lower denomination may be exchanged for a certificate or certificates of higher denominations of the same aggregate face value or a certificate of higher denomination may be exchanged for the cenificates of lower denomina- tion of the same aggregate face value : Provided that certificate bearing different dates shall not be combined for being exchanged for certificate or certificates of higher denomination.

(2) The date of the certificate or certificates issued in exchange shall be the same as that of the original certificate or certificate surrendered and not the date on which the exchange is made.

RULE 24 INCOME-TAX

-Interest on these certifications shall be liable to tax under the Income-tax Act, 1961(43 of 1961) - , on the basis of the annual accrual specified in Rule 15 - , but no tax shall be deducted at the time of payment of discharge value.

RULE 25 FEES

(1) A fee of rupees five shall be chargeable in respect of the following transactions, namely :-

(i) transfer of certificate from one person to another, other than a transfer from the holder to a court of law or under the orders of court of law;

(ii) issue of duplicate certificate under Rule 13- ;

(iii) issue of a certificate of discharge under Rule 18- ;

(iv) conversion from one denomination to another under Rule 23- .

Explanation.-The fee to be charged for a conversion under clause {iv) shall be

based on the number of the certificates required to be issued on such conversion.

(2) A fee of rupees five shall be chargeable on every application for registration of nomination or of any variation in nomination or cancellation thereof: Provided that no fee shall be charged on an application for registration of the first nomination.

RULE 26 RESPONSIBILITY OFTHEPOSTOFFICE

The post office shall not be responsible for any loss caused to a holder by any person obtaining possession of a certificate and fraudulently encashing it.

RULE 27 RECTIFICATION OF MI_TAKCS

-The Department of Posts, or the Postmasters General or the Heads of Postal Divisions in their respective jurisdictions) may either suo motu or upon an application by any person interested in any certificate issued in pursuance of these rules, rectify any clerical or arithmetical mistakes, with respect to that certificate, provided that it does not involve any financial loss to the Government or to any such person,

RULE 28 POWER TO RELAX

-Where the Central Government is satisfied that the operation of any of the provisions of these rules causes undue hardship to the holder or holders of a certificate, it may, by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

POST OFFICE SAVINGS ACCOUNT RULES, 1981

17th December, 1981

C.S.R. 663(E).—In exercise of the powers conferred by

section 15 of the Government Savings Banks Act, 1873(5 of 1873), the Central Government hereby makes the follwing rules, namely :—

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Post Office Savings Account Rules, 1981.

(2) They shall come into force on the lst day of April, 1982.

RULE 2 DEFINITIONS

—In these rules, unless the context otherwise requires,—

(a) "account" means a Savings Account;

(b) "Government company" means a Government company as defined in section 617 of the Companies Act, 1956- (1 of 1956);

(c) "Local authority" means a Panchayat, District Board, Municipal Committee (whether known as Corporation, Municipality or by any other name), body of Port Commissioners or other authority legally entitled to or entrusted by the Government with the control or management of any municipal or local fund;

(d) "provident fund" means—

(i) a provident fund to which the provisions of the Provident Fund Act, 1925-(19 of 1925) apply;

(ii) -a recognised provident fund within the meaning of clause (38) of section 2

of the Income-tax Act, 1961- (43 of 1961), or a provident fund established by or under any law for the time being in force;

(e) "Sanchayika" means a Savings Bank run in any school or college for collecting the savings of students of the school or college;

(f) "year" means a year commencing on the 1st day of April;

(g) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981, have the meanings respectively assigned to them in these rules. .

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981

—For matters not provided in these- rules, the provisions of the Post Office Savings Bank- General Rules, 1981 shall apply.

RULE 4 TYPES OF SAVINGS ACCOUNTS AND MATTERS CONNECTED THEREWITH

—The types of accounts, the persons by whom Such accounts may be opened and operated upon, maximum amount that can be credited to the account and other matters connected therewith shall be as specified in the Table below, namely:— TABLE Type of Account Who may open Maximum balance excluding interest for the current year Number of accounts that can be opened Who may operate the accoount 1 2 3 4 5 A. INDIVIDUAL ACCOUNTS : 1. Single Account (a) A person who has attained the age of majority and who is of sound mind(hereinafter referred to as an adult). (b) A minor who has attamed the age of 10 years. (c) A guardian on behalf of a minor. (d) (i) A guardian of a person of unsound mind. (ii) The Superintendent of the Mental Hospital where a person of unsoundmind is confined. (e) An authority controlling a Provident Fund, Superannuation Fund or Gratuity Fund, on behalf of its individual members. Rs. 25,000 in an account or in all the accounts taken together, if a depositor has more than one account. Rs. 25,000 Rs. 25,000 inclusive of the balance in the account, if any, opened by the minor himself. Rs. 25,000 Rs. 25,000 Without limit. Any number of accounts but not more than one account at one Post Office Savings Bank. One One on behalf of each minor. One on behalf of each person of unsound mind. One on behalf of each person of unsound mind. One on behalf of c'ch member. The adult. An illiterate, blind or otherwise physically handicapped adult may operate on his account through a literate agent, nominated by him for the purpose. The minor. The guardian during the minority of the and thereafter the exminor. (a) The guardian. (b) The Superintendent of the Mental Hospital. The authority controlling the Fund or the member on production of a letter of authorisation from such authority. 1 2 3 4 5 2. Joint Account (1) A-Type, that is to say, Payable to the depositors jointly or to two survivors Jointly or to the sole survivor. (ii) B-Type, that is to say, payable to any one of the depositors or to either of the two survivors or to the sole survivor. 3. Prndion Account. B. GROUP ACCOUNTS 4. Provident Fund, Su-perannuation Fund or Gratuity Fund Account. 5. Sanchayika Account C. INSTITUTTONAL ACCOUNTS 6. Public Account D. OHER ACCOUNTS 7. Security Deposit Account. Two or three adults. Two or three adults. A pensioner, being a retired Railway servant or a servant of the Posts and Telegraphs Department. The authority controlling the Fund, in the name of the Fund. The authority controlling the funds of the Sanchayika. A local authority or a lawfully constituted association, institution or other body for encouragement of thrift or for mutual benefit of its members. (a) An employee, contractor or agent of a Government body or of a Corporation or of a Government company or of a University who is required to deposit security in his capacity as such employee, contractor or agent. Rs. 1,00,000 in an account. If the depositors have more than one account (single, pension or joint), the balances or shares of balances in all such a ccounts taken together should not exceed Rs. 25,000 for each of the depositors. Rs. 50,000 in an account. If the depositors have more than one account (single, pension or joint), the balances or shares of balances in a 11 such accountes taken together should not exceed Rs. 25,000 for each of the depositors Rs. 25,000, inclusive of balances in single accounts, if any, and share of balances in joint accounts, if any, opened by the depositor. Without limit Without limit Without limit Without limit. Any number of accounts but not more than one Joint account at one Post Office Savings Bank. Any number of accounts but not more than one Joint account at one Post Office Savings Bank. One. One on behalf of the Fund. One One in respect of each authority or body. One in respect of each contract or security. All the depositors or both the survivors or the sole survivor as the acse may be. One of the depositors or either of the two survirvos or the sole survivor, as the case may be. (a) The Head Savings Bank or Sub-Savings Bank. for crediting to the account the amount of pension due to the pensioner on the first working day of the month following the month to which the pension amount relates and for recovering any amount credited in excess of the sum to which the pensioner was entitled (b) The pensioner, for making withdrawals. The authority controlling the Fund. One or two persons authorised by the authority controlling the funds of the Sanchayika. One or two persons authorised for the purpose either jointly or severally at the option of the authority or body. The pledgee, or the pledger to the extent of the amount authorised by the pledgee. Official Capacity Account (b) Any person who is required to deposit security in connection with the purchase of a motor vehicle or any person singly or persons jointly who is or are required to deposit security in connection with the purchase of a tractor. (c) A Co-operative Society or a Co-operative Bank with whom Government servants are placed on foreign service or deputation, for payment of their pay, leave salary and pension contribution. (i) Gazetted Government Officer or an officer of a Government company or Corporation or the Reserve Bank of India or a local authority in his official capacity on behalf of persons or bodies whose moneys are held as deposit or otherwise with such officer. (ii) A receiver appointed by a Court of law. in respect of moneys received by him as such receiver. The amount required t6 be deposited as security. Without limit. Without limit. One in respect of each vehicle or tractor. One in respect of each Cooperative Society or Bank. One on behalf of each person or body. The pledger (or the pledgers jointly) extent authorisede by the pledgee. The pledgee, or the pledger on the written authority of the pledgee, through one or two persons authorised for the purpose either jointly or severally at the option of the Co-operative Society or Bank who will pledge the account to the Governor of the State. The officer or receover who opened, the account or his in office. Note 1: For the purpose of maximum balance, the depositor's share in the balance of a joint account shall be taken as one-half or one-third of such balance according as the account is held by two adults or three adults. Note 2: An account standing in the name of a minor under item 1(b) or (c) of the Table, shall on his attaining the majority, be treated in all respects as an account opened by an adult under item (1)(a) of the Table. Note 3: Under item l(c) or(d) of the Table, only one account can be opened in respect of a minor or a person of uunsound mind, as the case may be. ' Note 4: A joint account in .the names of two adults may be opened in addition to a single account and pension acccount held by either or both of the depositors in the same or another Post Office Savings Bank. If one of the joint depositors dies, the joint account shall, as from the date of the death of such depositor, be deemed to be a single account in the name of the surviving depositor. If he is already having a single account in his name in the same Post Office Savings Bank, one of the two accounts shall be closed. Note 5: A joint account in the names of three depositors may be opened in addition to a single account and pension account held by any or all of the depositors and joint accounts held by any two of the depositors in the same or another Post Office Savings Bank. If one of the three depositors dies, the account shall, as from the date of death of such depositor, be deemed to be a joint account in the names of the two surviving depositors. If they are already having a joint account in their names-in the same Post Office Savings Bank, one of the two accounts shall be closed. In the case of death of one of the two surviving depositors, the account shall as from the date of death of such depositor, be deemed to be a single account in the name of the sole surviving depositor. If he is already having a single account in his name in the same Post Office Savings Bank, one of the two accounts shall be closed. Note 6: The term 'pensioner' includes a person drawing family pension. A pension account may be opened in addition to a single account or a joint account or both in the same or another Post Office Savings Bank. Note 7: A High School or Intermediate College, being an institution within the meaning of the Uttar Pradesh High Schools and Intermediate Colleges (Payment of Salaries of Teachers and other Employees) Act, 1971 (Uttar Pradesh Act 24 of 1971) may, jointly with the Inspector as defined in the said Act, open a public account Ader item 6 of the Table for the purpose of payment of salaries of its teachers and other employees. Such account may be operated (i) jointly by a representative of the mangement and by the said Inspector or an Officer authorised by the said Inspector or (ii) by a representative of the management alone if duly authorised to that effect by the said Inspector or (iii) by the said Inspector himself or an Officer

RULE 5 DEPOSITS AND WITGHDRAWALS IN AN ACCOUNT

1 (1) No account shall be opened with a deposit of a sum less than twenty rupees.

