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Act Description : GOVERNMENT SAVINGS CERTIFICATES ACT, 1959

Act Details :-

GOVERNMENT SAVINGS CERTIFICATES ACT, 1959

46 of 1959

18th September, 1959

STATEMENT OF OBJECTS AND REASONS "The Post Office National Savings Certificates Ordinance, 1944 (42 of 1944), issued under

Section 72of the Ninth Schedule to the Government of India Act, 1935, as originally enacted and continued in force by virtue of the provisions of the India and Burma (Emergency Provisions) Act, 1940(3 and 4 Geo. 6, Ch. 33) regulates the sale and discharge of National Savings Certificates issued through the Post Office. Suggestions have been made from time lo time that as the production of legal proof of succession involves considerable delay and expense, the holders of savings certificates may be allowed the right to nominate one or more persons to receive the amounts due in respect of such certificates in the event of their death without the production of succession certificate or other proof of title. In seeking to amend that Ordinance for the above purpose, opportunity is taken to replace it by an Act of Parliament. 2. The certificates to which the Ordinance applies are at present being issued and discharged only through Post Office. It is however, becoming increasingly necessary that facilities should be provided for the sale of the certificates through agencies other than the Post Offices as well. The Bill as framed will now enable the Government to prescribe suitable authorities for the sale or discharge of the certificates." -Gaz. of Ind., Extra, 27-8-1959, Pt. II,Section 2, page 873.

An Act to make certain provisions in respect of Government Savings Certificates. BE it enacted by Parliament in the Tenth Year of the Republic of India as follows :- The Act has now been extended to the Union territories of- (1) Dadra and Nagar Haveli by Regn. 6 of 1963 (w.e.f. 1-7-1965); (2) Pondicherry by Regn. 7 of 1963 (w.e.f. 1-10-1963); (3) Laccadive, Minicoy and Amindivi Islands (Now called Lakshadweep) by Regn. 8 of 1965; (4) Goa, Daman and Diu, see S. 0. 2734 of 1962, Gaz. of Ind., 1962, Pt. II,

Section 3 (ii), Ext., page 1991.

SECTION 01: SHORT TITLE, COMMENCEMENT AND APPLICATION

(1) This Act may be called The Government Savings Certificates Act, 1959.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint1

SECTION 02: DEFINITIONS

- In this Act, unless the context otherwise requires,-

(a) "minor" means a person who is not deemed to have attained his majority under the Indian Majority Act, 1875;

(b) "prescribed" means prescribed by rules made under this Act;

(d) "transfer'' means a transfer inter vivos, and does not include a transfer by operation of law.

SECTION 03: RESTRICTIONS ON TRANSFER OF SAVINGS CERTIFICATES

Notwithstanding anything contained in any law for the time being in force, no transfer, of a savings certificate, whether made before or after the commencement of this Act, shall be valid unless it has beep made with the previous consent in writing of prescribed authority.

SECTION 04: HOLDINGS BY OR ON BEHALF OF MINORS

- Notwithstanding any provision in any law for the time being in force,-

(a) a minor may apply for and hold savings certificates and any other person may apply for and, hold savings certificates on behalf of a minor;

(b) where any savings certificate is held by or on behalf of a minor, the minor shall, whether the savings certificate was applied for and issued before or after the commencement of this Act, be bound by the provisions of this Act and of any rules made thereunder applicable to such savings certificates and by the terms of any declaration made by the applicant for the savings certificate in pursuance of the said rules.

SECTION 05: PAYMENT WHERE CERTIFICATE IS HELD BY OR ON BEHALF OF A MINOR

- Payment of the sum for the time being due on a savings certificate held by or on behalf of a minor may be made -

(a) to him personally, if he himself applied, for the savings certificate, or

(b) for the use of the minor, if the application for the savings certificate was made by any person other than the minor,-

(i) to any such person, being a parent of the minor or guardian of his property, as may be specified in that behalf in the form of application;

(ii) if no such person has been specified, to any guardian of the property of the

minor appointed by a competent court, or where no such guardian has been so

appointed, t6 either parent of the minor, or where neither parent is alive, to any other guardian of the minor.

SECTION 06: NOMINATION BY HOLDERS OF SAVINGS CERTIFICATES

(1) Notwithstanding anything Contained in any law for the time being in force, or in any disposition, testamentary or otherwise in respect of any savings certificate, where a nomination made in the prescribed manner purports to confer on any person the right to receive payment of the sum for the time being due on the savings certificate on the death of the holder thereof and before the maturity of the certificate, or before the certificate having reached maturity has been discharged, the nominee shall, on the death of the holder of the savings certificate, become entitled to the savings certificate and to be paid the sum due thereon to the exclusion of all other persons, 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 holder of the savings certificate making the nomination.

(3) Where the nominee is a minor, it shall be lawful for the holder of the savings certificate making the nomination to appoint in the prescribed manner any person to receive the sum due thereon in the event of his death during the minority of the nominee.

(4) A transfer of a savings certificate made in the prescribed manner shall automatically cancel a nomination previously made: Provided that where a savings certificate 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 shall be subject to the right of the person so holding it.

SECTION 07: PAYMENT ON DEATH OF HOLDER

(1) If the holder of a savings certificate dies and there is in force at the time of his death a nomination in favour of any person, payment of the Sum due thereon shall be made to the nominee.

(2) Where the nominee is a minor, payment of the sum due thereon shall be made-

(a) in any case where a person has been appointed to receive it under subsection (3) of section 6-, to that person, and

(b) where there is no such person, to any guardian of the property of the minor appointed by a competent court, or where on such guardian has been so appointed, to either parent of the minor, or where neither parent is alive, to any other guardian of the minor.

(3) Where the sum due on a savings certificate is payable to two or more nominees, and either or any of them dies, the sum shall be paid to the surviving nominee or nominees.

(4) 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 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 holder produced to the prescribed authority, then, if the sum due on the savings certificate does not exceed3 [such limit as may be prescribed], the prescribed authority 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.

(5) Nothing contained in this section shall be deemed to require any person to receive payment of the sum due on a savings certificate before it has reached maturity or otherwise than in accordance with the terms of the savings certificate.

SECTION 08: PAYMENT TO BE A FULL DISCHARGE

(1) Any payment made in accordance with the foregoing provisions of this Act to a minor or to his parent or guardian or to a nominee or to any other person shall be a full discharge from all further liability in respect of the sum so paid.

(2) Nothing in sub-section (1) shall be deemed to preclude any executor or administrator or other representative of a deceased holder of a savings certificate from recovering from the person receiving the same under section 7-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.

(3) Any creditor or claimant against the estate of a holder of a savings certificate may recover his debt or claim out of the sum paid under this Act 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 to the estate of the deceased.

SECTION 09: SECURITY FOR DUE ADMINISTRATION

The prescribed authority may take such security as it thinks necessary from any person to whom any money is paid under sub-section (4) of section 7-for the due administration of the money so paid and may assign the said security to any person interested in such administration.

SECTION 10: POWER TO ADMINISTER OATH

(1) For the purpose of ascertaining the right of a person claiming to be entitled to payment under sub-section (4) of section 7-, the prescribed authority may take evidence on oath or affirmation according to the law for the time being in force relating to oaths and affirmations.

(2) 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 193 of the Indian Penal Code-.

SECTION 11: PROTECTION OF ACTION TAKEN IN GOOD FAITH

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

SECTION 12: POWER TO MAKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules5to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for-

(a) the form of application for savings certificates and the issue and discharge of such certificates;

(b) the maximum limits of holdings;

(c) the conditions as to payment of interest or discount relating to any class of savings certificates and the recovery of any interest paid on any amount held in excess of the maximum limits in the same manner as an arrear of land revenue or in any other manner;

(d) the transfer and conversion of savings certificates and the fees to be levied in respect thereof;

(e) the replacement of savings certificates mutilated, lost or destroyed and the fees payable in respect thereof;

(f) the form of nominations, the manner in which and the conditions subject to which nominations may be made and the registration of nominations;

(g) the manner in which any person may be appointed for the purposes of subsection (3) of section 6-;

(h) the variation or cancellation of nominations and the registration of such variations or cancellations;

(i) the fees that may be levied for registration, variation or cancellation of nominations;

4 [(ia) the limit under sub-section (4) of section 7-;]

(j) any other matter which has to be, or may be, prescribed.

(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.

SECTION 13: REPEAL AND SAVINGS

(1) The Post Office National Savings Certificates Ordinance, 1944, is hereby repealed.

(2) Notwithstanding the repeal of the said Ordinance, any rules made or deemed to have been made or anything done or any action taken in exercise of any of the powers conferred by or under the said Ordinance shall be deemed to have been made, done or taken in exercise of the powers conferred by or under this Act, as if this Act were in force on the day on which such rules were made such thing was, done or such action was taken.

Footnotes:

1. 1st August, 1960 is the day so appointed - see Gaz. of Ind., 1960, Pt. II, Section 3 (i), page 968.

2. The Act has been applied to 12 years' Defence Savings Certificates by G.S.R. 1457, Gaz. of Ind,. 1962, Pt. II, Section 3(i). Extra, page 553; to National Savings Certificates (First Issue) - See Gaz. of Ind., 1965, Pt. II, S. 3(i), Ext., p. 129.

3. Substituted for the words "five thousand rupees" by the Government Savings Laws (Amendment) Act (56 of 1985), S. 3 (4-9-85).

4. Inserted by the Government Savings Laws (Amendment) Act (56 of 1985), S. 3, (4-9-1985).

5. For Government Savings Certificates Rules 1965, see Gaz. of Ind., 1965, Pt. II, Sec. 3(i), Ext., p. 645. For National Savings Certificates (First Issue) Rules, 1965, see the Government Savings Laws (Amendment) Act (56 of 1985), S. 3, (4-9-1985), page 132, for the Government Savings Certificates (Fixed Deposit) Rules, 1968, see Gaz. of Ind., 1968, Pt. II, Section 3(i), Ext. p. 195; for Post Office Savings Certificates Rules 1960, see Gaz. ofind., 1960, Pt. II, Section 3(i), p. 968; Indira Vikas Patra Rules, 1986 - See Gaz. ofind., 5-11-1986, Pt. II, S. 3(i), Ext., p. 2 (No. 513); Kisan Vikas Patra Rules, 1988 - See Gaz. of Ind., 23-3-1988, Pt. II, S. 3(i), Ext., p. 5 (No: 139).

