NATIONAL
SAVINGS CERTIFICATES (VIII ISSUE) RULES, 1989
(Notification No. GSR 496(E), dated 1st May, 1989)
In exercise of
the powers conferred by section 12 of the Government Savings Certificates
Act1959 (46of1959), the Central Government hereby makes the following rules,
namely:
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.
In these rules, unless the context
otherwise requires:
(i) "Act"
means the Government Savings Certificates Act, 1959 (46 of 1959);
(iii) "cash"
means cash in Indian currency;
(iv) "certificate"
means the National Savings Certificates (VIII Issue);
(vi) "corporation"
means a corporation established by or under any law for the time being in
force;
(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 Savings Certificates (V Issue) Rules, 1973, or a bond issued under
the National Development Bonds Rules, 1977, or the National Savings
Certificates (VI Issue) Rules, 1981, or the National Savings Certificates (VII
Issue) Rules, 1981, or the Social Security Certificates Rules, 1982, or the
Kisan Vikas Patra Rules, 1988;
(xii)
(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.
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.
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)
[4][4] [(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;
(iii) * * *]
(b) A joint 'A' type certificate may be issued
jointly to two adults payable to both the holders jointly or to the survivor.
(c) A joint 'B' type certificate may be
issued jointly to two adults payable to either of the holders or to the
survivor.
[6][6] [(3) Non-resident Indians (NRIs)
are not eligible to purchase the National Savings Certificates:
Provided that if a resident who
subsequently becomes NRI during the currency of maturity period, he shall be allowed to avail of the
benefits of the certificates on maturity on a nonrepatriation basis.]
Certificates may be purchased for any amount.
6. Procedure for purchase
of certificates:-
Any person [7][7] [* * *] specified in rule 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.
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".
(1) On
payment being made under rule 7, except where payment is made by a cheque, pay
order or demand draft, a certificate shall normally be issued immediately, and
the date ofsuch 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 thecheque, 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.
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.
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.
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 authorized 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. |
Postmaster of
the post office where the certificate stands registered. |
|
(ii) From a
holder to a court of law or to any other
person under the orders of a court of
law. (ii) From a
holder to a court of law or to any other
person under the orders of a court of
law. (iii) From a
single holder to the names of joint holders of whom the transferee shall be
one. (iv) From
joint holders to the name of one of the joint holders. |
|
|
(b) All other
cases. |
Head
postmaster. |
(2) An authorized 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 with rule 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 sub-clause (i) or, as
the case may be, sub-clause (ii) of clause (b) of section 5 of
the Act, certifies in writing that the minor is alive and that such transfer is
in his interest.
(4) In
every case of transfer, other than a transfer under rule 12, the original
certificate shall be duly discharged and the new certificate bearing the same
date as that of the original certificate surrendered shall be issued in the
name of the transferee.
(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
(b) the Reserve Bank of
(c) a corporation or a Government company; [8][8] [* * *]
[9][9] [(d) a local authority;
and
(e) a housing finance company approved by the National Housing Bank
and [10][10] notified 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) of section 5 of the Act certifies in writing that the
minor is alive and that the transfer is for the benefit of the minor.
(2) When any certificate is transferred as
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 authorized 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 authorized 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 authorizing him in
this behalf.
Note 2:-
An officer of the Reserve Bank of India
or a scheduled bank or a co-operative 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.
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 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, or 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 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.
(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) of rule 25 together 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.
[11][11] [(1)] The
maturity period of a certificate of any denomination shall be six years
commencing from the date of the certificate. The amount, inclusive of interest,
payable on encashment of a certificate at any time after the expiry of its
maturity period, shall be Rs. 201.50 for denomination of Rs. 100 and at
proportionate rate for any other denomination. The interest as specified in the
Table below shall accrue to the holder or holders of the certificate at the end
of each year and the interest so accrued at the end of each year up to the end
of the fifth year, shall be deemed to have been re-invested 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 Rs.