2 (2) No subsequent deposit shall be of a sum less than five rupees.

3 (3) No withdrawal shall be for a sum less than five rupees.

4 (4)No withdrawal shall be permitted which has the effect of reducing the balance to less than 11 ["fifty rupees"] in an account not having cheque facility and 11 13 ["five hundred rupees"]in an account in which cheque facility has been provided.

(5) Not more than one withdrawal in a day shall be allowed from an account standing at an Extra. Departmental Sub Savings Bank or Branch Savings Bank.

(6) Withdrawal of not less than 12 ["twenty rupees"] may be made by cheque at any Head Savings Bank or Sub Savings Bank, authorised in this behalf, subject to the conditions prescribed.

10 7. The deposits which are not in multiples of 5 paise shall be rounded to the next integer of five paise

RULE 6 INTEREST ON DEPOSITS IN AN ACCOUNT

(1) Subject to sub-rules (2) to (9), interest at the rate, notified by the Central Government in the official gazette from time to time,, shall be allowed for each calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year.

(2) Interest shall be allowed only on sums of complete rupees and shall be rounded off to the nearest multiple of five paise and for this purpose any amount of 2.5 paise or more shall be treated as five paise and any amount less than 2.5 paise shall be ignored.

6 (3) No interest shall be allowed on an account for any month in which the balance at credit is below twenty rupees at any time between the tenth and last date of the month.

7 (4) No interest shall be allowed on an account for any year in which the amount of interest for the year is less than one rupee.

(5) No interest shall be allowed on any sum in excese of the maximum balance specified in column (3) of the Table below rule 4- .

(6) No interest shall be allowed on an account opened by any Provided Fund, Superannuation Fund or Gratuity Fund in the name of a member, after the expiry of six months from the first day of the month in which the order, or as the case may be the authorisation for final withdrawal of the balance at credit is issued by the authority controlling the Fund.

(7) No interest shall be allowed on a security deposit account after the expiry of three months from the first day of the month in which the amount secured has been withdrawn by the pledge or the pledgee baa authorised repayment of such amount to the pledger, as the case may be.

(8) If an account is closed in Ihe course of a year, interest shall be .allowed upto the end of the month preceding the month in which the account is closed.

(9) (a) In the event of death of a depositor, the interest on his account shall be

allowed only till the end of the month preceding the month in which notice. is

issued to the person or .persons recognised by ihe Post Office Saving Bank as being entitled to receive the balance in the said account.

(b) Interest for any subsequent period shall be allowed only if the balance in the account of the deceased' or the share therein to which a claimant it entitled, together with the balances or share of balances, if any, in other savings

accounts held by him, does not exceed 9 ["fifty thousand rupees"]and the claimant gives a declaration to that effect to the Post Office Savings Bank.

RULE 7 CONFIRMATION OF BALANCE

—The depositor shall present his pass book as soon as passible after the 31st day of March to the Post Office Savings Bank where his account stands, for addition of interest and confirmation of the balance at credit in the account and if the pass book is not so presented by the depositor or collected by him from the Post Office Savings Bank within three months of its presentation. It may entail acceptance by the depositor of the balance as appearing in the books of the Post Office Savings Bank as final.

RULE 8 SILENT ACCOUNT

8 (1) An account in which a deposit or withdrawal has not taken place for three complete years, shall be treated as a silent account.

14 (2) Transaction in respect of silent account shall be allowed as per the instructions issued by the Director General (Post) from time to time.

14 (3) In respect of silent accounts having balance below the stipulated minimum for an account not having cheque facility, service charge of Rs 20 shall be deducted on the last working day of each financial year. The account holder shall be reminded through a notice to reactivate the account.

14 (4) If the account holder fails to reactivate the account despite giving notice as in (3) above, service charge will continue to be levied and the account holder shall be reminded through a notice every time. After deduction of service charge if the balance becomes nil, the account will stand automatically closed. The subscriber will be notified when the account is closed."

RULE 9 FINAL WITHDRAWAL ON CLOSURE

(1) Except as provided in sub-rule (2), final withdrawal on closure of an account shall be allowed at a Sub-Savings Bank, Extra Departmental Sub- Savings Bank or Branch Savings Bank, only after obtaining the sanction of the relevant Head Savings Bank.

(2) When payment of interest, is not involved, final withdrawal on closure of an account may be allowed by a Sub-Savings Bank without obtaining the prior sanction of the Head Savings Bank.

RULE 10 SUPPLY OF SAVINGS BANK LEDGER COPY

—A depositor may, on payment of a fee of two rupees for every thirty entries or part thereof, obtain copy of his savings account as appearing in the ledger of the Post Office Savings Bank for any period for which such ledger is available.

RULE 11 REPEAL AND SAVING

(1) The provisions of the Post Office Savings Bank Rules, 1881 , which are in force and the Post Office Savings Banks Rules, 1965 are hereby repealed.

(2) Notwithstanding such repeal anything done or any action taken under the rules so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules or the Post Office Savings Bank General Rules, 1981 .

POST OFFICE TIME DEPOSIT RULES, 1981

17th December, 1981

C.S.R. 664(E,).—In exercise of the powers conferred by

section 15 of the Government Savings Banks Act, 1873(5 of 1873), the Central Government hereby makes the following rules, namely :—

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Post Office Time Deposit Rules, 1981.

(2) They shall come into force on the 1st day of April, 1982.

RULE 2 DEFINITIONS

—In these rules, unless the context otherwise requires,—

(a) "account" means a Time Deposit Account:

6 (aa) banking company" means a company as defined in Section 5 of the Banking Regulation Act, 1949 (10 of 1949);

(ab) "company means a company as defined in the Companies Act, 1956 (1 of 1956);

(ac) "corporation" means a corporation established by under any law for the time being in force;"regimental fund" means any fund established by the armed forces of the Union for the welfare of the retired or serving members of such force and their dependents

(b) "year" means a year commencin.B on the date of deposit in an account ;

(c) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules. 1981, have the meanings respectively assig- ned to them in those rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981

—For matters not provided in these rules, the provisions of the Post Office Savings Bank General Rules 1981 shall apply.

RULE 4 TYPES OF ACCOUNTS AND MATTERS CONNECTED THEREWITH

(1) There shall be. four kinds of accounts, namely, I-year account, 2-year account, 3-year account and 5-year account in which deposits can be made for a period of one year, two years, three years and five years respectively.

(2) The types of accounts which maybe opened, the persons by whom such accounts may be opened and operated and other matters connected therewith shall be as specified in the Table below, namely :— TABLE Type of Account Who may open Number of accounts thay may be opened Who may operate the account (1) (2) (3) (4) A. INDIVIDUAL ACCOUNTS 1. Single Account. (a) A person who has attamed the age of majority and who is of sound mind (hereinafter referred to as an adult) One or more accounts The adult. An illiterate, blind or otherwise physically han-dicapped adult may operate on his account through a literate agent nominated by him for the purpose. (b) A minor who has attained the age of 10 years. One or more accounts The minor. (c) A guardian on behalf of a minor. One or more accounts on behalf of each minor. The guardian during the mino-rity of the minor and there-after, the ex-minor. (d) (i) A guardian of a person of unsound mind. One or more accounts on behalf of each person of unsound mind. . The guardian. (ii) Superintendent of Mental Hospital where a person of unsound mind is confined. One or more accounts on behalf of each person of unsound mind. The superintendent of the Mental Hospital. 2. Joint account . (a) A-Type, that is to say, payable to both jointly or to survivor. Two adults. One or more accounts. Both the depositors jointly or survivor. (b) B-Type, that is to say, payable to either of the depo-sistors or survivor. Two adults. One or more accounts. Either of the depositors or survivor. B. GROUP ACCOUNTS 3. (i) Provident Fund account. The authority controlling a Pro- One or more accounts on behalf The authority controlling the (ii) Superannuation fund account. vident-Fund, a superannuation Fund or a Gratuity Fund, of the Fund. fund. (iii) Gratuity Fund account. in the name of the Fund. Note :—An authority controlling the Fund may open an account only if the pattern of investment prescribed by the Central Govern-ment is applicable to, or is otherwise followed by such Fund. 4 Sanchayika account. The authority controlling the funds of the Sanchayika. One or more accounts. One or more persons authori-sed by the authority control- ling the Sanchayika. Note:— An authority controlling the funds of a Sanchayika may open only 1-year and 2-year accounts. C. INSTITUTIONAL ACCOUNTS 5. Charitable Endowment account Treasure of Charitable Endowments for India. One account on behalf of each Charitable Endowment. Treasurer of Charitable En-dowments for India or an agent appointed by him. D. MISCELLANEOUS ACCOUNTS 7 [____________________________________________________________________________ 1 2 3 4 ____________________________________________________________________________ "5-A. Other insti- A trust, a baking Company one or one or more tutional Accounts (excluding cooperatives), more persons as a corporation, an associa- accounts. authorised tion, institution, a body by the registered as a Society authority under any law for the controlling time being in force the (excluding cooperatives), institution a firm registered under or Fund." the Indian Partnership Act, 1932 (9 of 1932) a local authority and Regimental Fund and Welfare Fund. ____________________________________________________________________________] 6. Other accounts (i) A co-operative society, a co-operative bank or a scheduled bank on behalf of its members, clients or employees whose moneys are held with it as deposit or otherwise. One or more accounts on behalf One or more persons as au-of and in the name of a member, thorised by the co-operative client or employee, society or the co-operative bank or the scheduled bank for this purpose. 1915 (1) (2) (3) (4) (ii) A gazetted government officer, an officer of a government company or of a Corporation or of a local authority or an officer of a corporate body like a marketing committee established under a State Act and authorised by the State Government in this behalf, in his official capacity, or the Reserve Bank of India, on behalf of persons whose moneys are held as deposit or otherwise with such officer or the Reserve Bank of India. One or more accounts on behalf of any of the said persons, in the name of such person. The officer who opened the account or his successor in office.

RULE 5 DEPOSIT AND REPAYMENT

(1) The amount of each deposit in an account shall be a multiple of 1 [two hundred rupees] . There is no maximum limit for the amount of deposit or deposits that may be made in such account.

(2) Each deposit shall be repayable only after the expiry of the period for which it is made, namely, one year, two years, three years or five years, as the case may be.

(3) The repayment of a deposit under sub-rule (2) or payment of interest on a deposit under rule 7 or rule 8 or rule 9 , as the case may be, shall be made by the Post Office Savings Bank at which the account stands, on the production of the pass book accompanied by a written application: Provided that such repayment or payment of interest, as the case may be, shall not be made by an Extra Depart- mental Sub Savings Bank or Branch Savings Bank except with prior sanction of the relevant Head Savings Bank or relevant Sub Savings Bank.

(4) The amount of repayment of a deposit and payment of interest on a deposit shall be entered in the pass book over the signature of the Postmaster.

RULE 6 RE-DEPOSIT

(1) Where a deposit in an account has become due for repayment, the depositor may re-deposit the amount in the same account or another account, as the case may be, tendering his application for withdrawal of the original deposit in the Prescribed form duly discharged.