NATIONAL SAVINGS CERTIFICATES (VIII ISSUE) RULES, 1989

In exercise of the powers conferred by

section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules, namely:-

RULE 1 SHORT TITLE AND COMMENCEMENT

(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); 1 [(ii) * * *]

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

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

2 [(v) * * *]

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

3 [(vii) * * *]

(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 a 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 (IV Issue) Rules, 1970, or the National SavingsCertificates (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 the 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 DENOMINATIONS IN WHICH CERTIFICATES SHALL BE ISSUED

The National Savings Certificates (VIII Issue) shall be issued in denominations of Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000, Rs. 10,000 and such other denominations as may be notified by the Central Government from time to time.

RULE 4 TYPES OF CERTIFICATES AND ISSUE THEREOF

4 "(3) Non-Resident Indians (NRIs) are not eligible to purchase the National Savings Certificates :

Provided that if a resident who subsequently becomes NR1 during the currency of maturity period, shall be allowed to avail the benefits of the certificates on maturity on a non-repatriation basis.".

RULE 5 PURCHASE OF CERTIFICATES

Certificates may be purchased for any amount.

RULE 6 PROCEDURE FOR PURCHASE OF CERTIFICATES

Any person or body specified inrule 4, desiring to purchase a certificate, shall present at a post office an application in Form 1, 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 underrule 7, except where payment is made by a cheque, pay order or demand draft, a certificate shall normally be issued immediately, and the -date of such certificate shall be the date of payment.

(2) Where payment for the purchase of the 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 be 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 OF PROCEEDS OF OLD CERTIFICATE

A holder of an old certificate entitled to encash that certificate may make an application in Form 1 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 a joint 'A' type certificate or a joint 'B' 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).Cases in which transfer can be sanctioned Designation of the officer competent 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 Postmaster of the post oilice to any other person under the orders where the certificate stands of a court of law. registered. (iii) From a single holder to the names of joint holders of whom the transteree 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 to in sub-rule (1) shall give his consent 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

purpose of this rule, "near relative" means husband, wife, lineal ascendant or descendant, 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 a court of law;

(iv) transfer in accordance withrule 12;

(v) transfer in the name of the survivor in the event of 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 subclause (i) or, as the case may be, sub-clause (ii) of clause (b) ofsection 5of 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 underrule 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 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 co-operative society including a co-operative bank;

8 [(d) a local authority; and

(e) a housing finance company approved by the National Housing Bank

and9notified by the Central Government]: 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 be, sub-clause (ii) of clause (b) ofsection 5of 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 security under sub-rule (1), the postmaster of the office of 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), be 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 re-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 (1) 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 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 a certificate is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a 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 circumstance 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 guarantee: Provided that where the face value or the aggregate face value of the certificate or certificates lost, stolen, destroyed, mutilated or delaced 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, or whatever face value, a duplicate certificate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or delaced 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 provisions of sub-rules (2) to (6), the single holder or joint holders of a certificate may, by filling in necessary particulars on Form 1 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 certificate 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) ofrule 25together with the certificate to the postmaster of the post office at which the certificate stands registered.

(5) Separate application for nomination or cancellation of a nomination 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 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 anv 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 encashment 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 (1) ofrule 25.

RULE 19 ENCASHMENT OF MINOR'S CERTIFICATE

(1) A person encashing a certificate on behalf of a minor shall furnish a letter from the parent or guardian of the minor referred to in sub-clause (i), or, as the case may be, sub-clause (ii) of clause (b) ofsection 5of 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) ofsection 6of 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 his will or letters ot administration ot his estate or a succession certificate granted under theIndian 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 exceed26["Rs 60,000"](inclusive of the sum due on the savings certificates issued from time to time and held by the deceased), the authority specified in the 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 probale of his will or letters of administration of his estate or succession certificate granted under theIndian Succession Act, 1925 (39 of 1925).25(Head Quarter & Region)]

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

Where a certificate is held by a person who is subject to theArmy Act, 1950 (46 of 1950), or theAir Force Act, 1950 (45 of 1950), or theNavy Act, 1957 (62 of 1957), and such person dies or deserts, the Commanding 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, may send a requisition to the officer-in-charge of the post office where the certificate stands registered to pay him or it, the amount due under the certificate; 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 ol receiving the payment or sub-division. Note.-When there is a nomination in favour of a 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 CONVERSION FROM ONE DENOMINATION TO ANOTHER

(1) Certificates 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 certificates of lower denomination of the same aggregate face value: Provided that certificates 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 certificates surrendered and not the date on which the exchange is made.

RULE 24 INCOME-TAX

Interest on these certificates shall be liable to lax under theIncome- tax Act, 1961 (43 of 1961), on the basis of the annual accrual specified inrule 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 a court of law;

(ii) issue of duplicate certificate underrule 13;

(iii) issue of a certificate of discharge underrule 18;

(iv) conversion from one denomination to another underrule 23. Explanation.-

The fee to be charged for 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 fees shall be charged on an application for registration of the first nomination.

RULE 26 RESPONSIBILITY OF THE POST OFFICE

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 MISTAKES

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 certificates 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.

GOVERNMENT SAVINGS CERTIFICATES RULES, 1965

December 16, 1965

In exercise of the powers conferred by Sec. 12 of the Government Savings Certificates Act, 1959 ( 46 of 1959) the Central Government hereby makes the following rules, namely:-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called theGovernment Savings Certificates Rules, 1965-.

(2) They shall come into force on the 1st March, 1966.

(3) They shall apply to the National Savings Certificates (First Issue)-Bank Series.

RULE 2 DEFINITIONS

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

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

(ii) "Bank" means the State Bank of India or any of its subsidiary banks which is authorised to issue the Certificate;

(iii) "Certificate" means a National Savings Certificate (First Issue)- Bank Series:

(iv) "Company" means a company as defined in theCompanies Act, 1956 (1 of 1956) and includes a foreign company as defined inSec. 591of the said Act:

(v) "Co-operative Society" means a society registered or deemed to have been registered under theCo-operative Societies Act, 1912(2 of 1912) or under any other law for the time being in force;

(vi) "Corporation" means a corporation established by or under any law for the time being in force, but does not include a company;

(vii) "Deposit Office" means an office of the State Bank of India or any of its subsidiary banks;

(viii) "Form" means a form set out in the schedule to these rules;

(ix) "Government Company" means a Company as defined insection 617 of the Companies Act, 1956(1 of 1956);

(x) "Issuing Office" means the deposit office authorised by the Central Government by notification in the official Gazette in that behalf to issue certificates also;

(xi) "Local Authority" means a 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 a municipal or local fund;

(xii) "Scheduled Bank" means a bank for the time being included in the Second Schedule to theReserve Bank of India Act, 1934(2 of 1934) and includes an executor and a trustee company which is a subsidiary of a scheduled bank.

RULE 3 DENOMINATIONS IN WHICH CERTIFICATES SHALL BE ISSUED

-The certificates shall be issued in denominations of Rs. 10, Rs. 100 and Rs. 1,000.

RULE 4 TYPES OF CERTIFICATES

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

(a) Single Holder Type Certificates issued to an adult for himself or on behal t of a minor, or to a minor;

(b) Joint 'A' Type Certificates issued jointly to two adults and repayable to them jointly or to the survivor.

RULE 5 ACCEPTANCE OF DEPOSITS

(1) The deposits for the purchase of the certificates shall be accepted at all deposit offices. These deposits may be in cash or by cheque, pay order, or demand draft drawn in favour of the officer in charge of the deposit office.

(2) Every deposit for the purchase of certificate shall be made along with an application in Form I at any deposit office and that office, if it is not an issuing office, shall send that amount of deposit together with the application to the issuing office concerned.

RULE 6 ISSUE OF CERTIFICATES

(1) On receipt of the deposit with the application, the issuing office shall, on being satisfied that the application is in order, issue certificate or certificates after registering the same-

(a) where the deposit has been received from another office, to the depositor or his representative through that office;

(b) in all other cases, to the depositor or his representative.

(2) The date of issue of a certificate shall be the date on which the deposit is made:

Provided that where the deposit is made by means of a cheque, pay order or demand draft, the certificate shall not be issued unless the proceeds thereof are realised.

(3) Where a certificate or certificates are not issued immediately, a provisional receipt in Form II shall be given by the deposit office to the purchaser which may later be exchanged for a certificate and in such a case the date of certificate shall be the date of the provisional receipt.

RULE 7 LIMITS UP TO WHICH CERTIFICATES MAY BE PURCHASED

-The maximum amount that may be invested in the certificates including the amount invested in National Savings Certificates (First Issue) in terms of the Government of India, Ministry of Finance Notification No. F. 7 (3)-NS/65 (ii), dated the 25th March, 1965, shall be: (i) for an adult for himself or on behalf of a minor or by a minor ..Rs. 25,000, (ii) for two adults jointly ..Rs.50,000

RULE 8 CALCULATIONS OF LIMITS

-For the purpose of calculating the limits under the rules:-

(i) one-half of the joint holding shall be taken to belong to each holder:

(ii) the certificates transferred by way of pledge or security under rule 12 shall continue to be counted as the holding of the pledger.

RULE 9 EXCESS OR IRREGULAR HOLDINGS

(1) Any certificate purchased or acquired in excess of the limit prescribed in these rules or in contravention of these rules shall be encashed by the holder as soon as the fact of the holding being in excess of the limit or in contravention of these rules is discovered and no interest shall be paid on either the excess holding or any holding in contravention of these rules :

Provided that a holding shall not be considered in excess of the limit prescribed in these rules, if it is due to any of the following reasons, namely:- (a) inheritance; (b) award by the Government for meritorious services; (c) survivorship in the case of joint holdings; (d) statutory devolution; and (e) nomination.