100 denomination |
|
First year Second year Third year Fourth year Fifth year Sixth year |
12.40 13.90 15.60 17.50 19.70 22.40 |
Note:-
The amount of interest accruing on a
certificate of any other denomination shall be proportionate to the amount
specified in Table above.
[12][12] [(2) Where
a certificate has been purchased on or after the 1st day of January, 1999, the
amount, inclusive of interest, payable on encashment of the certificate at any
time after the expiry of its maturity period shall be
Rs. 195.60 for denomination of Rs. 100 and at proportionate rate for any other
denomination. The interest as specified in the Table below shall accrue to the
holder or holders of the certificate at the end of each year and the interest
so accrued at the end of each year up to the end of the fifth year shall be
deemed to have been reinvested on behalf of the holder and aggregated with the
amount of face value of the certificate.
Table
|
The year for which interest accrues |
Amount of interest accruing on certificate
of Rs. 100 denomination |
|
First year Second year Third year Fourth year Fifth year Sixth year |
11.83 13.23 14.80 16.54 18.51 20.69 |
Note:-
The amount of
interest accruing on a certificate of any other denomination shall be
proportionate to the amount specified in the Table above.]
[13][13] [(3) Where
a certificate has been purchased on or after the 15th day of January, 2000, [14][14] [but before the 1st day of March, 2001]
the amount inclusive of interest, payable on encashment of the certificate at
any time after the expiry of its maturity period shall be Rs. 190.12 for
denomination of Rs. 100 and at proportionate
rate for any other denomination. The interest as specified in the Table below
shall accrue to the holder or holders of the certificate at the end of each
year and the interest so accrued at the end of each year upto the end of the
fifth 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 Rs. 100 denomination (Rs.) |
|
First year Second year Third year Fourth year Fifth year Sixth year |
11.30 12.58 14.00 15.58 17.35 19.31 |
Note:-
The amount of interest accruing on a
certificate of any other denomination shall be proportionate to the amount
specified in the Table above.]
[15][15] [(4)
Where a certificate has been purchased on or after the 1st day of March, 2001 [16][16] [but before the 1st day of March,
2002], the amount inclusive of interest, payable on encashment of the
certificate at any time after the expiry of its maturity period shall be Rs.
174.52 for denomination of Rs. 100 and at proportionate
rate for any other denomination. The interest as specified in the Table below
shall accrue to the holder or holders of the certificate at the end of each
year and the interest so accrued at the end of each year up to the end of the
fifth year shall be deemed to have been reinvested on behalf of the holder and
aggregated with the amount of face value of the certificate.
Table
|
The year for which interest accrues |
Amount of interest (Rs.) accruing on
certificate of Rs. 100 denomination |
|
First year Second year Third year Fourth year Fifth year Sixth year |
9.72 10.67 11.71 12.85 14.10 15.47 |
Note:-
The amount of
interest accruing on a certificate of any other denomination shall be
proportionate to the amount specified in the Table above.]
2[(5) Where a
certificate has been purchased on or after the 1st day of March, 2002 [17][17] [but before
the 1st day of March, 2003], the amount inclusive of interest, payable on
encashment of the certificate at any time after the expiry of its maturity
period shall be Rs. 16.59 for denomination of Rs. 100 and at proportionate rate
for any other denomination. The interest as specified in the Table below shall
accrue to the holder or holders of the certificate at the end of each year and
the interest so accrued at the end of each year upto the end of the fifth 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 Rs. 100 denomination |
|
First year Second year Third year Fourth year Fifth year Sixth year |
9.20 10.05 10.97 11.98 13.09 14.29 |
Note:-
The amount of
interest accruing on a certificate of any other deno-mination shall be
proportionate to the amount specified in the Table above.]
[18][18] [(6) Where
a certificate has been purchased on or after the 1st day of March, 2003, the
amount inclusive of interest, payable on encashment of the certificate at any
time after the expiry of its maturity period shall be Rs. 160.10 for
denomination of Rs. 100 and at proportionate rate for any other denomination.