(2) Subject to sub-rule (3), the date of re-deposit shall be the date of withdrawal of the original deposit.

(3) (a) Where the re-deposit is made during the period specified in column (1) of the Table below and such re- deposit is for the period specified in the corresponding entry in column (2) thereof, the date of re-deposit shall be deemed to be same as the date of maturity of the original de- posit. TABLE Period elapsed between the date of maturity and the date of re-deposit Minimum period of re-deposit (1) (2) 1. 6 months or less. 2. More than 6 months and upto 12 months. 3. More than 12 months and upto 18 months 4. More than 18 months. 1 year 2 years 3 years 5 years

(b) In the case of a re-deposit falling under item 4 of the Table, if more than thirty months have elapsed after the maturity of the original deposit, the date of re-deposit shall be deemed to be the date preceding the date of withdrawal of the original deposit by thirty months.

RULE 7 INTEREST

The deposit shall carry interest at the rate specified in the Tables below and such interest shall be payable to the depositor at the end of each year in the period of deposit: Provided that in the case of a deposit made before 23rd July, 1974, the rates of interest notified prior to that date by the Central Government from time to time for such deposit shall be applicable for the period of deposit upto and inclusive of the '22nd July, 1974 and the rates of interest specified in Table A below shall be applicable for any remaining period of deposit commencing from the 23rd July, 1974. TABLE A For deposits made before the 1st March, 1978 Period of deposit Rate of interest per annum 1 year 2 years 3 yeans 5 years 8 per cent 8 1/2 per cent 9 per cent 10 per cent TABLE B For deposits made on or after the 1st March, 1978 but before the 1st October, 1979 Period of deposit Rate of interest per annum 1 year 2 years 3 years 5 yean 7 per cent 7 1/2 per cent 8 per cent 10 per cent TABLE C For deposits made on or after the 1st October, 1979 but before the 2nd March, 1981. Period of deposit Rate of interest per annum 1 year 2 years 3 years 5 years 8 per cent 8 1/2 per cent 9 per cent 10 1/2 per cent

2 TABLE D (For deposits made on or after the 2nd March, 1981 but before the 1st April 1982). ____________________________________________________________________________ Period of deposit Rate of interest per annum ____________________________________________________________________________ 1 Year 8 1/2 per cent 2 Years 9 1/2 per cent 3 Years 10 1/2 per cent 5 Years 10 1/2 per cent ____________________________________________________________________________ *As corrected vide G.S.R. 617(E), dated 11-10-1982, published in the Gazette of India, Extra., Part II, Section 3(i) dated 20-10-1982, p. 2 [No. F. 2/7/82-NS] 3 ["TABLE E (For deposits made on or after the 1st April, 1982 but before the 1st March, 1983) ____________________________________________________________________________ Period of deposit Rate of interest per annum ____________________________________________________________________________ 1 year 9 per cent 2 years 9 3/4 per cent 3 years 10 1/2 per cent 5 years 10 1/2 per cent ____________________________________________________________________________ TABLE F (For deposits made on or after the 1st March, 1983) ____________________________________________________________________________ Period of deposit Rate of interest per annum ____________________________________________________________________________ 1 year 9 per cent 2 years 9 3/4 per cent 3 years 10 1/2 per cent 5 years 11 1/2percent ____________________________________________________________________________ Note.- For deposits made on or after the 1st October, 1979, interest will be payable at the rates specified in Table C or Table D or Table E or Table F, aa the case may be, calculated at half-yearly rest."]

TABLE M (For deposits made on or after the 1st January, 1999 bur before 15th January, 2000)

Note-(1) For the deposits made on or after 1st October, 1979 and before 24th April 1992, interest will be payable at the rate specified in Table C or Table E or Table F or Table G or Table H or Table I or Table J or Table K, as the case may be calculation at half yearly compounding basis (2) For deposits made on or after the 24th April, 1992, interest will be payable at the rates specified in Table K or Table L or Table M or Table N, as the case may be, calculated at quarterly compounding basis. TABLE O (For deposits made on or after the 1st March, 2002)

TABLE P (For deposits made on or after the 1st March, 2002)

RULE 8 PREMATURE WITHDRAWAL

—Premature withdrawal of a deposit my be allowed subject to the following conditions, namely :—

(a) No deposit may be withdrawn before the expiry of one year from the date of deposit.

(b) Where a deposit in a 2-year, 3-year or 5-year account is withdrawn prematurely, interest on such deposit shall be payable to the depositor for the completed years and months falling in the period commencing on the date of deposit and ending with the date of withdrawal and such interest shall be calculated at the rate which shall be two per cent less than the rate specified for a deposit of 1 year, 2 years or 3 years, as the case may be, in the concerned Table under rule 7 . Explanation : Where the completed years and months in the case of a deposit in a 5-year account exceed 3 years, such interest shall be calculated at the rate which shall bo two per cent less than the rate specified for a deposit of 3 years in the concerned Table under rule 7.

(c) Any interest already paid on the deposit under rule 7 shall be recovered from the amount of repayment of deposit and the interest payable under this rule.

RULE 9 POST-MATURITY INTEREST

—Where repayment of a deposit under rule 7 has become due but has not been made, 4 ["interest shall be allowed on the amount due"]for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions, namely :—

(a) The interest shall be simple and shall be calculated at the rate applicable, from time to time, to savings accounts of the type of single or joint account.

(b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.

(c) The interest shall be paid to the depositor in a lump sum at the time of 5 ["repayment of the amount due"].

RULE 10 PLEDGING OF ACCOUNTS

(1) Subject to sub-rules C2) to (7), on an application being made in the prescribed form by the transferor and the transferee, the officer in charge of the Post Office Savings Bank where an account of the transferor stands, may at any time. during the currency of the account, permit transfer of the account as security to—

(a) the President of India or Governor of a State in his official capacity;

(b) the Resereve Bank of India or a scheduled bank or a co-operative society including a co-operative bank ;

(c) a corporation or a Government company ; or

(d) a local authority,

(2) Transfer under sub-rule (1) shall be permitted only in respect of the whole account and not for a part of it.

(3) Transfer of u account opened on behalf of a minor shall be permitted only if his guardian certifies that the minor is alive and the transfer is for the benefit of the minor.

(4) When an account is transferred under sub-rule (1), the Post Office Savings Bank shall make the following endorsement below the entry of the last deposit in the pass book and also in the page of ths pass-book where the name and address of the depositor are written, namely :"Transferred as security to......................."

(5) Except as otherwise provided in the relevant rule, the transferee of an account under this rule shall, until it is re-transferred under sub-rule (6) be deemed to be the holder of the account.

(6) An account transferred under sub-rule (1), may, on the written authority of the pledgee, be re-transferred with the previous sanction of the authorised Postmaster and when such re-transfer to made, the Post Office Savings Bank shall make the following endorsement in the pass book at the places indicated in sub-rule (4), namely:— "Re-transferred to.................... (7) The pass book shall be presented by the depositor or the transferee, as the case -may be, to the Post Office Savings Bank for purpose of making endorsement under sub-rule (4) or (6). NOTE 1 : A Gazetted Officer of the Government accepting an account as security under sub-rule (1) or releasing the security under sub-rule (6) on behalf of the President of India or the Governor of a State shall certify that he 'is duly authorised under article 299 of the Constitution to execute such instruments or deeds on behalf of the President of India or the Governor of the State, giving the particulars of the number and date of the notifica- tion of the Government authorising him in this behalf. NOTE 2 : An officer of the Reserve Bank of India or a sche- duled bank or a co-operative society including a co-operative bank, a corporation or a Government company or a local authority as the the case may be, accepting an account as security under sub-rule (1) or releasing the security under sub-rule (6) on behalf of the respective institution, shall certify under his dated signature and seal of office that he is duly authorised under the articles of the said institution to execute such instruments or deeds on its behalf.

RULE 11 PROCEDURE ON THE DEATH OF THE DEPOSITOR

(1) Subject to sub-rules (2) and (3), on the death of the depositor in a single account or of the surviving depositor in a joint account, the procedure specified in rule 13 of the Post Office Savings Bank General Rules, 1981 shall apply.

(2) If there are not more than two surviving nominees or legal heirs, they may, at their option, continue the account and receive any outstanding amount of deposits and interest in the manner provided for in these rules, as if they had opened the account themselves.

(3) Where the account is not continued under sub-rule (2), it shall be closed and any deposit outstanding in the account shall be repaid with interest and such interest shall be allo- wed for the period for which the deposit has remained with the Post Office Savings Bank and the rate of such interest will, notwithstanding anything contained in rule 8 , be-

(i) as specified under rule 7 , for the completed years not exceeding the period for which the deposit was made; and

(ii) for any period thereafter in completed months upto a maximum of twenty-four months from the date of maturity, as specified from time to time for savings accounts of the type of single or joint account. Note : Any interest already paid on the account under rule 7 shall be recovered from the repayment of deposit and payment of interest under this sub-rule

(4) On the death of one of the deposit on in a joint account, the surviving depositor shall be treated as the sole owner of the account and he may continue the account or deal with it in the manner specified under sub-rule (3).

(5) On the death of the guardian of a minor or lunatic depositor, who opened the account, the new guardian may deal with the account in the manner specified under sub-rule (3) if the same is required in the interest of such depositor.

RULE 12 REPEAL AND SAVING

(1) " The Post Office (Time De- posits) Rules, 1970 are hereby repealed.

(2) Notwithstanding such repeal anything done or any action taken under the rules so repealed, shall be deemed to have been done or taken under the corresponding provisions of these rules or the Post Office Savings Bank General Rules, 1981.

POST OFFICE CUMULATIVE TIME DEPOSIT RULES 1981

17th December, 1981

G.S.R. 665(E).—In exercise of the powers conferred by

section 15 of the Government Savings Banks Act, 1873(5 of 1873), the Central Government hereby makes the following rules ; namely :—-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Post Office Cumulative Time Deposit Rules, 1981.

(2) They shall come into force on the 1st day of April, 1982.

RULE 2 DEFINITIONS

—In these rules, unless the context other- wise requires—

(a) "account" means a Cumulative Time Deposit Ac- count;

(b) "Table" means a Table appended to these rules;

(c) "year" means a year commencing on the date of the first deposit in an account;

(d) words and expressions used herein and not defined but defined in the Post Office Savings Bank Gene- ral Rules, 1981 have the meanings respectively assigned to them in those rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981

—For' matters not provided in these rules, the provisions of the Post Office Savings Bank General Rules, shall apply.

RULE 4 PESONS WHO CAN OPEN AN ACCOUNT

(1) An account may be opened by-

(a) a single adult; or

(b) two adults jointly, the amount due on the account being payable— (i) to both jointly or survivor, or (ii) to either of them or survivor ; or (c) a guardian on behalf of a minor or a person of unsound mind; or (d) a minor, who has attained the age of ten years, in his own name.

(2) A depositor can have more than one account in his name jointly with another subject to the limits specified in rule 6 .

RULE 5 TYPE OF ACCOUNT AND ITS MATURITY

(1) There shall be one type of account, namely, 10-Year account, and its matu- rity period shall be ten years.