(2) If any interest has been paid on any excess holding or any holding which is in contravention of these rules, it shall be forthwith refunded to the Government, failing which, the Government shall be entitled to recover the amount involved from any money payable by the Government to the investor or as an arrear of land revenue.

RULE 10 TRANSFER FROM ONE OFFICE TO ANOTHER

-(1) A holder of a Single Holder Type Certificate or both its holders in the case of a Joint 'A' Type Certificate or either of the holders of a Joint 'B' Type Certificate may apply in Form III for transfer of the certificate from one issuing office to another.

RULE 11 TRANSFER FROM ONE PERSON TO ANOTHER

(1) A certificate may be transferred subject to the following conditions, namely-

(a) the transfer shall be made in writing in Form IV;

(b) the transfer may relate to the whole amount for which the certificate is issued or to a part thereof;

(d) the transfer shall not take effect until it is registered by the issuing office;

(e) any transfer during the period of two years from the date of issue of the certificate may be made only to-

(i) a near relative (husband, wife, lineal ascendant or descendant, brother or sister) out of natural love and affection;

(ii) any other person or to any court under the orders of a court of law or with the approval of the Central Government;

(iii) a legal heir or the registered nominee or nominee of the deceased holder.

(2) An officer-in-charge of the issuing office 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 a guardian referred to in sub-clause (7) or, as the case may be, sub-clause (ii) of Cl. (b) ofSec. 5-of the Act certifies, in writing, that the minor is alive and that such transfer is in his or her interest.

(3) Save as provided in rule 12, on the registration of a transfer, a new certificate shall be issued to the transfer.

(4) the date of issue of the new certificate referred to in sub-rule (3) shall be tile same as the date of the certificate transferred.

RULE 12 TRANSFER BY WAY OF PLEDGE OR SECURITY

(1) Notwithstanding anything contained in Cl. (e) of sub-rule (1) of rule 11, but subject to the conditions specified in Cls. (a), (b) and (d) of that sub-rule, a certificate may by transferred by way of pledge or 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 co-operative society including a co-operative bank;

(d) a local authority:

Provided that the transfer of a certificate purchased on behalf of a minor shall be permitted only if at the time of the proposed transfer, a parent or a guardian referred to in sub-clause (i) or, as the case may be, sub-clause (ii) of Cl. (b) ofSec. 5-of the Act certifies in writing that the minor is alive and that such transfer is in his or her interest:

Provided further that a gazetted officer of the Government who accepts the certificate as security under sub-rule (1) or releases the pledge under sub-rule (3) on behalf of the President or the Governor of a State shall certify that he is duly authorised under Art. 299 of the Constitution in pursuance of the Notification No.............dated the.......... ..by the Government of India in the Ministry of......../State Government........to execute such instruments or deeds on behalf of the President of India/Governor of.........State. Such a certificate shall bear the signature and seal of office of the gazetted officer.

(2) Until a certificate is retransferred under sub-rule (3), the pledgee shall be deemed to be the holder of the certificate.

(3) A certificate transferred under sub-rule (1) may be re-transferred, even within the period of non-encashability, by registration of the transfer deed in Form IV executed by the pledgee and the pledger.

(4) No new certificate shall be issued in the case of a transfer under the provision of this rule. On the registration of a transfer, the officer-in-charge of the issuing office shall make the following endorsement on the certificate, namely :-

"Transferred as security to ....................(official designation)" In the event of

the certificate being re-transferred to the pledger, the officer-in-charge of the

issuing office shall make the following endorsement on the certificate, namely-"Retransferred to.........,.............................."

(5) Where as a result or several endorsements made under sub-rule (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 officer in-charge of the office of registration in lieu of such certificates.

(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 the purposes of these rules.

RULE 13 TRANSFER FROM SINGLE HOLDING TO JOINT HOLDING AND VICE VERSA

-On an application in Form V being made to the issuing office :-

(a) a certificate in the name of a single holder may be transferred to the joint names of the holder and any other person;

(b) a certificate in the names of joint holders may be transferred to the name of one of the joint holders.

RULE 14 CONVERSION FROM 'A' TYPE CERTIFICATE TO 'B' TYPE CERTIFICATE AND VICE VERSA

- On an application being made to the issuing office:

(i) a joint 'A' Type Certificate may be converted into a joint 'B' certificate in the names of the same holders, and

(ii) a joint 'B' Type Certificate may be converted into a joint 'A' Type Certificate in the names of the same holders.

RULE 15 REPLACEMENT OF LOST OR DESTROYED CERTIFICATE

(1) If a certificate is lost, stolen, destroyed, mutilated or defaced, the person or persons entitled thereto may apply for the issue of a duplicate certificate to die issuing office where the certificate is registered.

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

(3) If the issuing office to which the application under sub -rule (1) has been made, is satisfied of the loss, theft, destruction, mutilation or defacement of the certificate, it shall, after recording an entry on the application for purchase in respect of that certificate, issue a duplicate certificate on the applicant furnishing an indemnity bond in Form VI 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 certificate 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.

RULE 16 ENCASHABILITY

(1) A certificate shall not be encashable within a period of twenty-four months from the date of its purchase,

(2) A certificate may, however, be encashed within the period specified in sub-rule (1) under any of the following circumstances, namely :-

(a) on the death of the holder or both the holders in the case of a Joint holding;

(b) on forfeiture by a pledgee being a gazetted Government Officer, when the pledge is in conformity with the provisions of these rules;

(c) when the holding is in excess of the limits prescribed under these rules; (d) when the certificate has been issued in contravention of these rules; and (e) when ordered by a Court of law.

RULE 17 PLACE OF ENCASHMENT

A certificate shall be encashable at the office at which it stands registered:

Provided that a certificate may be encashed at any other office of the bank if me officer-in-charge of that office is authorised by the office of its registration to make payment to the person presenting the certificate.

RULE 18 DISCHARGE OF CERTIFICATES

(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 that person himself, but his signature shall be attested either by the person who purchased it on his behalf or by any other person who is known to the issuing office.

(3) A certificate of discharge may be issued to any person encashing a certificate on payment of the fee specified in sub-rule (1) of rule 28.

RULE 19 ENCASHMENT OF MINOR'S CERTIFICATE

(1) A person encashing a certificate on behalf of a minor shall furnish a certificate on behalf of a minor shall furnish a certificate that the minor is alive and that the money is required in the interest of the minor.

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

RULE 20 PARTIAL DISCHARGE

(1) At any time after the period of its non-encashability a certificate of denomination of Rs. 100 or Rs. 1,000 may be discharged in part, such part being Rs. 10 or a multiple thereof.

(2) The date of issue of certificates for the balance due will be that of the original certificate partly discharged.

RULE 21 CONVERSION FROM ONE DENOMINATION TO ANOTHER

(1) Certificates of lower denomination bearing the same date of issue may be exchanged for a certificate or certificates of higher denomination of the same face value or a certificate of higher denomination may be exchanged for certificates of lower denomination of the same value.

(2) The date of issue of the exchange certificate shall be the same as that of the original certificate surrendered and not the date on which it is exchanged.

RULE 22 NOMINATION

(1) A holder of a Single Holder Certificate who is not a minor or a sole surviving holder of a Joint 'A' or 'B' Type Certificate and who holds the certificate in his individual capacity and not in the capacity of the holder of an office or otherwise may nominate one or more persons who shall be entitled to the certificate and to payment thereon in the event of the death of the holder:

Provided that - (a) the person or each of the persons nominated is himself competent to hold a certificate, and (b) the nomination is made before the maturity of the certificate.

(2) Every nomination under sub-rule (1) whether in substitution of a nomination already made or not, shall be made in Form VII.

(3) A nomination made under this rule may on a subsequent date be cancelled in writing in Form VIII.

(4) A person making a nomination under sub-rule (2) or cancelling a nomination already, made under sub-rule (3) shall apply in (he prescribed form accompanied by the fee prescribed in sub-rule (2) of rule 28 either at the issuing office or at the desposit office which shall trasmit the application to the issuing office for registration of a nomination or for cancellation of a registered nomination, as the case may be.

(5) The issuing office shall, thereupon, register a nomination or cancel the registered nomination in its books and return the certificate with an endorsement thereon that a nomination has been made in respect of the certificate or that the nomination already made has been cancelled.

(6) No nomination or cancellation of a nomination shall take effect unless and until it has been registered under this rule but on such registration having been registered it shall have effect from the date on which the nomination was actually made by the holder.

(7) Separate applications shall be made in respect of certificate registered at different times.

(8) Not more than one person shall be nominated in respect of a certificate of the denomination of Rs. 10

RULE 23 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 purposes of sub-rule (1) the surviving nominee or nominees shall make an application supported by proof of death of the holder and of a deceased nominee, 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 payment or subdivision.

(4) Where there is a nomination in favour of a single nominee or two adult nominees the issuing 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.

(5) A transfer of a certificate under rule 11 shall automatically cancel a nomination previously made :

Provided that where a certificate on its transfer under rule 12 is held by or on behalf of any person as a pledgee or by way of security for any purpose such transfer shall not have the effect of cancelling a nomination but the right of the nominee shall be subject to the right of the pledgee.

RULE 24 DOCUMENTS EXECUTED BY AN ILLITERATE PERSON

(1) If any person by whom any application for investment, or any other document relating to these certificates is to be signed/executed, satisfies a Magistrate that he is for any reason unable to write and that the fact of the document is fully understood by him and that he is the person whom he represents himself to be, such Magistrate may at the request of that person and subject to the provisions of this rule execute the application or the document on his behalf under proper authentication.

(2) Nothing contained in sub-rule (1) shall preclude the Bank from accepting an application for investment by an illiterate person bearing the thumb impression of the investor and attested by two witnesses or an authorised agent unless the Bank doubts the genuineness of the thumb impression or of the attestation.

RULE 25 PAYMENT TO HEIRS

(1) For the purposes of sub-section (4) ofSec. 7-of the Act, the officer-in-charge of the issuing office shall be competent to sanction claims up to Rs. 5,000 on the death of the holder of the certificate, without production of the probate of his will or letters of administration of his estate or succession certificate granted under theIndian Succession Act, 1925(39 of 1925).