The interest as specified in the Table below shall accrue to the holder or
holders of the certificate at the end of each year and the interest so accrued
at the end of each year upto the end of the fifth 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 Rs. 100 denomination |
|
First year Second year Third year Fourth year Fifth year Sixth year |
8.16 8.83 9.55 10.33 11.17 12.08 |
Note:-
The amount of interest accruing on a
certificate of any other denomination shall be proportionate to the amount
specified in the Table above.]
[19][19] [(7) The
amount payable at the time of encashment on maturity may be rounded off to the
nearest multiple of one rupee and for this purpose any amount of 50 paise or
more shall be treated as one rupee and any amount less than 50 paise shall be
ignored.]
[20][20] [15A. Post-maturity interest:-
Where repayment of the amount,
inclusive of interest, under rule 15 has become due but has not been made,
interest shall be allowed on the amount due for a maximum period of two years
from the date of maturity to the date of repayment of the amount subject to the
following conditions, namely:
(a) The interest shall be simple and shall be calculated at the rate
applicable from time to time to savings accounts of the type of single or joint
account,
(b) For the purpose of payment of interest, any part of the period
which is less than one month shall be ignored,
(c) The interest shall be paid to the depositor in lump sum at the
time of repayment of amount due.]
(1)
Notwithstanding anything contained in rule 15 and subject to sub-rules
(2), (3) and (4), a
certificate may be prematurely encashed in any of the following circumstances, namely:
(a) on the death of the holder or any of the holders in case of
joint holders;
(b) on forfeiture by a pledgee being a Gazetted Government Officer
when the pledge is in conformity with these rules; or
(c) when ordered by a court of law.
(2) If
a certificate is encashed under sub-rule (1) within a period of one year from
the date of the certificate, only the face value of the certificate shall be
payable.
(3) If a certificate is encashed under
sub-rule (1) after expiry of one year but before the expiry of three years from
the date of certificate, the encashment shall be at a discount. On encashment
of the certificate, an amount equivalent to the face value of the certificate
together with simple interest shall be payable. Such simple interest shall be
calculated on the face value at the rate applicable from time totime to single
accounts under the Post Office Savings Account Rules, 1981, for the complete
months for which the certificate has been held. The difference between the
aforesaid simple interest and the interest accruing under rule 15 shall be
deemed to be the discount.
[21][21] [(4) (i) If a certificate is encashed under sub-rule (1) after the
expiry of three years from the date of certificate purchased before the 1st day
of March, 2001, the amount payable, inclusive of interest accrued under rule 15
and after adjustment of discount, shall be as specified in the Table below for
a certificate of Rs. 100 denomination and at a proportionate rate for a
certificate of any other denomination.
Table
|
Period from the date of
the certificate to the date of its encashment |
Amount payable inclusive |
|
Three years or
more but less than three years and six months Three years
and six months or more but less than four years Four years or
more but less than four years and six months Four years and
six months or more but less than five years Five years or
more but less than five years and six months Five years and
six months or more but less than six years |
132.00 138.50 145.00 152.00 159.00 166.50 |
(ii) If
a certificate is encashed under sub-rule (1) after the expiry of three years
from the date of certificate purchased on or after the 1st day of March, 2001 [22][22] [but before
the 1st day of March, 2002], the amount payable, inclusive of interest accrued
under rule 15 and after adjustment of discount, shall be as specified in the
Tablebelow for a certificate of Rs. 100 denomination and at a proportionate
rate for a certificate of any other denomination.