(2)A 15-Year account opened under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959 shall be continued under these rules : Provied that at the written request of the depositor, such an account which has not become a discontinued account under rule 7 may be converted into a 10-Year account.

RULE 6 LIMITS ON DEPOSITS AND ACCOUNTS

—In each account, deposits shall be made monthly subject to the following conditions, namely;-

(i) The amount of each deposit shall be a multiple of five rupees.

(ii) The minimum deposit shall be ten rupees and the maximum deposit shall be one thousand rupees in a single account or two thousand rupees in a joint account.

(iii) The first deposit shall be made at the time of open- ing the account and the amount, of such deposit shall be the denomination of the account. Each subsequent monthly deposit shall be made before the end of the calendar month and shall be equal to the first deposit.

(iv) Where a deposit is made by means of a cheque, pay order or demand draft, the date of its pre- sentation to the Post Office Savings Bank shall be deemed to be the date of deposit.

(v) More than one account can be opened by a person in one or more Post Office Savings Banks but bis total deposits during the entire period of the ac- counts, including his share of deposits in joint accounts, if any, shall not exceed one lakh and twenty thousand rupees. Explanation.—For the purpose of this rule— (a) one half of the amount of deposits in a joint account shall be taken as the share of each depositor in such an account. (b) for arriving at the amounts of deposit mat can be made by a person who is already having an account or accounts, a deposit of any amount in a 15-year account shall be taken to be equivalent to one and a half times that amount in a 10-year account.

RULE 7 DEFAULTS IN DEPOSIT

(1) If there are defaults in monthly deposit, and such defaults exceed ten in the case of a 10-year account of fifteen in the case of 15-year account, the account shall be treated as discontinued.

(2) A depositor may deposit in one lump sum the defaulted instalments or as many of the defaulted instalments as will reduce the defaults to ten or less in the case of a 10-year account or fifteen or less in lhe case of a 15-year account.

(3) Interest at the rate of five paise for every five rupees of a defaulted instalment for each month of default shall also be paid by the depositor along with such deposit.

(4) An account in which defaulted instalments are so deposited shall not be treated as discontinued.

RULE 8 ADVANCE DEPOSITS

(1) In an account which has not become a discontinued account under rule 7 , deposits for not less than six monthly instalments may be made in advance in any calendar month at lhe option of the depositor and rebate on such deposits shall be admissible as follows;— Advance deposits Rebate for an account of Rs. 10/- denomination. (1) Six or more deposits but not exceding eleven deposits made in any calendar month. One rupee. (2) Twelve or more deposits made in any calendar month. Four rupees for every twelve deposits and one rupee for balance, if any, of not less than six deposits.

(2) For accounts of other denominations, the amounts of rebate shall be proportionate to the rates specified in sub- rule (1).

RULE 9 AMOUNT REPAYABLE TO DEPOSITOR ON MATURITY

(1) In the case of an account in which all the monthly deposits have been made, the amount, inclusive of interest, as specified in Tables 1 and 2 shall be repayable at the end of its maturity period.

(2) In the case of an account having defaults not exceeding ten in a 10-Year account or fifteen in a 15-Year account, the depositor shall have the following options, namely ;__

(a) to pay the defaulted instalments, with interest at the rate as specified in sub-rule (2) of rule 7 and receive full maturity value as per Table 1 or 2, as the case may be, at the end of the maturity period;

(b) to extend the maturity period by as many months as the number of defaults, pay the defaulted instalments monthly, without interest, during the extended period, and receive the full maturity value as specified in Table 1 or 2, as the case may be, at the end of the extended period ;

(c) if the defaults are not rectified during the maturity period or maturity period as extended under clause (b), to receive at the end of such period an amount, inclusive of interest, which shall be in the same proportion to the amount specified in Table 3 as the number of monthly deposits made in the account bears to one hundred and twenty if it is a 10-year account or to. one hundred and eighty if it is a 15-year account.

(3) In the case of an account treated as discontinued under rule 7 , the depositor shall be entitled to receive at the end of the maturity period, an amount, inclusive of interest, which shall be in the same proportion to the amount specified in Table 3 as the number of monthly deposits made in the account bears to one hundred and twenty if it is a 10-year account or to one hundred and eighty if it is a 15-vear account.

(4) (a) In the case of a 10-year account opened on or after the 1st day of May, 1981, a bonus shall be payable on its maturity in addition to the amount specified in subrules (1) and (2), subject to the following conditions, namely —

(i) the account shall not be a discontinued account under rule 7 ;

(ii) no withdrawal under rule 12 has been made in the account ;

(b) Such. bonus shall be at the rate of fifty rupees for an account of ten rupees denomination and at proportionate rates for other denominations,

RULE 10 REPAYMENT ON DEATH OF DEPOSITOR

(1) Subject to sub-rule (2), on the death of the depositor in a single account or both the depositors in a joint account, no further deposits shall be made in the account and the procedure specified in rule 13 of the Post Office Savings Bank General Rules, 1981 shall apply. For the purpose of such procedure, the amount due for repayment on The account shall be deemed lo be as follows :—

(a) If all the monthly deposits The amount specified in the have been made during Table I or 2. as the case may the maturity period or be. priod as extended under clause (b) of sub-rule (2) of rule 9.

(b) If there are defaults in deposit and

(i) If the nominee or legal The amount which shall heir desires to receive be in the same proportion payment of propor- to the amount specified in tionate amount on Table 3 as the number of expiry of the maturity monthly deposits made in period or maturity the account bears to one as extended under hundred and twenty if it caluse (b) of sub-rule is a 10-years account and 2 of rule 9 : to one hundred and eighty if it is a 15-year account,

(ii) if the nominee or legal the amount specified in Table heir desires to receive 4 or 5 or 7 or 8, as the case payment of propor- may be. donate amount ealier than under (i) above.

(2) Notwithstanding anything contained in sub-rule (1), if there are only one or two surviving nominees or legal heirs, he or they may continue the account even if, by doing so, the limit specified in rule 6 is exceeded.

(3) On the death of a depositor in a joint account, the surviving depositor shall be treated as the sole owner of the account and he may—

(a) continue the account even if, by doing so, the limit specified in rule 6 is exceeded; or

(b) receive, on the expiry of maturity period or maturity period as extended under clause (b) of sub-rule (2) of rule 9, an amount inclusive of interest, which shall be in the same proportion to the amount specified in Table 3, as the number of monthly deposits made in the account bears to one hundred and twenty if it is a 10-year account or to one hundred and eighty if it is a 15-year account; or

(c) claim, at any time earlier than under Clause (b), proportionate amount as specified in Table 4 or 5 or to or 7 or 8, as the case may be.

(4) On the death of the guardian of a minor or lunatic depositor, the new guardian may close the account and claim the amount due under rule 9, on expiry of the maturity period or maturity period as extended under clause (b) or sub-rule (2) of rule 9, or claim the proportionate amount as specified in Table 4 or 5 or 6 or 7 or 8, as the case may be, if the same is required in the interest of such depositer

(5) (a) In the case of a 10-year account opened or after the 1st day of May, .1981 and closed at the end of its maturity period or maturity period as extended under clause (b) or sub-rule (2) of rule 9, a bonus shall be payable in addition to the amount payable under this rule, subject to the following conditions, namely:—

(i) the account shall not be a discontinued account under rule 7;

(ii) no withdrawal under rule 12 has been made in the account

(b) Such bonus shall be at the rate of fifty rupees an account of ten rupees denomination and at proportionate rates for other denominations.

RULE 11 POST MATURITY INTEREST

—Where an account, including a discontinued account, is closed on a date subsequent to the maturity period or the extended period under clause (b) of sub-rule (2) of rule 9, in addition to the amount on the account under rule 9 or 10, interest shall to the depositor subject to the following condittly —

(i) The interest shall be simple and calculated at the rate applicable from time to time to savings account counts of the type of single or joint account.

(ii) I he interest shall be allowed for a maximum period of two years from the dale of maturity or the date of expiry of the extended period under clause (b) of sub-rule (2) of rule 9, as the case may date of closure of the account, and in computing such period, any part of the period which is less than a month shall be ignored.

(iii) The interest shall be calculated on the amount repayable under rule 9 or 10 as reduced by any amount recoverable from the depositor under subrule (6) of rule 12 in respect of withdraw, if any, made by him ana the interest payable by him thereon.

RULE 12 WITHDRAWAL

(1) Withdrawals in an account allowed during its maturity period subject to the conditions, namely:—

(i) The number of withdrawals shall not exceed two in a 10-year account and three in a 15-year account

(ii) The first withdrawal shall be allowed of minimum period of one year has elapsed from the date of opening of the account and the depositers has deposited at least twelve instalments in that account.

(iii) The second withdrawal shall be allowed only after the account has been in operation for a minimum period of five years.

(iv) The third withdrawal in a 15-year account shall be allowed only after the account has been in operation for a minimum period of ten years.

(v) Each withdrawal shall be restricted to of the balance in the account as on the date of application for withdrawal, inclusing of advance deposits and refund or previous withdrawals if any

(vi) No withdrawal shall be allowed in an account treated as discontinued under rule 7.

(vii) Each withdrawal shall be a multiple of five rupees

(2) Each withdrawal may be repaid in one lump sume at any time during the currency of the account or in equal monthly instalments of five rupees or multiples thereof. The number of such instalments shall be limited of twenty and shall not exceed the number of months remaining for maturity of the! account and such instalments shall be payable along with the monthley deposites.

(3) In respect of each withdrawal, simple interest shall be payable by the depositor at the following rates, namely

(i) 6 pen cent per annum in the case of withdrawals made before 1st April, 1972.

(ii) 7.2 per cent per annum in the case of withdrawals made during the period from 1st April, 1972 to 31st March, 1975.

(iii) 9.6 per cent per annum in the case of withdrawals made during the period from 1st April, 1975 to 31st January, 1977.

(iv) 12 per cent per annum in the case of withdrawals made on or after 1st February, 1977.

(4) In the case of repayment in one lump sum, the interest under sub-rule 3 shall be payable along with repayment of the amount withdrawn and such interest shall be calculated for full calendar months from the month of withdrawal to the month of repayment irrespective of the date on which the amount is withdrawn or repaid. If the reepayment with interest is made on or before the tenth of month, no interest shall be payable for that month.

(5) In the case of repayment in monthly instalments, the interest under sub-rule 3 shall be calculated on the amount remaining unpaid at the end of each month from the month in which the withdrawal was made and such interest shall be payable along with the last instalment of repayment or in the month next following the month in which repayment of the last instalment is made.

(6) Where, for any reason, the amount of withdrawal or a part thereof has not been repaid, or the interest thereon has not been paid, before the closure of the account, any outstanding amount due from the depositor in this behalf shall be recovered from the amount repayable to him or to his nominee or legal heir, as the case may be, on the closure of the account.

RULE 13 PROCEDURE ON THE MINOR ATTAINING MAJORITY

(1) A minor on whose behalf an account has been opened may, on his attaining majority, continue ths account till maturity if the limit prescribed in rule 6 is not exceeded or' claim at the end of the maturity period of the account the protionate amount as specified under sub-rule (3) of rule 9, if he does not continue the account.