(2) A declaration shall be furnished by the claimant that to the best of his knowledge, there exist no other certificate in the name of the deceased other than those for which payment is sought and that subsequently if any more such certificate be found in excess of the value of Rs. 5,000 legal evidence of heirship as required by the Bank will be produced: such declaration should be countersigned by a Magistrate under the seal of his court certifying that the claimant/s is/are the only legal heir/s of the deceased who has left no other property necessitating production of a succession certificate.

RULE 27 INCOME TAX

Interest on these certificates will be liable to tax under theIncome-tax Act, 1961(43 of 1961) but no tax will be deducted at the time of payment of the discharge value of the certificate.

RULE 28 FEES

(1) A fee of twenty-five paise in the case of a certificate of denomination of rupees one hundred or lower and rupee one in any other case, shall be chargeable in respect of the following transactions, namely:-

(i) transfer of a certificate from one person to another including die transfer

under rule 13, except the transfer from the name of a deceased holder to his

heir or from a holder to a court of law or to any other person under the orders of a court of law, or transfers made under rule 12;

(ii) issue of a duplicate certificate under rule 15; (iii) issue of a certificate of discharge under rule 18(3); (iv) partial discharge of a certificate under rule 20;

(v) conversion from one denomination to another under rule 21.

Explanation.-(1) The fee to be charged for the issue of a certificate of

discharge under clause (iii) shall be calculated separately on the aggregate face

value of all certificates which were purchased on any one application and which are included for discharge in discharge certificate.

(2) A fee of fifty paise shall be chargeable on every application for registration of nomination or cancellation thereof:

Provided that no fee shall be charged on an application for registration of the first nomination.

RULE 29 RESPONSIBILITY OF THE ISSUING OFFICER

The issuing 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 30 POWERS TO RECTIFY CLERICAL ERRORS

The issuing office of the Bank may upon an application by any person interested in any certificate issued in pursuance of these rules rectify any clerical or arithmetical mistake provided that it does not involve any financial loss to the Government or to any such person.

RULE 31 RESIDUARY POWERS

All matters in respect of a certificate which are not covered by the provisions of these rules shall be regulated as the Central Government may specify in consistence with the provisions of the Act and these rules.

SCHEDULE 1 SCHEDULE

Form I-Form of Application for purchase of certificate [Rules 5 (2)] 2. Form II- Receipt for deposits [Rule 6(3) ] 3. Form III- Form of transfer of certificate from one office to another (Rule 10) 4. Form IV- Form of transfer of certificate from one person to another [Rule 11(1)] 5. Form V- Form of transfer from single holding to joint holding etc. (Rule 13) 6. Form VI- Form of Indemnity Bond [Rule 15(3)] 7. Form VII- Nomination Form [Rule 22(2)] 8. Form VIII- Form of cancellation of registered nomination [Rule 22(3)].

THE NATIONAL SAVINGS CERTIFICATES (FIRST ISSUE) RULES, 1965

March 25, 1965

In exercise of the powers conferred by Sec. 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules, namely :-

RULE 1 SHORT TITLE, COMMENCEMENT AND APPLICATION

(i) These rules may be called the National Savings Certificates (First Issue) Rules, 1965.

(ii) They shall come into force on the 1st April, 1965.

(iii) They shall apply to the National Savings Certificates (First Issue).

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires-

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

(ii) "certificate" means National Savings Certificate (First Issue);

(iii) "identity slip" means an identity slip issued to a holder of a certificate under rule 11;

(iv) "post office" means any post office in India doing Savings Bank work;

(v) "old certificate" means a certificate issued under the Post office Savings Certificate Rules, 1960;

(vi) "Government company" means a company as defined inSec. 617 of the Companies Act, 1956-(1 of 1956).

RULE 3 DENOMINATIONS IN WHICH CERTIFICATES SHALL BE ISSUED

National Savings Certificates (First Issue) shall be issued in denominations of Rs. 10, Rs. 100 and Rs. 1,000.

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) Single Holder Type Certificates may be issued to an adult for himself or on behalf of a minor, or to a minor.

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

RULE 6 PROCEDURE FOR PURCHASE OF CERTIFICATES

Any person desiring to purchase a certificate shall present on or after the 1st June, 1965 an application in Form 1 (obtainable free at all post offices) either in person or through his messenger of an authorised agent of the Small Savings Scheme.

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) surrender of Savings Stamps;

(ii) a cheque, pay order or demand draft;

(iv) duly signed withdrawal form together with the pass book for withdrawal from the post office savings bank account;

(v) surrender of a Government of India Five Year Interest Free Prize Bond, 1965, on or before the 31st December, 1965 ; and

(vi) surrender of a matured old certificate.

RULE 8 ISSUE OF CERTIFICATES

(1) On payment being made under rule 7, a certificate shall normally be issued immediately and except as otherwise provided in these rules, the date of such certificate shall be the date of its issue:

Provided that when payment is made by means of a cheque, pay order or demand draft, a certificate shall not be issued before the proceeds of the cheque, pay order, or demand draft are realised.

(2) If for any reason a certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser which may later be exchanged for a certificate and in such a case the date of certificate shall be the date of the provisional receipt.

RULE 9 CERTIFICATE IN LIEU OF PROCEEDS OF OLD CERTIFICATE OR GOVERNMENT OF INDIA FIVE YEAR INTEREST FREE PRIZE BONDS, 1965

(1) Subject to the maximum limit prescribed in rule 5 a holder of an old certificate entitled to encash that certificate may make an application in Form 1 for the grant of a certificate under these rules; on receipt of such an application, there shall be issued to the application a certificate under these rules, the date of issue being the date on which the old certificate matured.

(2) Subject to the maximum limit prescribed in rule 5 a holder of the Government of India Five Year Interest Free Prize Bond, 1965 may make an application on or before the 31 st December, 1965 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 issuing being 1st April, 1965.

RULE 10 EXCESS OR IRREGULAR HOLDINGS

(1) Any certificate purchased or acquired in excess of the limit prescribed in these rules or in contravention of these rules shall be encashed by the holder as soon as the fact of the holding being in excess of the limit or in contravention of these rules, is discovered and no interest shall be paid on either the excess holdings or any holding in contravention of these rules :

Provided that a holding shall not be considered in excess of the limit prescribed in these rules, if it is due to any of the following reasons, namely :- (a) inheritance; (b) award by the Government for meritorious services; (c) survivorship in the case of joint holdings; (d) statutory devolution; and (e) nomination.

(2) If any interest has been paid on any excess holding of any holding which is in contravention of these rules, it shall be forthwith refunded to the Government, failing which the Government shall be entitled to recover the amount involved from any money payable by the Government to the investor or as an arrear of land revenue.

RULE 11 IDENTITY SLIP

(1)If a request to this effect is made at any time by an individual adult holder of a certificate including a holder on behalf of a minor or by joint holders, to the Post Master of the post office where the certificate stands registered, an identity slip shall be issued to such holder or holders on his or their signing the identity slip.

(2) The identity slip shall be surrendered at the time of the final discharge of the certificate or, in case of its loss, a declaration of such loss shall be furnished to the post office in the form laid down by the Director General Posts and Telegraphs.

RULE 12 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 form laid down by the Director General Posts and Telegraphs at either of the two post offices.

(2) Every such application shall be signed by the holder or holders thereof:

Provided that in the case of a Joint Type Certificate the application may be signed by one of the holders if the other is dead.

RULE 14 TRANSFER FROM SINGLE HOLDING TO JOINT HOLDING AND VICE VERSA

- Subject to the provisions contained in sub-rule (1) of rule 13, on an application to this effect being made:-

(a) a certificate in the name of a single holder may be transferred to the joint names of the holder and any other person;

(b) a certificate in the names of joint holders may be transferred to the name of one of the joint holders.

RULE 15 CONVERSION FROM 'A'TYPE CERTIFICATE TO 'B'TYPE CERTIFICATE AND VICE VERSA

(i) A Joint 'A' Type Certificate may be converted into a Joint 'B' Type Certificate in the names of the same holders;

(ii) A Joint 'B' Type Certificate may be converted into a Joint 'A' Type Certificate in the names of the same holders.

RULE 16 PLEDGING OF CERTIFICATE

(1) On an application being made in the form laid down by the Director General, Posts and Telegraphs by the transferor and the transferee, Postmaster of the office of registration may at any time, before or after the period of its non-encashability 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 co-operative society including a co-operative bank;

(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 purchaser of the certificate certifies that the minor is alive and the transfer is for the benefit of the minor.

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

(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), be 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 re-transfer is made, the Postmaster of the office of registration shall make the following endorsement on the certificate, namely:- "Re-transferred to......................".

Note.- A gazetted officer of the Government accepting the certificates as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the President or the Governor of a State shall certify that he is duly authorised under Art. 299 of the Constitution vide Notification No...................dated........................by the Government of India in the Ministry of Finance.................../State Government...................to execute such instruments or deeds on behalf of the President of India/Governor of...............................State.

(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 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 the purposes of these rules.

RULE 17 REPLACEMENT OF LOST OR DESTROYED CERTIFICATE

(1) If a certificate is lost, stolen, destroyed, mutilated or defaced, the person or persons entitled thereto may apply for the issue of a duplicate certificate to the post office where the certificate is registered or at any other post office.

(2) Every such application shall be accompanied by :-

(a) a statement showing particulars, such as, number, amount, and date of the

certificate and the circumstances attending such loss, theft, destruction, mutilation or defacement;

(b) an identity slip, if any.

(3) If the officer in charge of the post office to which application under sub-rule (1) has been made is satisfied after due reference to post office of issue of the loss, theft, destruction mutilation of defacement of the certificate, he shall make a report to the Director, Audit and Accounts, Posts and Telegraphs concerned and the Director of Audit and Accounts shall issue a duplicate certificate in the form laid down by the Director General, Posts and Telegraphs on the applicants furnishing an indemnity bond in the form laid down by the Director General, Posts and Telegraphs with one or more approved sureties or with a bank's guarantee:

Provided further that where such application is made with respect to a certificate mutilated or defaced, of whatever face value, a duplicate certificate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or defaced and the identity slip, if any, are surrendered and the certificate is capable of being identified as the one originally issued.