Table
|
Period from the date of
the certificate to the date of its encashment |
Amount payable inclusive |
|
Three years or
more but less than three years and six months Three years
and six months or more but less than four years Four years or
more but less than four years and six months Four years and
six months or more but less than five years Five years or
more but less than five years and six months Five years and
six months or more but less than six years |
126.43 131.71 136.90 142.48 147.98 153.89] |
[23][23] [(iii) If a certificate is
encashed under sub-rule (1) after the expiry of three years fromthe date of
certificate purchased on or after the 1st day of March, 2002 [24][24] [but before the 1st day of March,
2003], the amount payable, inclusive of interest accrued under rule 15 and
after adjustment of discount, shall be as specified in the Table below for a
certificate of Rs. 100 denomination and at a proportionate rate for a
certificate of any other denomination.
|
Period from the date of
the certificate to the date of its encashment |
Amount payable inclusive |
|
Three years or
more but less than three years and six months Three years
and six months or more but less than four years Four years or
more but less than four years and six months Four years and
six months or more but less than five years Five years or
more but less than five years and six months Five years and
six months or more but less than six years |
124.72 129.39 134.25 139.28 144.50 149.92]] |
[26][26] [(iv) If a certificate is
encashed under sub-rule (1) after the expiry of three years from the date of
certificate purchased on or after the 1st day of March, 2003, the amount
payable, inclusive of interest accrued under rule 15 and after adjustment of
discount, shall be as specified in the Table below for a certificate of Rs. 100
denomination and at a proportionate rate for a certificate of any other
denomination.
Table
|
Period from the date of
the certificate to the date of its encashment |
Amount payable inclusive |
|
Three years or
more but less than three years and six months Three years
and six months or more but less than four years Four years or more
but less than four years and six months Four years and
six months or more but less than five years Five years or
more but less than five years and six months Five years and
six months or more but less than six years |
121.15 125.09 129.16 133.36 137.69 142.16] |
[27][27] [(5) The amount payable at the time of
premature encashment may be rounded off to the nearest multiple of one rupee
and for this purpose any amount of 50 paise or more
shall be treated as one rupee and any amount less than 50 paise shall be ignored.]
A certificate shall be encashable at
the post office at which it stands registered:-
Provided that a
certificate may be encashed at any other post office if the officer-in-charge
of that post office is satisfied on verification from the office of its
registration that the person presenting the certificate for encashment is
entitled thereto.
18. Discharge of
certificate:-
(1) The person entitled to receive the amount
due underacertificateshall, 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) of rule 25.
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) of section 5 of
the Act, to the effect that the minor is alive and that the money is required
on behalf of the minor.
(2) When the nominee is a minor, the person
appointed under sub-section (3) of section 6 of the Act while encashing the
certificate, shall furnish a certificate that the minor is alive and that the
money is required on behalf of the minor.
(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 of
administration of his estate or a succession certificate granted under the
Indian Succession Act, 1925 (39 of 1925), is not, within three months of the
death of the holder, produced to the authority specified in the Table to
sub-rule (2), then if the sum due on the savings certificate does not exceed [28][28] [one lakh rupees] (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
probate of his will or letters of administration of his estate or succession
certificate granted under the Indian Succession Act, 1925 (39 of 1925).
|
Sl. No. |
Name of authority |
Limit (in Rs.) |
|
1 |
2 |
3 |
|
|
(i) Time Scale Departmental Sub-Postmasters (ii) Sub-Postmasters in Lower Selection Grade (iii) Sub-Postmasters/Deputy
Postmasters/Postmasters in Higher Selection Grade (All non-Gazetted) (iv)DeputyPostmasters/SeniorPostmasters/DeputyChiefPost-masters/Superintendentof
Post Offices/ Deputy Superintendent (All Gazetted Group-B) (v) Chief Postmasters in Head Offices, Senior
Superintendents (All Gazetted Group-A) (vi) Regional Directors/Director (General Post
Offices) (In Mumbai and Kolkata) (vii) Chief Postmasters General/Postmasters
General (Headquarter and Region) |
1,000 2,000 5,000 20,000 50,000 75,000 1,00,000] |
21. Encashment of certificates held by army,
air force and navy personnel:-
Where a certificate is held by a person
who is subject to the Army Act, 1950 (46 of 1950), or the Air Force Act, 1950
(45 of 1950), or the Navy 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.