(2) Where an account is continued under sub-rule (1), the ex-minor shall give a declaration as follows :— "I hereby declare that the Post Office Savings Bank General Rules 1981 and the Post Office Cumulative Time Deposit Rules 1981 have been read by/to me and that I accept the said rules and all such amendments thereto as may be issued, from time to time, as binding on me. I further declare that the total deposits made / to be made by me in my Cumulative Time Deposit account/accounts including deposits in the accounts opened by me in my own name as a minor shall not exceed one lakh and twenty thousand rupees".

RULE 13A DISCONTINUANCE OF 10-YEAR ACCOUNT

1 -(1) On and from the 1st April, 1986, a 10-year account operated through the Post Office Savings Bank under these rules shall be discontinued and no person shall open any such account on and from that date.

(2) Notwithstanding anything contained in sub-rule (1), the provisions of the foregoing rules shall apply to any 10-year account opened under these rules before the 1st day of April, 1986.

RULE 14 REPEAL AND SAVING

(1) The Post Office Savings Bank cumulative Time Deposits) Rules, 1959, are hereby repealed.

(2) Notwithstanding such repeal,—

(a) anything done or any action taken under the rules so repealed shall be

deemed to have been done or taken under thte corresponding provisons of these rules or the Post Office Savings Bank General Rules, 1981;

(b) the provisions of the rules so repealed shall apply to a 5-Year account opened before the 1st day of November, 1973.

TABLE 1 (See Rules 9 and 10) Amounts repayable on maturity on 10-Year Cumulative Time Deposit Accounts Period during which account is or has been opened Amount (Rs.) repay. able on an account of Rs. 10 denomination From 2.1.1959 to 31.3.1959 (both dates inclusive) 1457 From 1-4-1959 to 31.3.1960 1461 From 1.4.1960 to 31.3.1961 1465 From 1.4.1961 to 31.3.1962 1471 From 1.4.1962 to 31.3.1963 1477 From 1.4.1963 to 31.3.1964 1484 From 1.4.1964 to 22.7.1964 1495 From 23.7.1964 to 22.7.1965 1505 From 23.7.1965 to 22.7.1966 1510 From 23.7.1966 to 22.7.1967 1521 From 23.7.1967 to 22.7.1968 1533 From 23.7.1968 to 22.7.1969 1546 From 23.7.1969 to 22.7.1970 1560 From 23.7.1970 to 22.7.1971 1576 From 23.7.1971 to 22.7.1972 1593 From 23.7.1972 to 22.7.1973 1611 From 23.7.1973 to 22.7.1974 1630 From 23.7.1974 to 30.9.1979 1650 From 1.10.1979 onwards 1693.20 Note .—The amounts repayable on maturity on accounts of other denominations shall be proportionate to ths amounts specified above. TABLB 2 (See Rules 9 and 10) Amounts repayable on maturity of 15-Year Cumulative Time Deposit Accounts Period during which account is or has been opened Amount (Rs.) repayable on an account of Rs 10 denomination. 1 2 From 2.1.1959 to 31.3.1959 (both dates inclusive) 2533 From 1.4.1959 to 22.7.1959 2541 From 23.7.1959 to 22.7.1960 2550.55 From 23.7.1960 to 22.7.1961. 2562.30 From 23.7.1961 to 22.7.1962 2576.20 From 23.7.1962 to 22.7.1963 2590.40 From 23.7.1963 to 22.7.1964 2605.90 From 23.7.1964 to 22.7.1965 2622.60 1 2 From 23-7-1965 to 22-7-1966 From 23-7-1966 to 22-7-1967 From 23-7-1967 to 22-7-1968 From 23-7-1968to 22-7-1969 From 23-7-1969 to 22-7-1970 From 23-7-1970 to 22-7-1971 From 23-7-1971 to 22-7-1972 From 23-7-1972 to 22-7-1973 From 23 7-1973 to 31-10-1973 2640.50 2660.80 2682.30 2705.50 2729.30 2743.70 2759.60 2776.80 2781.50 Note :—The amounts repayable on maturity on accounts of other denominations shall be proportionate to the amounts specified above. TABLE 3 (See Rules 9 and 10) Period during which the account is or has been opened Amount (Rs.) for an account of Rs. 10 denomination 10-Year Account 15-Year Account Before 1-4-1970 On or after 1-4-1970 but before 1-4-1974 On or after 1-4-1974 but before 23-7-1974 On or after 23-7-1974 but before 1-10-1979 On or after 1-10-1979 1450 1530 1570 1650 1693.20 2500 2655 Note:—The amount for an account of any other denomination shall be proportionate to the amount specified above. TABLE 4 (See rule 10) Amount payable to legal heir or nominee on the death of the depositor in 10-year or 15 -year Cumulative Time Deposit account opened before the 1st April, 1970 Number of deposits made Amount (Rs.) for denomination of Rs. 10/- 1 2 1 to 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The deposits made 121.14 131.33 141.53 151.80 162.04 172.36 182.64 193.01 203.32 213.75 224.11 234.48 245.00 1 1 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 255.42 265.99 276.46 287.11 297.61 308.33 318.89 329.68 340.28 351.15 361.81 372.76 383.47 394.51 405.28 416.40 427.22 438.44 449.31 460.63 471.99 483.42 494.91 505.97 517.56 529.22 540.94 552.73 564.58 576.50 588.50 600.56 612.70 624.91 637.20 650.00 663.48 674.94 687.47 699.54 711.64 723.79 735.98 748.22 760.30 772.62 784.99 797.52 809.99 822.50 835.05 847.65 860.30 873.00 885.75 898.54 911.38 924.27 937.21 950.91 963.11 976.20 989.34 1002.53 1015.77 1 2 90 1029.07 91 1042.41 92 1055.81 93 1069.26 94 1082.78 95 1096.30 96 1109.77 97 1123.45 98 1137.19 99 1150.57 100 1164.41 101 1178.31 102 1192.26 103 1206.29 104 1220.34 105 1234.47 106 1248.65 107 1262.90 108 1277.67 109 1292.08 110 1306.47 111 1320.96 112 1335.51 113 1350.12 114 1364.80 115 1379.52 116 1394.32 117 1409.18 118 1424.09 119 1439.07 120 1450.00 121 1465.87 122 1481.73 123 1497.60 124 1513.47 125 1529.34 126 1545.20 127 1561.07 128 1576.94 129 1592.80 130 1608.67 131 1624.54 132 1640.40 133 1656.76 134 1673.12 135 1689.48 136 1705.84 137 1722.20 138 1738.56 139 1754.92 140 1771.28 141 1787.64 142 1804.00 143 1820.36 144 1836.72 145 1854.06 146 1871.39 147 1888.73 148 1906.06 149 1923.40 150 1940.73 151 1958.07 152 1975.40 153 1992.74 1 2 154 2010 07 155 2027.41 156 2044.74 157 2063.14 158 2081.55 159 2099.95 160 2118.36 161 2136.76 162 2155.16 163 2173.57 164 2191.97 165 2210.38 166 2228.78 167 2247.18 168 2265.59 169 2285.12 170 2304.66 171 2324.19 172 2343.73 173 2363.26 174 2382.79 175 2402.33 176 2421.86 177 2441.40 178 2460.93 179 2480.46 Note:—The a mounts will be proportionate for other deneminnations. TABLE 5 (See rule 10) Amount payable to legal heir or neminee on the death of the depositor in 10-year or 15-year Cumulative Time Deposit account opened on or after the 1st April, 1970 but before the 1st April, 1974. Number of deposits made Amount Rs. for denomination of Rs. 10/- 1 2 1 to 11 The deposits made 12 121.63 13 131.93 14 142.26 15 152.63 16 163.02 17 173.46 18 183.92 19 194.42 20 204.96 21 215.54 22 226.16 23 236.81 24 247.50 25 258.26 26 269.07 27 279.92 28 290.83 1934 1 2 93 1118.39 94 1132.74 95 147.14 96 1161.76 97 1176,36 98 1191.02 99 1205,74 100 1220,52 101 1235.36 102 1250.26 103 1265.22 104 1280.24 105 1295.32 106 1310.47 107 1325.68 108 1340.94 109 1356.28 110 1371.67 III 1387.131 112 1402.65 113 1418.24 114 1433.88 115 1449.59 116 1465.37 117 1481.21 118 1497.11 119 1513.09 120 1530.00 121 1546.02 122 1562.32 123 1578.76 124 1595.2 125 1611.7 126 1628.38 127 1645.11 128 1661.84 129 1678.72 130 1695.59 131 1712.62 132 1729.64 133 1746,81 134 1763.98 135 1781.31 136 1798.63 137 1816.10 138 1833.57 139 1851.20 140 1868.83 141 1886.61 142 1904.38 143 1922.32 144 1940.25 145 1958.34 146 1976.43 147 1994.68 148 2012.95 149 2031.34 150 2049.73 151 2068.31 152 2086.87 153 2105.60 154 2124.38 155 2143.22 156 2162.10 157 2181.57 158 2201.04 1 2 29 301.78 30 312.79 31 323.85 32 334.96 33 346.13 . 34 357.85 35 368.64 36 379.98 37 391.38 QO 402.85 J& 414.38 39 40 425.97 437.62 41 42 449.35 461.14 43 473.00 44 484.93 45 496.93 46 509.01 47 521.16 48 533.49 49 546.90 50 558.29 51 570.87 52 583.54 53 596.31 54 609.16 55 621.98 56 635.02 57 648.15 58 661.39 59 675.00 60 687.34 61 700.01 62 712.72 63 725.49 64 738.30 65 751.17 66 764.08 67 777.05 ^0 60 790.06 69 803.13 70 816.29 71 829.50 72 842.72 73 74 856.00 869.32 75 76 882.70 77 896.13 78 909.61 923.14 79 80 936.73 81 950.37 82 964.06 83 977.81 84 991.73 85 1005.58 86 1019.48 87 1033.46 88 1047.47 89 1061.55 90 1075.68 91 1089.86 92 1104.00 1 2 59 2220.70 160 2240.46 161 2260.20 162 2280.16 163 2300.19 164 2320.22 165 2340.46 166 2360.79 167 2381.10 168 2401.63 169 242.2.25 170 2442.86 171 2463.68 172 2484.60 173 2505.50 174 2526.63 175 2547.85 176 2569.04 177 2590.47 178 2611.99 179 2633.49 Note :- The amounts will be proportionate for other deneminations. TABLE 6 (See rule 10) Amount payable to legal heir or nominee on the death of depositor in a 10-year Cumulative Time Deposit account in respect of accounts opened on or after the 1st April, 1974 but before the 23rd July, 1974. Number of deposits Amount (Rs.) for denomination of Rs. 10/- 1 2 1 to 11 The deposits made 12 122.60 13 133.00 14 143.50 15 154.00 16 164.60 17 175.20 18 185.80 19 196.40 20 207.10 21 217.90 22 228.60 23 239.50 24 250.30 25 261.20 26 272.10 27 283.10 28 294.10 29 305.10 30 316.20 31 . 327.30 32 338.50 33 349.70 34 360.90 35 372.20 36 383.50 37 394.90 38 406.30 1 2 39 417.80 40 429.20 41 440.80 42 452.40 43 464.00 44 475.60 45 487.30 46 499.10 47 510.90 48 522.70 49 535.00 50 547.30 51 559.70 52 572.20 53 584.70 54 597.40 55 610.20 56 622.90 57 635.80 58 648.90 59 661.80 60 675.00 61 687.80 62 700.70 63 713.70 64 726.70 65 739.70 66 752.90 67 766.10 68 779.30 69 792.60 70 806.00 71 819.50 72 833.00 73 846.60 74 860.30 75 874.00 76 887.80 77 901.60 78 915.80 79 929.80 80 943.90 81 958.10 82 972.30 83 986.60 84 1000.90 85 1015.40 86 1029.90 87 1044.80 88 1059.50 89 1074.20 90 1089.10 91 1104.00 92 1118.90 93 1134.30 94 1149.50 95 1164.70 96 1180.00 97 1195.40 98 1211.20 99 1226.80 100 1242.40 101 1258.10 102 1274.30 103 1290.20 104 1306.20 1 2 105 1322.20 106 1338.80 107 1355.00 108 1371.40 109 1387.70 110 1404.20 111 1420.80 112 1437.40 113 1454.20 114 1471.00 115 1487.90 116 1504.40 117 1520.90 118 1538.00 119 1555.30 Note:— The amounts will be proportionate for other denominations. TABLE 7 (See rule 10) Amount payable to legal heir or nominee on the death of a depositor in a 10-year Cumulative Time Deposit recount in respect of accounts opened on or after the 23rd July, 1974, but before the 1st October, 1979. Number of deposits 1 Amount (Rs.) for denomination of Rs 10/-2 1 to 11 The deposits made 123.30 12 133.80 13 144.40 14 155.00 15 165.70 16 176.40 17 187.20 18 198.00 19 208.90 20 219.80 21 230.80 22 241.80 23 252.80 24 263.90 25 275.00 26 286.20 27 297.50 28 308.70 29 320.10 30 331.50 31 342.90 32 354.40 33 365.90 34 377.50 35 389.10 36 400.80 37 412.50 38 424.30 39 436.10 40 1 2 41 448.00 42 459.90 43 471.90 44 483.90 45 496.00 46 508.10 47 520.30 48 532.50 49 544.80 50 557.20 51 569.60 52 582.00 53 594.50 54 607.10 55 619.70 56 632.40 57 645.10 58 657.90 .59 670.70 60 683.60 61 696.80 .62 710.20 63 723.60 64 737.10 65 750.60 66 764.30 67 777.80 68 791.60 69 805.50 70 819.50 71 833.50 72 847.70 73 861.90 74 876.20 75 890.60 76 905.10 77 919.70 78 934.30 79 949.10 80 963.90 81 978.80- 82 993.80 83 1008.90 84 1024.20 85 1039.50 86 1054.80 87 1070.30 88 1085.90 89 1101.60 90 1117.40 91 1133.60 92 1149.60 93 1165.70 94 1181.90 95 1198.10 96 1214.50 97 1231.00 98 1247.60 99 1264.70 100 1281.50 101 1298.50 102 1315.50 103 1332.60 1 2 104 1349.90 105 1367.70 106 1385.10 107 1402.70 108 1420.40 109 1438.20 110 1456.60 111 1474.70 112 1493.40 113 1511.60 114 1530.60 115 1549.10 116 1567.70 117 1587.10 118 1605.90 119 1625.50 Note :— The amounts will be proportionate for other denominations. TABLE, 8 (See rule 10) Amount payable to legal heir or nominee on the death of a depositor in a 10-Year Cumulative Time Deposit account opened on or after the 1st October, 1979. Number of deposits Amount (Rs.) for denomination of Rs. 10 1 2 1 to 11 The deposits made 12 123.35 13 133.90 14 144.50 15 155.15 16 165.85 17 176.60 18 187.40 19 198.20 20 209.10 21 220.05 22 231.00 23 242.05 24 253.10 25 264.20 26 275.40 27 286.60 28 297.85 29 . 309.20 30 320.55 31 331.95 32 343.40 33 354.90 34 366.50 35 378.10 36 389.75 37 401.45 38 413.20 39 425.05 40 436.90 41 448.80 42 460.80 43 472.80 1 2 44 484.90 45 497.00 46 509.20 47 521.40 48 533.70 49 546.15 50 558.65 51 571.20 52 583.85 53 596.55 54 609.30 55 622.10 56 635.00 57 647.95 58 661.00 59 674.10 60 687.25 61 700.60 62 714.05 63 727.60 64 741.25 65 754.95 66 768.70 67 782.55 68 796.50 69 810.55 70 824.65 71 838.85 72 853.15 73 867.55 74 882.00 75 896.55 76 911.20 77 925.90 78 940.75 79 955.65 80 970.65 81 985.75 82 1000.95 83 1016.20 84 1031.60 85 1047.05 86 1062.65 87 1078.30 88 1094.05 89 1109.95 90 1125.90 91 1141.95 92 1158.15 93 1174.40 94 1190.80 95 1207.25 96 1223.85 97 1240.90 98 1258.10 99 1275.45 100 1292.90 101 1310.50 102 1328.20 103 1346.00 104 1363.95 105 1382.05 106 1400.25 107 1418.60 108 1437.10 109 1456.20 1 2 110 1475.45 III 1494.85 112 1514.45 113 1534.15 114 1554.05 115 1574.10 116 1594.30 117 1614.65 118 1635.20 119 1658.85 Note :— The amounts will be proportionate for other denominations.