RULE 18 NOMINATION

(1) The holder of a Single Holder Type Certificate referred to in sub-rule (2) (a) of rule 4 may, before the maturity of the certificate made an application in Form 2 affixing postage stamps of the value specified in sub-rule (2) of rule 30 together with the certificate to the Postmaster of the office at which the certificate stands registered nominating any person who in the event of his death shall become entitled to the certificate and to the payment of the value due thereon :

Provided that in the case of a certificate of the denomination of Rs. 10 or Rs. 100, the holder shall not be entitled to nominate more than one person.

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

(3) A nomination made by the holder 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 30 together with the certificate to the Postmaster of the post office at which the certificate stands registered.

Note.-Separate applications shall be made in respect of certificates registered at different times.

(4) 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 date shall be noted on the certificte.

RULE 19 WHEN ENCASHABLE

(1) Except as provided in sub-rule (2), a National Savings Certificate, 1965 (First Issue) of any denomination may be encashed at any time after the expiry of the period of two years from the date of issue.

(2) A certificate may be encashed before its period of non-encashability under any of the following circumstances, namely:-

(a) on the death of the holder or both the holders in the case of a joint holding;

(b) on forfeiture by a pledgee being a gazetted Government officer, where the pledge is in conformity with the provisions of these rule;

(d) when ordered by a Court of law.

RULE 20 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 production of identity slip or on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

RULE 21 DISCHARGE OF CERTIFICATES

(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.

(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 (1) or rule 30.

RULE 22 ENCASHMENT OF MINOR'S CERTIFICATE

(1) A person encashing a certificate on behalf of a minor shall furnish a certificate that the minor is alive and that the money is required on behalf of the minor.

RULE 24 ENCASHMENT OF CERTIFICATE HELD BY ARMY AND AIR FORCE PERSONNEL

Where on the death or desertion of any person holding a certificate and subject to theArmy Act, 1950-(46 of 1950), or theAir Force Act, 1950-(45 of 1950), the Commanding Officer of the Corps, department, detachment or unit to which the deceased or deserter belonged, or the Committee of Adjustment, as the case may be, sends underSec. 3 read with Sec. 4 of the Army and Air Force (Disposal of Private Property) Act, 1950-(40 of 1950), a requisition to the officer-in-charge of the post office where the certificate stands registered, to pay to him or it, the amount due under the certificate, the officer of the post office shall be bound to comply with such requisition.

RULE 25 RIGHTS OF NOMINEES

(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 purposes 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 a deceased nominee, 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 payment or subdivision..

Note.- When there is a nomination in favour of a 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 26 PARTIAL DISCHARGE

(1) At any time after the period of its non-encashability, a certificate of higher denomination than Rs. 10 may be discharged in part, such part being Rs. 10 or a multiple thereof.

(2) The date of issue of certificate for the balance due will be that of the original certificate partly discharged.

RULE 27 CONVERSION FROM ONE DENOMINATION TO ANOTHER

(1) Certificate of lower denomination may be exchanged for a certificate or certificates of higher denomination of the same face value or a certificate of higher denomination may be exchanged for certificates of lower denomination of the same face value.

(2) The date of issue of the exchanged certificate shall be the same as that of the original certificate surrendered and not the date on which it is exchanged.

RULE 29 Income-tax

- Interest on these certificates will be liable to tax under theIncome-tax Act, 1961-( 43 of 1961), but no tax will be deducted at the time of payment of the discharge value of the certificate.

RULE 30 FEES

(i) transfer of a certificate from one person to another including the transfer

under rule 14 except the transfer from the name of a deceased holder to his

heir or from a holder to a Court of law or to any other person under the orders of a Court of law, or transfers made under rule 16;

(ii) issue of a duplicate certificate under rule 17; (iii) issue of a certificate of discharge under rule 21; (iv) partial discharge of a certificate under rule 26;

(v) conversion from one denomination to another under rule 27;

Explanation.-

(1) The fee to be charged for the issue of a certificate of discharge under Cl (iii) shall

be calculated separately on the aggregate face value of all certificates which were

purchased on any one application and which are included for discharge in discharge certificate

(2) The fee to be charged for a partial discharge under Cl. (iv) or for a conversion under Cl. (v) shall be based on the number and denomination of the certificates required to be issued on such discharge or conversion.

(2) A fee of 50 paise 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 31 SPECIAL PROVISIONS

-A holder of a 12-Year National Defence Certificate issued during the period between the 1st April, 1965 and the 30th September, 1965 (both days inclusive) shall have the option to get the certificate exchanged on or before the 31st December, 1965 with a National Savings Certificate (First Issue) for an equivalent amount if the holder is otherwise eligible to hold a National Savings Certificate (First Issue). In such a case the new certificate shall be issued from the date of the 12-Year National Defence Certificate.

RULE 32 RESPONSIBILITY OF THE POST OFFICE

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

RULE 33 RECTIFICATION OF MISTAKE

(i) The Director General of Posts and Telegraphs, or

(ii) The Postmasters General or Heads of Postal Divisions in their respective jurisdiction may either suo moto 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 does not involve any financial loss to the Government or to any such person.

KISAN VIKAS PATRA RULES 1988

In exercise of the powers conferred by

Section 12 of Government Savings Certifi- cate Act, 1959(46 of 1959), the Central Government hereby makes the following rules, namely:

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Kisan Vikas Patra Rules, 1988.

(2) They shall come into force on the 1st day of April, 1988.

RULE 2 DEFINITIONS

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

(i) "Act" meansthe Government Savings Certificates Act, 1959 (46 of 1959);

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

{iii) "certificate" means the Kisan Vikas Patra;

{iv) "post office" means any departmental post office in India doing Savings Bank work;

(v) "identity slip" means any identity slip issued to a holder of certificate underRule 9;

{vi) words and expressions used herein and not defined but defined inPost Office Savings Certificate Rules, 1960shall have the meanings respectively assigned to them in these rules.

RULE 3 APPLICATION OF POST OFFICE SAVINGS CERTIFICATE RULES, 1960

- The provisions ofPost Office Savings Certificate Rules, 1960, so far as may be, apply in relation to matters for which no provision has been made in these rules.

RULE 4 DENOMINATION OF CERTIFICATES

16-The Certificates shall be issued in denominations of Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10,000.

RULE 5 PURCHASE OF CERTIFICATE

-Any number of certificates of the denominations specified inRule 4may be purchased.

RULE 6 TYPE 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; {iii) a company ; (iv) a corporation;

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

(vi) a firm registered under theIndian Partnership Act, 1932(9 of 1932);

(vii) a local authority.

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

(c) A Joint 'B" Type certificate may be issued jointly to two adults payable to either of the liolders or to the survivor.

1 "(3) Non-Resident Indians (NRIs) are not eligible to purchase the Kisan Vikas Patras :

Provided that if a resident who subsequently becomes NRI during the currency of maturity period, shall be allowed to avail the benefits of the Patras on maturity on a non-repatriation basis.".

RULE 7 PROCEDURE FOR PURCHASE OF CERTIFICATE

(1) Any person or body specified inRule 6, desiring to purchase a

certificate, shall present at a Post Office an application in28"Form A or Form A1" annexed to these rules either in person or through his messenger or an authorised agent of the small savings schemes. "Explanation.-Form A and Form A1 shall be in two different colours. White colour (Form A) shall be used for direct investment and another coloured form (Form Al) shall be used for investment through agents."

(2) Payment for the purchase of a certificate may be made to a Post Office in any of the following modes, namely :-

(i) by cash ; or

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

(iii) by presenting a duly signed withdrawal form or cheque together with the

Pass Book for withdrawal from Post Office Savings Account standing in credit of the purchaser at the same Post Office.

RULE 8 ISSUE OF CERTIFICATES

(1) On payment being made underRule 7, except where payment is made by a cheque, pay order or demand draft, a certificate shall be issued 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 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.

RULE 9 IDENTITY SLIP

(1) If a request for the issue of an identity slip is made at any time by holder or holders of a certificate, an identity slip shall be issued to such holder or holders on his or their signing the identity slip.

(2) The identity slip shall be surrendered at the time of the final discharge of the certificate or in case of its loss, a declaration of such loss shall be furnished to the post office.

RULE 10 REPLACEMENT OF LOST OR DESTROYED CERTIFICATE

(1) If a certficate is lost; stolen) destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office of issue.

(2) Where an application under sub-rule (1) has been made to a post office other than the post office of issue, the said post office shall forward such application to the post office of issue.

(3) Every application under sub-rule (1) shall be accompanied by-

(a) a statement showing particulars, such as, number, amount and date of the

certificate and the circumstances attending such loss, theft, destruction, mutilation or defacement;

(b) identity slip, if any ;

(4) If the Postmaster of the post office of issue is satisfied as to the loss, theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certificate on the applicant's furnishing an indemnity bond in form laid down by Department of Posts with one or more sureties or with a bank's guarantee : Provided that where such application is made with respect to a certifi- cate mutilated or defaced, a duplicate certificate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or defaced and the identity slip, if any, are surrendered and the certificate is capable of being identified as the one originally issued.

(5) A duplicate certificate issued under sub-rule (4) shall be treated as equivalent to the original certificate for all the purposes, except that it shall not be encashable at a Post Office other than the Post Office of issue without previous verification.

RULE 10A NOMINATION

22 (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 in Form-A 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-B to the postmaster of the post office at which the certificate stands registered.

(2) There shall not be more than one nominee, except 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 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-C affixing postage stamps of the value of Re 1 on every such application together with the certificate to the postmaster of the post office at which the certificate stands registered: Provided that no fee shall be charged on an application for registration of the first nomination; or

(5) Separate application for nomination or cancellation of a nomination 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 11 PLACE OF ENCASHMENT

A certificate shall be encashed at the Post Office of its issue: Provided that a certificate may be encashed at any other Post Office if the officcr-in-charge of that Post Office is satisfied on production of identity slip or on verification from the post office of issue that the person presenting the certificate for encashment is entitled thereto.