(1) In the
event of the death of the holder of a certificate in respect of which a
nomination is in force, the nominee or nominees shall be entitled at any time
before or after the maturity of the certificate to:
(a) encash the certificate; or
(b) sub-divide the certificate in appropriate denominations in
favour of individual nominees or two adult nominees jointly.
(2) For the purpose of sub-rule (1), the
surviving nominee or nominees shall make an application to the postmaster of
the office of registration, supported by proof of death of the holder and of
deceased nominee or nominees, if any.
(3) If there are more nominees than one all
the nominees shall give a joint discharge of the certificate at the time of
receiving the payment or sub-division.
Note:-
When there is a
nomination in favour of 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.
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.
Interest on these certificates shall be
liable to tax under the Income-tax Act, 1961 (43 of 1961), on the basis of the
annual accrual specified in rule 15, but no tax shall be deducted at the time
of payment of discharge value.
(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 under rule 13;
(iii) issue of a certificate of discharge under rule 18;
(iv) conversion from one denomination to another under rule 23.
Explanation:-
The fee to be
charged for 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.
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.
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.
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.
[1]Clause (ii) was omitted by the
National Savings Certificates (VIII Issue) (Amendment) Rules, 1995, w.e.f.
1-4-1995. Prior to the omission, clause (ii) read as under:
"(ii)"banking
company" means a banking company as defined in section 5 of the Banking
Regulation Act, 1949 (10 of 1949);"
[2]Clause (v) omitted, ibid.
Prior to the omission, clause (v) read as under:
"(v)"company"
means a company as defined in the Companies Act, 1956 (1 of 1956);"
[3]Clause (vii) omitted, ibid.
Prior to the omission, clause (vii) read as under:
"(vii) "firm"
means a firm registered under the Indian Partnership Act, 1932 (9 of
1932);"
[4]Substituted by the National Savings
Certificates (VIII Issue) (Amendment) Rules, 1995, w.e.f. 1-4-1995. Prior to
the substitution, clause (a) read as under:
"(a)A
single holder type certificate may be issued to:
(i)an adult
for himself or on behalf of a minor or to a minor;
(ii)a
banking company excluding a co-operative bank;
(iii)a
company;
(iv)a
corporation;
(v)an
association, institution or a body registered as a society under any law for
the time being in force excluding co-operative society;
(vi)a firm;
(vii)a
local authority;
(viii)a
trust;"
[5]Sub-clauses (ii) and (iii)
omitted by the National Savings Certificates (VIII Issue) Amendment Rules,
2005, w.e.f. 13-5-2005. Sub-clause (iii) was inserted by the National
Savings Certificates (VIII Issue) (Second Amendment) Rules, 2001, w.e.f. 2-8-2001.
[6]Inserted by the National
Savings Certificates (VIII Issue) (Third Amendment) Rules, 2003, w.e.f.
25-7-2003.
[7]The words "or body"
omitted by the National Savings Certificates (VIII Issue) Amendment Rules,
2005, w.e.f. 13-5-2005.
[8]The word "and"
omitted by the National Savings Certificates (VIII Issue) (Amendment) Rules,
1990, w.e.f. 23-5-1990.
[10]See SO 498(E),
dated 1-8-1991.
[11]Inserted by the National
Savings Certificates (VIII Issue) (Amendment) Rules, 1999, w.e.f. 1-1-1999.
[12]Inserted by the National Savings
Certificates (Amendment) Rules, 1999, w.e.f. 1-1-1999.
[13]Inserted by the National
Savings Certificates (VIII Issue) (Amendment) Rules, 2000, w.e.f. 15-1-2000.
[14]Inserted by the National
Savings Certificates (VIII Issue) (Amendment) Rules, 2001, w.e.f. 1-3-2001.
[15]Inserted by the National Savings
Certificates (VIII Issue) (Amendment) Rules, 2000, w.e.f. 15-1-2000.
[16]Inserted by the National Savings
Certificates (VIII Issue) (Amendment) Rules, 2000, w.e.f. 15-1-2000.