NATIONAL SAVINGS SCHEME RULES, 1987

In exercise of the powers conferred by

section 15 of the Government Savings Banks Act, 1873 (5 of 1873), the Central Government hereby makes the following rules, namely.-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the National Savings Scheme Rules, 1987.

(2) They shall come into force on the 1st day of April, 1987.

RULE 2 DEFINITIONS

In these rules, unless the context otherwise requires,-

(a) "account" means a savings account opened by a depositor in accordance with the Scheme;

(b) "Act" means the Government Savings Banks Act, 1873 (5 of 1873);

(c) "depositor" means,-

(i) an individual, or

(ii) a Hindu undivided family, or

(iii) an association of persons or a body of individuals consisting in either case,

only of husband and wife governed by the system of community of property in

force 2 [in the State of Goa and the Union territory of Dadra and Nagar Haveli and the Union territory of Daman and Diu],

by whom, or on whose behalf, money is deposited in an account, and deposit means money so deposited.

3 [(d) "post office" means any Head Post Office, or any sub-post office which is authorised to open an account under these rules;]

(e) "scheme" means the National Savings Scheme as contained in these rules;

(f) "year" means a year commencing on 1st day of April;

(g) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981, shall have the meanings respectively assigned to them in these rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981, AND THE POST OFFICE SAVINGS ACCOUNT RULES, 1981

The provisions of the Post Office Savings Bank General Rules, 1981 , and the Post Office Savings Account Rules, 1981 , so far as may be, apply in relation to matters for which no provision has been made in these rules.

RULE 4 OPENING OF ACCOUNT

A depositor may open not more than one account under the Scheme.

RULE 5 DEPOSITS AND WITHDRAWALS

(1) No account shall be opened with deposit of less than one hundred rupees.

(2) All deposits shall be made in multiples of one hundred rupees.

4 [(3) The total deposits in a year shall not exceed forty thousand rupees.]

(4) Withdrawal will be permitted only once in a year, provided that the amount of such withdrawal shall not exceed the balance at the end of the fourth preceding financial year, less withdrawals, if any, already made.

5 [(5) No deposits shall be made under the Scheme on or after the 1st day of October, 1992: Provided that the deposits made on or after 1st day of April, 1992, and before the 1st day of October, 1992, may either be withdrawn by the depositor or transferred at his option, to the account opened by him under the National Savings Scheme, 1992 .]

RULE 6 INTEREST ON DEPOSITS

(1) All deposits made in accordance with the Scheme shall bear interest at such rate as may be notified 6 by the Central Government in the Official Gazette from time to time: 7 [Provided that where the deposits made on or after the 1st day of April, 1992, and before the 1st day of October, 1992, are withdrawn in accordance with the provisions of sub-rule (5) of rule 5- , the interest on such withdrawal shall be at the rate of 5.5 per cent per annum and where the depositor opts to transfer the said deposits to the account opened by him under the National Savings Scheme, 1992 , the interest on such deposit shall be at the rate of 11 per cent per annum.]

8 [(2) The interest notified under sub-rule (1) shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year.]

(3) Where the interest contains part of a rupee and if such part is fifty paise or more it shall be increased to one complete rupee and if such part is less than fifty paise, it shall be ignored.

RULE 7 PASS BOOK

(1) On opening an account, the depositor shall be given a Pass Book bearing the number of his account, his name, address and entry of his first deposit duly initialled by an authorised official of the Post Office.

(2) The Pass Book shall ordinarily be presented for all deposits and withdrawals.

RULE 8 CONFIRMATION OF BALANCE

The depositor shall present his Pass Book as soon as possible after the 31st day of March every year to the Post Office where his account stands for addition of interest and confirmation, of balance at his credit.

RULE 9 CLOSURE OF ACCOUNT

Closure of the account will be permitted on expiry of three years from end of the year in which the last deposit was made, provided that in the event of death of account holder, account may be closed at any time after his death.

RULE 10 POWER TO RELAX

Where the Central Government is satisfied that the operation of any of the provisions of these rules causes undue hardship to the depositor, it may, by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

NATIONAL SAVINGS SCHEME RULES, 1992

15th September, 1992

In exercise of the powers conferred by

section 15 of the Government Savings Banks Act, 1873(5 of 1873), the Central Government hereby makes the following rules, namely:-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the National Savings Scheme Rules, 1992. (2) They shall come into force on the 1st day of October, 1992.

RULE 2 DEFINITIONS

In these rules, unless the context otherwise requires:-

(a) "account" means a savings account opened by a depositor in accordance with the Scheme;

(b) "Act" means the Government Savings Banks Act, 1873- (5 of 1873);

(c) "depositor" means:-

(i) an individual, or

(ii) a Hindu undivided family, or

(iii) an association of persons or a body of individuals consisting in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union Territories of Dadra and Nagar Haveli

and Daman and Diu, by whom, or on whose behalf money, is deposited in an account and deposit means money so deposited;

(d) "post office" means any Head Post Office, or any Sub-Post Office which is authorised to open an account under these rules;

(e) "Scheme" means the National Savings Scheme as contained in these rules;

(f) "year" means a year commencing on 1st day of April;

(g) words and expressions used herein and not defined in the Post Office Savings Banks General Rules, 1981 , shall have the meanings respectively assigned to them in these rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANKS GENERAL RULES, 1981, AND THE POST OFFICE SAVINGS ACCOUNT RULES, 1981

The provisions of the Post Office Savings Banks General Rules, 1981 , and the Post Office Savings Account Rules, 1981 , so far as may be, apply in relation to matters for which no provision has been made in these rules.