(1) Encashment on maturity.-

(1) The maturity period of a certificate of any denomination shall be five and half years, commencing on 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. 2000 for denomination ofRs. 1000 and at proportionate rate for any other denomination.

18 (2) Where such a certificate has been purchased on or after the 16th day of December, 1991, the amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 2100 for a denomination of Rs. 1000 and at proportionate rate for any other denomina- tion

20(3) Notwithstanding anything contained in sub-rules (1) and (2), the maturity period of a certificate purchased on or after the 24th day of April 1992 shall be five years commencing on the date of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 2,000 for a denomina- tion ofRs. 1,000 and at proportionate rate for any other denomi- nattion.

RULE 12 .

17 (1) The maturity period of a certificate of any denomination shall be five and half years, commencing on 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. 2000 for denomination ofRs. 1000 and at proportionate rate for any other denomination.

17 (2) Where such a certificate has been purchased on or after the 16th day of December, 1991, the amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 2100 for a denomination of Rs. 1000 and at proportionate rate for any other denomination

3 (3) Notwithstanding anything container in sub-rules (1) and(2) the maturity period of a certificate purchased on or after 24th day of April 1992 shall be five year commencing on the date of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.2,000 for a denomination of Rs,1,000 and at proportionate rate for any other denomination.

4 (4) Notwithstanding anything container in sub-rules (1) and(2) the maturity period of a certificate purchased on or after 2nd day of September, 1993 shall be five years and six months commencing on the date of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.2000 for a denomination of Rs,1,000 and at proportionate rate for any other denomination.

(5) Notwithstanding anything container in sub-rules (1) and(2) the maturity period of a certificate purchased on or after 15th day of January, 2000 shall be six years and six months commencing on the date of issue of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.2000 for a denomination of Rs,1,000 and at proportionate rate for any other denomination.

5 (6) Notwithstanding anything container in sub-rules (1) and(2) the maturity period of a certificate purchased on or after 15th day of January, 2000 shall be six years and six months commencing on the date of issue of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.2000 for a denomination of Rs,1,000 and at proportionate rate for any other denomination.

6 (7) Notwithstanding anything container in sub-rules (1) to (6) the

maturity period of a certificate purchased on or after7["the 1st day of March, 2001 but before the 1st day of March, 2002"] shall be seven years and three months commencing on the date of issue of the certificates. The amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs.2000 for a denomination of Rs,1,000 and at proportionate rate for any other denomination.

8 (8) Notwithstanding anything contained in sub-rules (1) to (7), the

maturity period of a certificate purchased on or after9["the 1st day of March, 2002 but before the 1st day of March, 2003"] , shall be seven years and eight months commencing on the date of issue of the certificate. The amount, inclusive of interest, payable on encashment of the certificate at any time after expiry of its maturity period shall be Rs: 2,000/- for a denomination of Rs. 1,000/ - and at proportionate ratefot any other denomination.

10(9) Notwithstanding anything contained in sub-rules (1) to (8), the maturity period of a certificate purchased on or after the 1st day of March, 2003, shall be eight years and seven months commencing on the date of issue of the certificate. The amount, inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs. 2,0007- for a denomination of Rs. 1,000/-and at proportionate rate for any other denomination.

RULE 14 DISCHARGE OF CERTIFICATE

(1) The person entitled to receive the amount due under a certificate shall, on its encashment) sign on 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; buc his signature shall be attested either by the person who purchased it on his behalf or by any other person who is known to the Post Master.

RULE 15 RESPONSIBILITY OF POST OFFICE

-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 16 RECTIFICATION OF MISTAKES

-The Department of Posts or the Post Master General or 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 docs not involve any financial loss to the Government or to any such person.

RULE 17 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 or that provision in a manner not inconsistent with the provisions of the Act.

NATIONAL DEVELOPMENT BONDS RULES 1977

In exercise of the powers conferred by

Section 12 of the Government Savings Certificates Act, 1959(46 of 1959), the Central Government here- by makes the following rules, namely :-

RULE 1 SHORT TITLE, COMMENCEMENT AND APPLICATION

(1) These rules may be called the National Development Bonds Roles, 1977.

(2) They shall come into force on the date of their publication in the Official Gazette.

(3) They shall apply to the National Development Bonds issued under these rules.

RULE 2 DEFINITIONS

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

(a) "Act" meansthe Government Savings Certificates Act, 1959 (46 of 1959)-;

(b) "Bond" means the National Development Bond;

(d) "Issuing Office" means a Post Office doing Savings Bank work, or a corresponding new Bank specified in the First Schedule tothe Banking Companies (Acquisition and Transfer of Under- takings) Act, 1970 (5 of 1970)-, or the State Bank of India constituted under theState Bank of India Act, 1955 (23 of 1955), or a subsidiary Bank as defined inthe State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959).

RULE 3 DENOMINATIONS

-Bonds shall be issued in denominations of Rs. 10 Rs. 100 and Rs. 500.

RULE 4 LIMITS UPTO WHICH BONDS MAY BE PURCHASED

-Any number of Bonds may be purchased in the denominations specified inRule 3-

RULE 5 PROCEDURE FOR PURCHASE OF BONDS

(1) A person desiring to purchase a Bond shall apply to an Issuing Office either himself or through a messenger in Form I obtainable from that Office.

(2) Payment for the purchase of a Bond may be made to an Issuing Office either in cash or by cheque drawn on and in favour of that Issuing Office.

(3) The Bonds may be held by-

(a) an individual in his or her name or on behalf of a minor

(b) two adults, payable to both jointly or to either holder or survivor.

RULE 6 DATE OF ISSUE OF BONDS

-A Bond shall be issued on the date of payment. If for any reason a Bond cannot be issued on the same day a provisional receipt in Form 2 shall be given to the purchaser which may later be exchanged for a Bond and in such a case the date of the Bond shall be the date of the provisional receipt.

RULE 7 ENCAILUNENT OF BOND

(1) The Bond may be encashed at any time after the expiry of 5 years from the date of issue, at the Issuing Office at which it stands registered or the Issuing Office to which it stands trans- ferred underRule 9-.

(2) The amount) including interest, payable on Bonds of denominations of Rs. 10, Rs. 100 and Rs. 500, on encashment under sub-rule (1), shall be Rs. 16.50, Rs. 165 and Rs. 825, respectively.

RULE 8 IRREGULAR HOLDINGS

-Any Bond purchased or acquired in contra- vention of these rules shall not earn any interest and if any interest has been paid. Government shall be entitled to recover the same from the holder.

RULE 9 TRANSFER FROM ONE ISSUING OFFICE TO ANOTHER

-On an applica- tion being made to this effect by the holder of a Bond to the Post Office, or, as the case may be, the Bank, referred to in clause (d) ofRule 2-, the Bond may be transferred from the post office to another post office or from the branch of the Bank to another branch of the same Bank.

RULE 10 TRANSFER OF BONDS

-The Bonds may, on an application being made to this effect by the holder to the Issuing Office concerned, be trans- ferred in favour of any authority as a security and retransferred to the original holder on the written authorisation of the transferee : Provided that the transfer of a Bond purchased on behalf of a minor shall not be permitted unless the holder of the Bond certifies that the minor is alive and the transfer is for the benefit of the minor.

RULE 11 CONVERSION OF SINGLE HOLDING INTO JOINT HOLDING AND VICE- NERSA

-On an application being made to this effect by the holder to the Issuing Office concerned-

(a) a Bond held in an individual's name, may be converted into a Bond to be held jointly with an other individual;

(b) conversely, a Bond held jointly may be converted into a Bond in the name of one of the joint holders.

RULE 12 REPLACEMENT OF BOND

(1) If a Bond, is lost, stolen, destroyed, mutilated or defaced, the person or persons entitled thereto may apply for the issue of a duplicate Bond to the Issuing Office, where the Bond is registered.

(2) Every such application shall be accompanied by a statement showing particulars, such as, number, amount and date of the Bond and the circumstances attending such loss, theft, destruction, mutilation or deface- ment.

(3) If the Issuing Office is satisfied of the loss, theft, destruction, mutilation or defacement of the Bond, it shall issue a duplicate Bond on the applicant furnishing an indemnity bond 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 Bond or Bonds lost, stolen, destroyed, mutilated or defaced is Rs. 500 or less, a duplicate Bond or Bonds may be issued on the applicant furnishing an indemnity bond without any such surety or guarantee : Provided further that where such application is made in respect of a Bond mutilated or defaced, of whatever face value, a duplicate Bond may be issued without any such indemnity bond, surety or guarantee, if the Bond mutilated or defaced is surrendered and the Bond is capable of being identi- fied as the one originally issued.

(4) A duplicate Bond issued under sub-rule (3) shall be treated as equivalent to the original Bond for all the purposes of these rules.

RULE 13 NOMINATION

(1) The holder of a Bond may, by filling in necessary particulars in Form 3 at the time of purchasing the Bond or at any time after the purchase of the Bond but before the maturity thereof, nomi- nate any person who in the event of the holder's death, shall become entitled to the Bond and to the payment of the amount due thereon: Provided that the holder shall not be entitled to nominate more than one person in respect of a Bond.

(2) No nomination may be made in respect of a Bond applied for and held jointly, or by or on behalf of a minor.

(3) A nomination made by the holder of a Bond under this rule may be cancelled or varied by him by submitting an application in Form 4 to the Issuing Office where the Bond stands registered. Note.-Separate applications shall be made in respect of Bonds registered at different times.

(4) A nomination, or the cancellation or variation of a nomination, shall be effective from the date it is registered in the Issuing Office, which date shall be noted on the Bond.

RULE 14 DISCHARGE OF BONDS

(1) The person entitled to receive the amount due on a Bond shall, on its encashment underRule 7-, sign on the reverse side thereof in token of having received the payment.