[17]Inserted by the National
Savings Certificates (VIII Issue) (Amendment) Rules, 2003, w.e.f. 1-3-2003.
[18]Inserted by the National
Savings Certificates (VIII Issue) (Amendment) Rules, 2003, w.e.f. 1-3-2003.
[19]Inserted by the National
Savings Certificates (VIII Issue) (Second Amendment) Rules, 2003, w.e.f.
25-7-2003.
[20]Inserted by the National
Savings Certificates (VIII Issue) (Fourth Amendment) Rules, 2003, w.e.f.
16-10-2003.
[21]Substituted for sub-rule (4) by
the National Savings Certificates (VIII Issue) (Amendment) Rules, 2001, w.e.f.
1-3-2001. Prior to the substitution, the Table under sub-rule (4) was the same
as under present clause (i).
[22]Inserted by
the National Savings Certificates (VIII Issue) (Amendment) Rules, 2002, w.e.f.
1-3-2002.
[23]Inserted by the National Savings
Certificates (VIII Issue) (Amendment) Rules, 2002, w.e.f. 1-3-2002
[24]Inserted by the National Savings Certificates (VIII Issue) (Amendment)
Rules, 2003, w.e.f. 1-3-2003.
[25]Substituted by the National Savings
Certificates (VIII Issue) (Second Amendment) Rules, 2002, w.e.f. 17-10-2002.
Prior to the substitution, the Table, as inserted by the National Savings
Certificates (VIII Issue) (Amendment) Rules, 2002, w.e.f. 1-3-2002, read as
under:
|
Table |
|
|
Period from the date of the certificate to |
Amount payable inclusive |
|
the date of its encashment |
of interest (Rupees) |
|
Three years or more, but less
than three years and six months |
124.62 |
|
Three years and six months or
more, but less than four years |
129.51 |
|
Four years or more, but less
than four years and six months |
134.29 |
|
Four years and six months or
more, but less than five years |
139.43 |
|
Five years or more, but less
than five years and six months |
144.46 |
|
Five years and six months or
more, but less than six years |
149.83 |
[26]Inserted by
the National Savings Certificates (VIII Issue) (Amendment) Rules, 2003, w.e.f.
1-3-2003.
[27]Inserted by
the National Savings Certificates (VIII Issue) (Second Amendment) Rules, 2003,
w.e.f. 25-7-2003.
[28]Substituted for "Rs.
60,000" by the National Savings Certificates (VIII Issue) (Fourth
Amendment) Rules, 2003, w.e.f. 16-10-2003, which was earlier substituted for
"Rs. 20,000" by the National Savings Certificates (VIII Issue)
(Amendment) Rules, 1999, w.e.f. 6-7-1999.
[29]Substituted by the
National Savings Certificates (VIII Issue) (Fourth Amendment) Rules, 2003,
w.e.f. 16-10-2003. Prior to the substitution, the Table, as substituted by the
NSCs (VIII Issue) (Amendment) Rules, 1999, w.e.f. 6-7-1999, read as under:
|
Table |
|
|
Name of the authority |
Limit |
|
|
Rs |
|
(i) Departmental Sub-Postmasters in Time Scale Post Offices |
500 |
|
(ii) Sub-Postmasters of Lower Selection Grade Post Officers |
1,000 |
|
(iii) Sub-Postmasters/Deputy Postmasters/Postmasters in Higher
Selection Grade (all non-Gazetted) |
2,000 |
|
(iv) Deputy Postmasters/Senior Postmasters/Deputy Chief
Post-masters/Superintendent of Post Offices/Deputy Superinten-dent of Post
Offices (all Gazetted Group-B) |
10,000 |
|
(v) Chief Postmasters in Head Offices, Senior Superintendents
of Post Offices (all Group-A) |
25,000 |
|
(vi) Regional Director/Director (General Post Offices) (in Mumbai
and |
40,000 |
|
vii) Chief Postmasters General/Postmasters General (Head Quarter
and Region) |
60,000 |