RULE 4 OPENING OF ACCOUNT

(1) A separate account shall be opened in a Post Office by every depositor for each yeah

(2) In the case of depositors being individuals, an account may be opened by:-

(a) a single adult; or

(b) two adults jointly, the amount due on the account being payable-

(i) to both jointly or survivor; or

(ii) to either of them or survivor;

(c) a guardian on behalf of a minor.

RULE 5 DEPOSITS

(1) No account shall be opened with deposit of less than one hundred rupees.

(2) All deposits shall be made in multiples of one hundred rupees.

(3) The deposits made by a depositor in the National Savings Scheme, 1987, on or after the 1st day of April, 1992, but before the 1st day of October, 1992, and in respect of which he has exercised option under that Scheme to transfer the said deposits to an account opened by him under this Scheme shall be deemed to be deposits under this Scheme and all the provisions of this Scheme, shall apply accordingly.

3 (4) NO DEPOSITS SHALL BE MADE UNDER THE SCHEME ON OR AFTER THE 1ST DAY OF NOVEMBER, 2002

RULE 6 INTEREST ON DEPOSITS

4 "(1) (i) For the period commencing from the 5 ["1st day of October, 1992"] to the 14th day of January, 2000, the interest at the rate of eleven per cent per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year".

R2"(ii) For the period commencing from the 15th day of January, 2000 but before the 1st day of March, 2001, the interest at the rate of ten-and-a-half per cent per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year.

6 (iii) For the period commencing from the 1st day of March, 2001 but before the 1st day of March, 2002, the interest at the rate of nine per cent. per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year.

7 (iv) On and from the 1st day of March, 2002, the interest at the rate of eight-and-a-half per cent. per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited in the account at the end of each year.

(2) Where the interest contains part of a rupee and if such a part is fifty paise or more, it shall be increased to one complete rupee and if such part is less than fifty paise, it shall be ignored.

RULE 7 WITHDRAWAL

(1) The interest credited in the account may be withdrawn at any time at the option of the depositor.

(2) The deposits may be withdrawn after the expiry of four years from the end of the year in which the account was opened, at the option of the depositor.

(3) The deposits or interest amount not withdrawn after it becomes due, will continue to earn 8 "interest at the rate as specified in Rule 6" up to the date of its withdrawal.

RULE 8 PASS BOOK

(1) On opening an account, the depositor, shall be given a Pass Book bearing the number of his account, his name, address and entry of his first deposit duly initialled by an authorised official of the Post Office.

(2) The Pass Book shall ordinarily be presented for all deposits and withdrawals.

RULE 9 CONFIRMATION OF BALANCE

The depositor shall present his Pass Book as soon as possible after the 31st day of March every year to the Post Office where his account stands for addition of interest and confirmation of balance amount at his credit.

RULE 10 CLOSURE OF ACCOUNT

Closure of the account will be permitted on expiry of four years from end of the year in which the account was opened: Provided that in the event of death of depositor, account may be closed at any time after his death and 8 "interest at the rate as specified in Rule 6" will be admissible in such cases also up to the date of withdrawal of the amount.

RULE 11 POWER TO RELAX

Where the Central Government is satisfied that the operation of any of the provisions of these rules causes undue hardship to the depositor, it may, by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.

POST OFFICE RECURRING DEPOSIT RULES, 1981

17th December, 1981

G.S.R 666(F).—In exercise of the powers conferred by section 15 of the Government Savings Banks Act, 1873 (5 of 1873), the Central Government hereby makes they following rules, namely :—

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Post Office Recurring Deposit Rules, 1981 .

(2) They shall come into force on the 1st day of April, 1982.

RULE 2 DEFINITIONS

—In these rules, unless the context otherwise requires,— (a) "account" means a recurring Deposit Account; (b) "Table" means a Table appended to these rules;

(c) "year" means a year commencing on the date of the first deposit in an account:

(d) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981, have 'the meanings respectively assigned to them in those rules.

RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981

-For matters not provided in these rules, the provisions of the Post Office Savings Bank General Rules. 1981 shall apply.

RULE 4 PERSONS WHO CAN OPEN ACCOUNT

:— (1) An account may be opened by—

(a) a single adult; or

(b) two adults jointly, the amount due on the account being payable— (i) to both jointly or survivor, or (ii) to either of them or survivor; or (c) a guardian on behalf of a minor or a person of unsound mind; or (d) a minor who has attained the age of ten years, in his own name.

(2) A depositor can have more than one account in his name or jointly with another.

RULE 5 MATURITY PERIOD

:—Maturity period of an account shall be five years.

RULE 6 DEPOSITS

:— (1) Subject to the provisions of sub-rule (2) to (4) and rule 10 , a depositor shall make sixty monthly deposits in an account.

1 "(2) Interest shall be allowed only in sums of complete rupees and shall be rounded off to nearest rupee and for this purpose any amount of 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored.".

(3) The first monthly deposit shall be made at the time of opening the account and the amount of such deposit shall be the denomination of the account. Each subsequent monthly deposit shall be made before the end of the calendar month and shall be equal to the first deposit.

(4) Where a deposit is made by means of a cheque, pay order or demand draft, the date of its presentation to the Post Office Savings Bank shall be deemed to be the date of deposit.

RULE 7 DEFAULTS IN DEPOSITS

10000 (1) If there are not more than four defaults in monthly deposits, the depositor may, at its option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted instalments during the extended period. 19 20 21 Amount, inclusive of interest, payable on an account opened on or after 1st March, 2002 and continued, with monthly deposits beyond the maturity period or maturity period and extended under sub-rule (1) of Rule 7. Amount, inclusive of interest, repayable on an account opened on or after 1st March, 2002 and continued, without any fresh monthly deposits, beyond the maturity period or maturity period as extended under sub-rule (1) of Rule 7.

(2) If there are more than four defaults, the account shall be treated as discontinued. Revival of the account shall be permitted only within a period of two months from the month of fifth default. Interest at the rate of ten paise for every five rupee of a defaulted instalment for each month of default shall also be paid along with such deposit in lump sum and an account in which defaulted instalments are so deposited, shall not be treated as discontinued.

RULE 8 ADVANCE DEPOSITS

(1) In an account which has not become a discontinued account under rule 7 , leposits for not less than six monthly instalments may be made in advance in any calendar month at the option of the depositor and rebate on such deposits shall be admissible as follows :— Advance deposits Rebate for an account of Rs. 5/- denomination

(i) Six or more deposits but net exceeding eleven deposits made in any calendar month.

(ii) Twelve or more deposits made in any calendar month. Two rupees for every twelve deposits and fifty paise for balance, if any, of not less than six deposits.

(2) For accounts of other denominations, the amounts of rebate shall be proportionate to the rates specified in subrule (1).

RULE 9 REPAYMENT ON MATURITY

(1) (a) In the case of an account in which sixty monthly deposits have been made during its maturity period or maturity period as extended under sub-rule (1) of rule 7 , the depositor shall be entitled at the end of such period to receive the amount, inclusive of interest, specified in the Schedule below :— SCHEDULE Period during which account is or has been opened Amount (Rs) repayable on an account of Rs. 10 denomination (Rs) repayable on an account of Rs. 10 denomination From 1-4-1970 to 22-7-1970 (both dates inclusive) 715 From 23-7-1970 to 22-7-1971 720 From 23-7-1971 to 22-7-1972 726 From 23-7-1972 to 22-7-1973 733 From 23-7-1973 to 22-7-1974 741 From 23-7-1974 to 30-9-1974 754 From 1-10-1974 to 30-9-1975 756 From 1-10-1975 to 30-9-1976 758 From 1-10-1976 to 30-9-1979 760 From 1-10-1979 onwards 778.10 4 "From 15-1-2000 to 28-2-2001 (both dates inclusive) ...789.60 5 [From 1.3.2002 to 28.2.2003 (both dates inclusive) ... 748.49 From 1.3.2003 onwards .... 728.90";]

(b) amounts repayable, inclusive of interest, on accounts of other denominations shall be proportionate to the amounts specified in the Schedule.

(2) (a) Where an account has become discontinued or where the defaults in monthly deposit in an account have not been rectified during its maturity period or maturity period as extended under sub-rule (1) of rule 7 , the depositor shall be entitled, on the expiry of such period, to receive an amount, inclusive of interest, which shall be in the same proportion to the amount specified in the Schedule below as the number of monthly deposits made in the account bears to sixty :— SCHEDULE Period during which the account is or has been opened Amount Rs. 10 denomination (Rs) for an account of Rs. 10 denomination From 1-4-1970 to 14-1-1971 (both dates inclusive) 700 From 15-1-1971 to 31-3-1974 710 From 1-4-1974 to 22-7-1974 720 From 23-7-19.74 to 30-9-1976 750 From 1-10-1976 to 30-9-1979 760 From 1-10-1979 onwards 778.10 6 ["From 15-1-2000 to 28-2-2001 (both the dates inclusive) ...789.60 7 ["From 1.3.2002 to 28.2.2003 (both dates inclusive) .... 748.49 "From 1.3.2003 onwards .... 728.90]

(b) The amount for an account of any other denomination shall be proportionate to the amount specified in the Schedule.

RULE 9A .

8 The holder of an account may prematurely close the account after three years from the date of opening of the account provided that interest at the rate applicable from time to time to post office savings account shall be payable on such premature closure of account. However, no premature closure of account is permissible until the period for which the advanced deposits made under Rule 8 is over.

RULE 10 ACCOUNTS CONTINUED BEYOND MATURITY PERIOD

(1) Notwithstanding anything contained in the foregoing rules, if sixty monthly deposits have been made in an account curing its maturity period or maturity period as extended under sub-rule (1) of rule 7 , the depositor may, at his option, continue the account for a further period upto maximum of five years and make monthly deposits during such further period. Each such monthly deposit shall be equal to the first deposit in the account. The provisions of rules 7 and 8 shall be applicable to such deposits also.

(2) An account continued under sub-rule (1) may, at any time, be closed by the depositor and on such closure, he shall be entitled, to receive repayment of the amount, inclusive of interest, as follows :—

(a) If the account is closed after being continued under alb-rule (1) fora completed number of years, the depositor shall be entitled to receive the amount as specified in 9 ["Tables 1, 2, 11, 13, 17, 20, 22, 26, 29, 32, 35, 38 or 41"] as the case may be.

(b) If the account is close after being continued under sub-rule (1) for a period of less than one year, the depositor shall be entitled to receive the amount as specified under subnile (1) of rule 9 together with (i) interest on such amount for the complete months for which the account was continued and (ii) the amount of deposits made by him during the period for which the account was continued.

(c) If the account is closed after being continued under sub-rule (1) for a completed number of years not exceeding 4 and for a part of a year thereafter, the depositor shall be entitled to receive (i) the amount as specified in 9 ["Tables 1, 2, 11, 13, 17, 20, 22, 26, 29, 32, 35, 38 or 41" ], as the case may be, relevant to the completed number of years, (ii) interest on such amount for the complete months in the partial year, and (iii) the amount of deposits made by him during the partial year.

(d) The interest referred to in clause (b) and (c) shall be calculated at the rate applicable, from time to time to savings accounts of the type of single or joint account.