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

RULE 15 PAYMENT TO HEIRS

(1) For the purposes of sub-section (4) ofSection 7-of the Act, the authorities named below shall be competent to sanction claims upto the limit noted against each, on the death of the holder of the Bond, without production of the probate of his will or letters of administration of his estate or succession certificate, granted under theIndian Succession Act, 1925(39 of 1925)-.Name of Authority Limit (a) Issuing Offices Rs. 500 (b) Gazetted Post Masters or Presidency Post Masters or Senior Superintendents or Superintendents of Post Offices Rs. 5,000 (c) Head offices of Banks referred to in clause- (d) ofRule 2-Rs. 5,000

(2) A declaration shall be furnished by the claimant that to the best of his knowledge there exist no other Bonds the name of the deceased other than those for which payment is sought and that if subsequently any more such Bonds be found in excess of the vahie of Rs. 5,000, legal evidence of heirship asrequiredbythelssuingOfficeshallbeproduced.

RULE 16 INCOME-TAX

-Interest on the Bonds, shall .be liable fo.taxJunder theIncome-tax Act, 1961 (43 of 1961)-, and be. eligible for exemption under Section SOL thereof.

RULE 17 FEES

-A fee of fifty paise shall be chargeable in respect of the following transactions, namely :-

(i) transfer of a Bond from one Issuing Office to another underRule 9-;

(ii) issue of a duplicate Bond underRule 12-;

(iii) registration of nomination (other than the first nomination) or of any variation or cancellation of nomination underRule 13-.

RULE 18 RECTIFICATION OF MISTAKE

-The Issuing Office may, either suo motu or upon an application by any person interested in any Bond issued in pursuance of these rules, rectify any clerical or arithmetical mistakes with respect to that Bond provided that it does not involve any financial loss to the Government or to any such person.

INDIRA VIKAS PATRA RULES 1986

In exercise nf the power* confrrrrd by

section l2 of Government Savings Certi- ficates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules, namely-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Indira Vikas Patra Rules, 1986.

(2) They shall come into force on the 19th day of November, 1986.

RULE 2 DEFINITIONS

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

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

(ii) "Cash" means cash in Indian currency;

(iii) "Certificate" means the Indira Vikas Patra;

(iv) "Post Office" means any Post Office in India doing savings bank work.

RULE 3 DENOMINATIONS OF CERTIFICATES

-The certificate shall be issued in denominations of Rs.500/- and Rs. 1000/-.

RULE 4 PURCHASE OF CERTIFICATES

(1) The certificates of denomination of Rs. 500/- and Rs. 1000/- may be purchased for Rs. 250/- and Rs. 500/- respectively.

(2) Any number of certificates of the denominations specified in Rule 3 may be purchased.

RULE 5 PROCEDURE FOR PURCHASE OF CERTIFICATES

(1) A certificate may be purchased at a. Post Office on payment in either of the following modes, namely:-

(i) by cash; or

(ii) by presenting a duly signed withdrawal form or cheque, together with the

Pass Book for withdrawal from the Post Office Savings Account standing in the credit of the purchaser at the same Post Office.

(2) No formal application is necessary for purchase of a certificate.

RULE 6 ISSUE OF CERTIFICATE

(1) On payment being made underRule 5-, a certificate shall be issued immediately and the date of issue of such certi- ficate shall be the date of payment.

(2) If for any reason a certificate cannot be issued immediately, a provisional receipt shall be given to the purchaser, which may later be exchanged for a certificate by the person holding the provisional receipt.

(3) A certificate issued under this rule is transferable.

RULE 7 REPLACEMENT OF CERTIFICATE

(1) If a certificate is mutilated or defaced, the bearer is entitled for replacement from the Post Office of issue on payment of fee of rupee one.

(2) A certificate lost, stolen, mutilated defaced or destroyed beyond recognition, will not be replaced by any Post Office.

RULE 8 ENCASHMENT OF CERTIFICATE

-A certificate of any denomination may be encashed at any time after the expiry of a period of five years from the date of issue by presenting it before the Post Office of issue: 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 Post Office of issue that such certificate was issued by the said Post Office.

RULE 9 DISCHARGE OF CERTIFICATE

-The person presenting a certificate for encashment shall sign in the space provided on the back thereof in token of having received the payment and indicate thereon his name and address.

RULE 10 RESPONSIBILITY OF THE POST OFFICE

-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 11 POWER TO RELAX

-Where the Central Government is satisfied that the operation of any of the provisions in these rules causes undue hardship to the holder 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.

SOCIAL SECURITY CERTIFICATE RULES, 1982

June 6, 1982.

G.S.R- 259(E),-In exercise of the powers conferred by

section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules, namely: -

RULE 1 SHORT TITLE, COMMENCEMENT AND APPLICATION

(1) These rules may be called the Social Security Certificates Rules, 1982.

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

(3) They shall apply to the Social Security Certificates.

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires-

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

(ii) "Certificate" means the Social Security Certificate;

(iii) "postal Circle" means the post offices under the administrative authority of a Postmaster General or the Director, Army Postal Services.

(iv) "co-operative society" means a society registered or deemed to have been registered under theCo-operative Societies Act, 1912 (2 of 1912)-or under any other law for the time being in force;

(v) "Corporation" means a corporation established by or under any law for the time being in force, but docs not include a company;

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

(vii) "Government company" means a company as defined insection 617 of the Companies Act, 1956 (1 of 1956)-;

(viii) "identify slip" means an identity slip issued to a holder of a certificate underrule 11;

(ix) "local authority" means a municipal corporation, municipal committee, district board, body of post commissioners or other authority legally entitled to or entrusted by the Government with the control or management of a municipal or local fund;

(x) "old certificate" means a certificate issued under thePost Office Savings Certificates Rules, 1960, or theNational Savings Certificates (First Issue) Rules, 1965, or theNational Savings Certificates CIV Issue) Rules, 1970or theNational Savings Certificates (V Issue) Rules, 1973, or theNational Savings Annuity Certificates Rules, 1976, or theNational Savings Certificates (VI Issue) Rules, 1981, or theNational Savings Certificates (VII Issue) Rules, 1981, or a Bond issued under the National Development Bonds Rules, 1977;

(xi) "post office" means any post office in India doing Savings Bank work."

RULE 3 DENOMINATIONS IN WHICH CERTIFICATES SHALL BE ISSUED

--The certificates shall be issued in denominations of Rs. 500 and Rs. 1000.

RULE 4 MATURITY PERIOD

,-The maturity period of a certificate shall be 10 years from the date of issue of certificate underrule 8

RULE 5 PROCEDURE AND CONDITIONS FOR PURCHASE OF CERTIFICATE

-A certificate may be purchased by any person in his name by presenting at a post office on or after the 1st day of June, 1982, an application in Form 1 (obtained free of cost at all post offices) either in person or through an authorised agent of small savings schemes, subject to the following conditions, namely:-

(a) The applicant shall as on the date of presentation of his application to the post office, be not less than 18 years of age and not more than 45 years of age.

(b) the applicant shall be in good health and shall not, during the period of three years proceeding the date of application, have suffered from asthma, pneumonia, spitting of blood, tuberculosis, high or low blood pres- sure, rhenumatic fever, diabetes, Jaundice, any disease of kidney, prostate or urinary system, paralysis, insanity epilepsy fits of any kind or nervous break-down or any other .disease of the brain or nervous system, cancer leprosy, rheumatism, tumour, or venereal disease, or undergone any surgical operation which has resulted in the applicant's hospitalisation for more than ten days;

(c) where a proposal of insurance on the applicant's life has been made at any time to the Life Insurance Corporation of India or under the Postal Life Insurance scheme, such proposal shall not have been rejected, by the said Corporation or under the said scheme ;

(d) the application in Form 1 shall be complete in all respects, and shall be accompanied by the documents as specified in the said Form and bear the signature of the applicant or his thumb-impression, if he is illiterate, which shall beaffixed by him in the presence of an authorised person and no addition, deletion or modification in any manner shall be made in the declarations contained in the said Form save as other wise directed therein.

(e) the application shall be accompanied by payment of face value of the certificated applied for ;

(f) details of any certificate already purchased under these rules by the applicant shallbe furnished by him

RULE 6 LIMIT ON HOLDING OF CERTIFICATES

-No person shall purchase or hold at any time certificates for an aggregate face value which exceeds Rs 5000.

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 cheque, pay order or demand draft ;

(iii) duly signed withdrawal from together with the pass book for withdrawal from the post office savings 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 underrule 7, except where payment is made by a cheque, pay order or demand draft, a certificate shall normally be issued, immediately, and the date of such certificate shall be the date of such 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 be exchanged for a certificate arid 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 LIEN OF PROCEEDS OF OLD CERTIFICATE

-A holder of an old certificate entitled to encash that certificate may make an application in Form one for the issue of a certificate under these rules and on receipt of such 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 present1ed.

RULE 10 IRREGULAR HOLDING

-Any certificate purchased or acquired in contravention of these rules shall be encashed by the holder as soon as the fact of the holding being in contravention of these rules is discovered and no interest shall be paid on any holding in contravention of these rules.

RULE 11 IDENTITY SLIP

(1) If a request for the issue of an identity slip is made at any time by the holder of a certificate to the post office where the certificate stands registered, an identity slip shall be issued to such holder on his signing the identity slip.

(2) The identity slip shall be surrendered at the time of the final discharge of the certificate or in case of its loss, a declaration of such loss shall be furnished to the post office in the form laid down by the Director General, Posts and Telegraphs.

RULE 12 TRANSFER FROM ONE POST OFFICE TO ANOTHER

- A certificate may, during its maturity period, be transferred from a post office at which it stands registered, to any other post office on the holder making an application in the form laid down by the Director General, Posts and Telegraphs, at either of the two post Offices. Provided that where a reason holds more than one certificate and their maturity period has not expired, all such certificates shall be registered in a Post Office or post offices in the same postal circle.

RULE 13 PLEDGING OF CERTIFICATE

(1) The Postmaster of the office where a certificate stands registered may permit transfer of the certificate for being pledged 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 co-operative society including a co-operative bank;

(d) a local authority :

Provided that an application for such transfer is made by the holder of the certificate and the pledge in the form laid down by the Director General, Posts and Telegraphs

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

(3) Except as otherwise provided in these rules, the pledge of a certificate under this rule shall, until it is re-transferred under sub-rule(4),be 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 re-transfer is made, the Postmaster of the office where the certificate stands registered shall make the following endorsement on the certificate :- "Re-transferred to......-....................".