RULE 11 RETENTION OF AMOUNT OF REPAYMENT BEYOND MATURITY PERIOD

(1) Notwithstanding anything contained in the foregoing rules, if sixty monthly deposits have been made in an account during its maturity period or maturity period as exented under sub-rule (1) of rule 7, the depositor may, at his option, continue the account and retain in it the amount of repayment due under sub-rule (1) of rule 9 for a further period upto a maximum of five years, without mating any fresh deposits during such further period.

(2) On closure of the account at the expiry of the further peiod referred to in sub-rule (1). the depositor shall be entitled to receive repayment as follows :—

(a) If the further period is less The amount due under subruled) than one year. of rule 9 together with interest on such amount for the complete months in the further period. (b) If the further period consists The a mount specified in 10 ['Tables 3, 4, 12, 14, 18, 21, 23, 27, 30, 33, 36, 39 or 42"] of completed years only. or 4 as the case may be. (c)If the further period consists The amount specified in 10 'Tables 3, 4, 12, 14, 18, 21, 23, 27, 30, 33, 36, 39 or 42" of completed year not as the case may be, exceeding four and a part relevant to the number of completed of the year thereafter. years together with interest on such amount for the complete months in the partial year.

(3) The interest specified in clauses (a) and (c) of subrule (2) shall be calculated at the rate applicable from time to time to savings accounts of the type of single or joint account.

RULE 12 REPAYMENT OF DEATH OF DEPOSITOR

(1) Subject to sub-rule (2), on the death of the depositor in a single account or of both the depositors in a joint account, no further deposits shall be made in the account and the procedure specified in rule 13 of the Post Office Savings Bank General Rules, 1981 shall apply. For the purpose of such procedure, the amount due for repayment on the account shall be deemed to be as follows :— (a)If sixty monthly deposits The amount specified in have been made and the subrule (1) of rule 9. account has not been continued under sub-rule (1) of rule 10 or rule 11. (b) If less than sixty monthly deposits have been made in the account and; (d) If the nominee or legal heir The amount specified in sub-rule (2) desires to receive the of rule 9, subject to the provisions amount due, on the expiry of rule 13. of maturity period or extended maturity period under sub-rule (1) of rule 7; or (ii) If the pominee or legal heir The amount specified in 11 "Tables 5, 6, 7, 8, 9, 10, 15,16,19, 24, 25, 28, 31, 34, 37, 40 or 43" desires to receive the amount as the ease may be, due at any time earlier than subject to the provisions of rule 13. under (i) above. (c)If the account has been continued The amount specified in subrule (2) under sub-rule (1) of rule 10 or rule 11. of rule 10 or rule 11, as the case may be.

(2) Notwithstanding anything contained in sub-rule (1), if there are only one or two surviving nominees or legal heirs, he or they may continue the account and receive repayment of the amount, inclusive of interest, in the manner provided for the these rules, as if the account had been opened by him or them.

(3) On the death of a depositor in a joint account, the surviving depositor shall be treated as the sole owner of the account and he may deal with it in any manner provided for in these ' rules as if he had opened the account in 'his name. If less than sixty monthly deposits have been paid into the account, he shall also have the option to close the account immediately and receive the amount specified in 11 "Tables 5, 6, 7, 8, 9, 10, 15,16,19, 24, 25, 28, 31, 34, 37, 40 or 43" , as the case may be.

(4) On the death of the guardian of a minor or lunatic depositor, the new guardian may close the account and claim the amount as specified in sub-rule (1) or (2) of rule 9 or sub-rule (2) of rule 10 or sub-rule (2) of rule II or 11 "Tables 5, 6, 7, 8, 9, 10, 15,16,19, 24, 25, 28, 31, 34, 37, 40 or 43" , as the case may be, if the same is required in the interest of such depositor.

RULE 13 REPAYMENT OF FULL MATURITY VALUE ON THE DEATH OF THE DEPOSITOR IN CERTAIN CASES (PROTECTED SAVINGS SCHEME.)

(1) Where the depositor in a single account or the surviving depositor in a joint account dies during the maturity period of an account or its extention under sub-rule (1) of rule 7, the legal heir or nominee, as the case may be, of such depositor, shall be entitled to receive the amount specified in sub-rule (1) of rule 9 as if the depositor had paid all the sixty monthly deposits, subject to the following conditions namely :—

12 (i) The payment of full maturity value under this rule shall be restricted to the maturity value of an account of denomination of fifty rupees

(ii) The account has not become a discontinued account.

(iii) The period from the date of opening the account to the date of death of the

depositor or surviving depositor, as the case may be, is not less than two years.

(iv) The age of the depositor or depositors, as the case may be, at the time of opening the account is not less than 18 years and not more than 53 years. At the time of opening the account or thereafter, every depositor shall give a declaration in writing to the Post Office Savings Bank indicating his age at the time of opening the account. Where such declaration has not been given by the depositor or depositors, the claimant shall furnish a certified copy of the School Leaving Certificate of the deceased depositor or a declaration on a plain paper as to the age of deceased depositor at the time of opening the account duly attested by a Gazetted Officer, a Magistrate (including Honorary Magistrate), a member of Parliament or of a Legislature (including the Metropolitan Council for Delhi) or a Panchayat President or Pramukh.

(v) The first twenty-four monthly deposits have been made without default.

Explanation :—A defaulted instalment paid with interest specified under sub-

rule (2) of rule 7 before the death of the depositor or the surviving depositor, as the case may be, shall not be treated as a default.

(vi) The amount of defaults, if any, after twenty-four months from the date of

opening the account, together with interest on such amount at the rate specified

in sub-rule (2) of rule 7 shall be deducted from the amount payable under this rule.

(vii) No withdrawal has been made from the account during the first twenty-four months.

(viii) If a withdrawal under rule 14 has been made from the account after

expiry of twenty-four months from the date of opening of the account, any

outstanding amount of such withdrawal and the interest due on the withdrawal under rule 14 shall be recovered from the amount payable under this rule.

[** 13 *]

14 2.

(a) If a depositor or a surviving depositor has more than one account of the denominations not exceeding fifty rupees, the benefit of payment under this rule shall be available in respect of all such accounts which may be specified

by the depositor or the surviving depositor, as the case may be, subject to a maximum of the maturity value of an account of denomination of rupees fifty.

(b) If a depositor or a surviving depositor has more than one account of the denominations exceeding fifty rupees, the benefit of payment under this rule shall be available in respect of only that account which may be specified by the depositor or the surviving depositor, as the case may be, subject to a maximum of the maturity value of an account. of denomination of rupees fifty : Provided that a depositor or a suiviving depositor may, by an application to the Post

Office Savings Bank where the account is held, charge the account referred to in clause (a) or clause (b).

(c) If no account has been specified by a depositor or a surviving depositor

under clause (a) or as the case may be under clause (b), the benefit of payment

under this rule shall be admissible in respect of earlier accounts which quality for payment under this rule.

(d) Notwithstanding anything contained in clauses (a) to (c), it a depositor or a surviving depositor, has more than one account, and different nominations are made in respect of the accounts, the benefit of payment under this rule sliall be

admissible to the nominees in respect of earlier accounts which qualify for payment.

(3) The legal heir or nominee, as the case may be, shall on the death of the depositor or the surviving depositor, as the case may be, apply in the manner prescribed to the Post Office Savings Bank where the account is held, not later than one year from the date of death of such depositor. A death certificate or a certified copy thereof should be attached with such application. The claim will be sanctioned by the relevant Head Savings

Bank after verification from the 15 ["Office of the Head of the Postal Circle concerned"]that the benefit of the payment of full maturity value on death has not been previously availed of by the legal heir or nominee

of the deceased depositor 16 [***]

RULE 14 WITHDRAWAL

(1) Subject to the provisions of subrules (2) to (7), where an account has not become a discontinued account under sub-rule (2) of rule 7. one. withdrawal not exceeding fifty per cent of the deposits made in the account may be allowed after the account has been in operation for at least one year and twelve monthly deposits have been made in the account.

(2) The amount of such withdrawal shall be amultiple of five rupees. It may be repaid, at any time during the currency of the account, in one lump sum or in equal monthly instalments.

(3) Simple interest at the rate specified below shall be payable by the depositor :—

(a) For withdrawal made before 1st April, 1972—6.5 per cent per annum.

(b) For withdrawal made during the period from 1st April, 1972 to 1st March. 1975—7.2 per cent per annum.

(c) For withdrawal made the period, from 1st April, 1975 to 31st January. 1977—9.6 per cent per annum.

(d) For withdrawal made on or after 1st February, 1977—12 per cent per annum.

(4) In the case of repayment in one lump sum, interest at the rate specified in sub-rule (3) shall be calculated on the amount of withdrawal for full calendar months from the month of withdrawal to the month of repayment irrespective of the date on which the amount is withdrawan or repaid. If the repayment with interest is made on or before the 10th of a month, no interest shall be payable for that month.

(5) In the case of repayment in equal monthly instalments the amount of each instalment shall be a multiple of five rupees and the number of instalments shall not exceed the number of months remaining for maturity of the account or the post-maturity period for which the account is continued under rule 10 & 11. The interest at the rate specified in sub-rule (3) shall be calculated on the amount remaining unpaid at the end of each month from the month of withdrawal and the total amount of such interest shall be payable in lump sum along with the last instalment of repayment of the amount withdrawn or in the month next following the month in which the last instalment of the amount withdrawn is repaid.

(6) During the maturity period of an account or its extension under sub-rule (1) of rule 7 or sub-rule (1) of rule 10, the monthly instalments of repayment of withdrawl, if any, shall be payable along with the monthly deposits. If an account is continued beyond the maturity period without any fresh deposits under sub-rule (1) of rule 11, monthly instalments of repayment or withdrawal, if any, may be paid during the period of such continuance.

(7) Where, for any reason, the amount of withdrawal or a part thereof has not been re-paid, or the interest thereon has not been paid, by the depositor before the closure of the account, any outstanding amount due from him in this behalf shall be recovered from the amount payable to him or to his nominee or legal heir, as the case may be on the closure of the account.

RULE 14-A MODE OF PAYMENTS

2 All transactions of recoveries, withdrawals, repayments, etc. under these rules shall be rounded off to the nearest rupee and for this purpose any amount of 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored.".

RULE 15 PROCEDURE ON THE MINOR ATTAINING MAJORITY

(1) A minor on whose behalf an account has been opened may on his attaining majority—

(a) continue the account for full maturity period or maturity period as extended under sub-rule (1) of rule 7 or for a further period under rule 10 or rule 11. as the case may be; or

(b) if he does not continue the account any longer. claim proportionate amount as specified in sub-rule (2) of rule 9 on expiry of maturity period, or the amount due under sub-rule (2) of rule 10 or subrule (2) of rule 11, as the case may be.

(2) For purpose of clause (a) of sub-rule (1) the ex-minor shall give a declaration, as follows : "I hereby declare that the Post Office Savings Bank General Rules, 1981 and the Post Office Recurring Deposit Rules. 1981 have been read by/to me and that I accept the said rules and all such amendments thereto as may be issued from time to time as hinding on me."