(5) Where as a result of several endorsements made under sub-rule (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 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 the purposes of these rules.

RULE 14 REPLACEMENT OF LOST OR DESTROYED CERTIFICATE

(1) if a certificate is lost, stolen, destroyed, mutilated or defaced the person entitled thereto may apply for the issue of the duplicate certificate to the post office, where the certificate is registered or at any other post office in which case the application will be forwarded to the post office where the certificate stands registered

(2) Every such application shall be accompanied by-

(a) a statement showing particulars, such as, member, amount and date of the

certificate and the circumstances attending such loss, theft destruction, mutilation or defacement;

(b) identify slip, if any.

(3) If the officer in charge of the post office where the certificate stands registered is satisfied of the loss theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certificate on the applicant's furnishing an indemnity bond in the form laid down in the Director General posts and Telegraphs with one or more approved sureties or with a bank's guarantee: Provided that where the certificate lost, stolen destroyed, mutilated or defaced is of the denomination of Rs. 500,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 certificate may be issued without any such indemnity bond, surety or guarantee, if the certificate mutilated or defaced and the identity slip, if any, are surrendered arid the certificate is capable of being identified as the one originally issued.

RULE 15 NOMINATION.

(1) Subject to the provisions of sub-rules (2) to (4), the holder of a certificate may, by filling in necessary particulars in Form 1 at the time of purchasing the certificate, nominate any person or persons who, in the event of death of the holder 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 holder at any time after the purchase of the certificate but before its maturity, by submitting an application in Form 2, together with the certificate to the Post master of the office where the certificate stands registered

(2) A nomination made by the holder of a certificate, under .this rule may be cancelled or varied by submitting an application in Form 3, together with the certificate, to the Postmaster of the post office at which the certificate stands registered.

(3) Separate applications for nomination or cancellation of a nomination or variation of a nomination shall made in respect of certificates registered on different dates.

(4) The nomination or the cancellation of a nomination or the variation of a nomination shall beregistered in the Head Post Office concerned and the fact of registration shall be noted on the certificate and on such registration, the said 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.

RULE 16 PAYMENT ON MATURITY

- On the expiry of the maturity period of a certificate, its holder or, in the event of his death, his nominee, or if there is no surviving nominee, the legal heir of the holder, as the case may be, shall be entitled to receive a sum inclusive of interest of Rs. 1500 if the certificate, is of the denomination of Rs 500 or Rs. 3000 if the certificate is of the denomination of Rs. 1000 and such interest shall accure at the end of each year as specified in the Table below and the interest so accruiag. at the end of each year upto the end of the ninth year shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount of face value of the certificate.

TABLE ____________________________________________________________________________ The year for which interest accrues. Amount of interest (Rs.) accruing on certificate of deno- mination of. ______________________ Rs. 500 Rs. 1000 ____________________________________________________________________________ 1 2 3 ____________________________________________________________________________ First pear 58.06 116.12 Second year 64.80 129.60 Third year 72.33 144.66 Fourth year 80.73 161.46 Fifth year 90.10 180.20 Sixth year 100.57 201.14 Seventh year 112.24 244.48 Eighth year 125.28 250.56 Ninth year 139.83 279.66 Tenth year 156.06 31.12 ____________________________________________________________________________

RULE 17 PREMATURE ENCASHMENT

(1) Notwithstanding anything contained inrule 16, a certificate may, at the option of the holder; be prematurely encashed at a discount at any time after the expiry of three years from the date of issue of the certificate and on such encashment, the amount payable to him shall be equivalent to the face value of the certificate together with simple interest thereon for the complete years and months for which the certificate has been held Such interest shall be calculated at the rate applicable as on the date of encashment to savings accounts of the category of single accounts in the Post Office Savings Bank. The difference between the aforesaid simple interest and the interest accrued underrule 16shall be deemed to be the discount

(2) Notwithstanding anything contained in sub-rule (1) andrule 16and subject to sub-rules (3) & (4), a certificate may be permaturely encashed before the expiry of three years-

(i) on forfeiture by a pledge of the certificate, when the pledge is in conformity with rules, these, or

(ii) when ordered by a court of law.

(3) If a certificate is encashed under sub-rule (2) within a period of one year from the date of the certificate, only the face value of the certificate shall be payable and no interest shall be payable.

(4) If a certificate is encashed under sub-rule (2) after the expiry of one year but before the expiry of three years from the date of the certificate, the encashment shall be at a discount and the amount payable and discount shall be as specified in sub-rule (1).

RULE 18 PAYMENT IN THE EVENT OF DEATH OF THE HOLDER DURING MATURITY, PERIOD.

(1) Subject torule 21and sub-rules (2),(3) and (4), on the death of the holder of a certificate-

(a) due to any cause, at any time after the expiry of two years from the date of issue of the certificate and before the expiry of its maturity period, or

(b) due to one or more non-natural causes at any time before the expiry of two years from the date of issue of the certificate. the nominee, or if there is no surviving nominee, the legal heir of the holder, as the case may be, shall be entitled to receive, in respect of each such certificate held by the deceased

holder, payment of a sum of Rs. 1500 or Rs. 3000 according to the denomination of the certificate of Rs. 500 or Rs. 1000, as the case may be.

(2) If a doubt arises as to whether the death of the holder was or was not due to a non-natural cause other than self-injury or suicide, the certificate in Form 4 by the district collector or the district magistrate in whose jurisdiction the place of death falls shall be deemed final.

(3) Payment under sub-rule (1) shall be restricted to the certificates held by a deceased holder upto a maximum limit of aggregate face value of Rs. 5000 and in respect of any certificate held in excess of such limit by the deceased holder and not matured as on the date of bis death, the face value of of such certificate shall be payable only on the expiry of its maturity period without any interest to the nominee or legal heir of the holder, as the case may be: Provided that such face value shall be payable immediately without any interest if the certificate is presented for encashment-

(a) on forfeiture by a pledgee of the certificate when the pledge is in confirmity with these rules, or

(ii) when ordered by a court of law.

(4) In case it is found that there has at any stage been a fraudulent misstatement or suppression of information relating to the date of birth of the holder or any other material fact relevent to the issue of the certificate or payment thereon, the face value of such certificate shall be payable only on the expiry of its maturity period without any interest to the nominee or legal heir of the holder as the case may be: Provided that such face value shall be payable immediately without any interest if the certificate is presented for encashment.-

(i) on forfeiture by a pledgee of the certificate when the pledge is in confirmity with these rules, or

(b) when ordered by a court of law.

(5) In cases not covered by clause (b) of sub-rule (1), on the death of the holder of a certificate at any time before the expiry of two years from the date of the certificate, the nominee or if there is no surviving nominee, the legal heir of the holder, may, at his option-

(i) encash the certificate on the expiry of its maturity period, in which case he

shall be entitled to receive a sum of Rs. 1500 or 3000 according to the denomination of the certificate of Rs 500 or Rs. 1000, as the case may be; or

(ii) encash the certificate at any time before the expiry of its maturity period, in which case he shall be entitled to receive a sum equivalent to the face value of the certificate together with interest as specified in sub-rule (1) ofrule 17;

provided that no such interest shall be payable if the certificate is encashed before the expiry of one year from the date of the certificate.

RULE 19 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 production of identity slip or on verification from the office of its registeration that the person presenting the certificate for encashment is entitled thereto.

RULE 20 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) A certificate of discharge may be issued by the post office to any person encashing a certificate.

RULE 22 ENCASHMENT OF CERTIFICATE HELD BY ARMY, AIR FORCE AND NAVY PERSONNEL

-Where a certificate is held by a person who is subject to theArmy Act, 1950 (46 of 1950)-or theAir Force Act, 1950 ( 45 of 1950 )-or theNavy Act, 1957 (62 of 1957)-and such person dies or deserts, the Comman- ding Officer of the Corps, department, detachment, unit or ship to which the deceased or deserter belonged or the Committee of AdjUstment, as the case may be, may send requisition to the officer in charge' of the post office where the certificate stands registered to pay to him or it, the amount due under the certificate 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.

RULE 23 CONVERSION FORM ONE DENOMINATION TO THE'OTHER

(1) On anapplication being made in this behalf by the holder, certificates of lower denomination may be exchanged for a certificate or certificates of higher denomination of the same aggregate face value or a certificate of higher denomination may be exchanged for certificates of lower denomination of the same aggregate face value: Provided that certificates 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 certificates surrendered and not the date on which the exchange is made.

RULE 24 INCOME-TAX

-Interest on the certificates shall be liable to tax under the,Income-tax Act, 1961 (43 of 1961)-, on the basis of the annual accrual specified inrule 6, but no tax shall be deducted at the time of payment of discharge value : Provided that any amount payable to a nominee or legal heir of a holder under sub-rule (1) ofrule 18shall not be liable to such tax.

RULE 25 FEES

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

(i) transfer of certificate underrule 13;

(ii) issue of a duplicate certificate under sub-rule (3) ofrule 14; (iii) issue of a certificate of discharge under sub-rule (2) of,rule 20; (iv) conversion from one denomination to another underrule 23;

(2) A fee of one rupee 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 OF THE POST OFFICE

- 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 MISTAKES

-The Director General, Posts and Telegraphs, or the Postmasters General or Heads of Postal Divisions in their respective jurisdictions, may either suo moto or upon an application by any person interested in any certificate issued inpursuance of these rules, rectify any clerical or arithmetical mistakes with respect to that certificate.if it does not involve any financial loss to the Government or to any such person.

RULE 28 RECOVERY OF IRREGULAR PAYMENTS

-If any amount has been paid as interest or otherwise to any person save as provided in these roles, it shall be forthwith refunded to the Government failing which the Government shall be entitled to recover the amount from any money payable by the Government to such person or as an arrear of land revenue.

RULE 29 INTERPRETATION

-If any question arises relating to the interpretation of these rules, it shall be referred to the Central Government for a decision.

RULE 30 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 of a certificate or his nominee or legal heir, as the case may be, 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.

Act Type :- Central Bare Acts

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