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GOVERNMENT SAVINGS BANKS ACT, 1873
5 of 1873
28th January, 1873
An Act to amend the law relating to Government Savings Banks. Preamble. WHEREAS it is expedient to amend the law relating to the payment of deposits in Government Savings Banks; It is hereby enacted as follows: The Act has been extended to the new Provinces and Merged State by the Merged-States (Laws) Act, 1949(49 of 1949),Section 3(1-1-1950) and to the Union territories of Manipur and Triputa and Vindhya Pradesh by the UnionTerritories (Laws) Act, 1950(30 of 1950),S. 3(16-4-1950). Manipur and Tripura are States now (see Act 81 of 1971) but Vindhya Pradesh now forms part of M.P. State.-See Act 37 of 1956 S. 9(i)(e). The Act has been declared to be in force in Santhal Parganas (now in Bihar State) see Santhal Parganas,Settlement Regulation, 1872(3 of 1872), S. 3; Khondmals District, (now in Orissa State) seeKhondmals Laws Regulation, 1936(4 of 1936), S. 3 and Sch.; Angul District, seeAngul Laws Regulation, 19365 of 1936),(S. 3 and Sch. This Regulation has now been repealed by Orissa Act 19 of 1967, S. 2 and Angul District is a sub-division of Dhankanal District. It has been declared, by notification under the ScheduledDistricts Act, 1874(14 of 1874), S. 3(a) to be in force in the following Scheduled Districts:- the Districts of Hazaribagh, Lohardaga, and Manbhum and Pargana Dhalbhum and the Kolhan in the District of Singbhum, see Gaz. of Ind., 1881, Pt. I, p. 504. The District of Lohardaga (now called thge Ranchi District, see Cal. Gax. 1899, Pt, I, page 44) included at this time the District of Palamau separated in 1894, All these districts now form part of the State of Bihar. The Act was extended to the Union territory of Himachal Pradesh by H.P. A.L.O., 1948. H.P. is a 'State' from 25-1-1971-See Act 53 of 1970. The Act has now been extended to the Union territories of- (1) Dadra and Nagar Haveli by Regn. 6 of 1963 (1-7-1965); (2) Pondicherry by Regn. 7 of 1963 (1-10-1963); (3) Laccadive, Minicoy and Amindivi Islands (Now called Lakshdweep) by Regn. 8 of 1965 (1-10-1967). The Act has been extended to the Union territory of Goa, Daman and Diu and enforced therein on and from 1-9-1962-See S.O. 2734 published in Gaz. of Ind., 1-9-1962, Pt. II, S. 3(ii). Extra., p. 1991. The Act has been brought into force from 11-3-1992 in the State of Sikkim-See Gaz. of Ind., 11-3-92, Pt. II, S. 3(ii), Ext., p. 2 (No. 184).
PRELIMINARY
SECTION 01: SHORT TITLE
This Act may be called the Government Savings Banks Act, 1873. Local extent. It extends 1 to 2 [the whole of India 3 [* * *].]
SECTION 02: ACT NOT TO APPLY TO DEPOSITS IN ANCHAL SAVINGS BANK
This Act shall not apply to any deposits made in the Anchal Savings Bank of the State of Travancore-Cochin, and, notwithstanding anything contained in this Act, any law in force in the said State immediately before the commencement of the Part B States (Laws) Act, 1951 , relating to such deposits, shall continue to apply thereto as if that law had not been repealed.]
SECTION 03: INTERPRETATION CLAUSE
In this Act- "depositor" means a person by whom, or on whose behalf, money has been heretofore, or shall be hereafter, deposited in a Government Savings Bank and "deposit" means money so "deposited": 5 ["Secretary" means in the case of a Post Office Savings Bank the Postmaster- General appointed for the area in which the Saving Bank is situate], 6 [or if that area is in Pakistan, by the Postmaster-General for such area in India as the Central Government may by general or special order specify in this behalf]: 7 ["minor" means a person who is not deemed to have attained his majority under the Indian Majority Act, 1875 ]: 8 ["prescribed" means prescribed by rules made under this Act.]
SECTION 04: NOMINATION BY DEPOSITOR
(1) Notwithstanding anything contained in any law for the time being in force, or in any disposition, whether testamentary or otherwise, by a depositor in respect of his deposit, where any nomination made in the prescribed manner purports to confer on any person the right to receive the deposit on the death of the depositor, the nomionee shall, on the death of the depositor become entitled, to the exclusion of all other persons to be paid the deposit, unless the nomination is varied or cancelled in the prescribed manner.
(2) Any nomination referred to in sub-section (1) shall become void if the nominee predeceases, or where there are two or more nominees, all the nominees predecease, the depositor.
(3) Where the nomineee is a minor it shall be lawful for the depositor to appoint in the prescribed manner any person to receive the deposit in the event of his death during the minority of the nominee.]
SECTION 04A: PAYMENT ON DEATH OF DEPOSITOR
(1) If a depositor dies and there is in force at the time of the death of the depositor a nomination in favour of any person, the deposit shall be paid to the nominee.
(2) Where the nominee is a minor, the deposit shall be paid-
(a) in any case where a person has been appointed to receive it under subsection (3) of section 4- , to that person; and
(b) where there is no such person, to the guardian of the minor for the use of the minor. .
(3) Where a deposit is payable to two or more nominees and either or any of them is dead, the deposit shall be paid to the surviving nominee or nominees.
(4) If a depositor dies and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 , is not within three months of the death of the depositor produced to the Secretary of the Government Saving Bank in which the deposit is, then-
(a) if the deposit does not exceed 11 [such limit as may be prescribed], the Secretary may pay the same to any person appearing to him to be entitled to receive it or to administer the estate of the deceased; and
(b) within the 12 [limit prescribed under clause (a)], any officer employed in the management of a Government Savings Bank who is empowered in this behalf by a general or special order of the Central Government may, to the extent to which he is empowered by such order and subject to any general or
special orders of the Secretary in this behalf, pay the deposit to any person appearing to him to be entitled to receive it or to administer the estate.
(5) Nothing contained in this section shall be deemed to require any person to accept payment of a deposit, which is a time deposit, before it has become due.]
OBJECTS AND REASONS "Under Section 4 - of the Government Savings Banks Act, 1873 deposits in a Government Savings Bank belonging to the estate of a deceased person are payable to his legal heirs on production of probate of his will or letters-of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925 ; but if the deposit does not exceed Rs. 5,000 and any of the documents referred to above is not produced within a period of three months of the death of the depositor, payment can be paid by the postal authorities to any person appearing to them to be entitled to receive it or to administer the estate of the deceased. 2. Suggestions have been made from time to time that, as the production of legal proof of succession involves considerable delay and expense, the depositors may be allowed the right to nominate a person or persons to receive the amounts due to the deceased depositors without the production of legal documents. This Bill, accordingly, seeks to allow nomination facilities to the depositors in the Government Savings Bank by amending the Savings Banks Act, 1873 "- S.O.R., Gaz. of Ind., 1959, Extra, Pt. II, Section 2 - , page 865.
SECTION 05: PAYMENT TO BE A DISCHARGE
13 [Any payment made in accordance with the foregoing provisions of this Act] shall be a full discharge from all further liability in respect of the money so paid: Savings of right of executor. But nothing herein contained precludes any executor, or other representative of the deceased, from recovering from the person receiving the same the amount remaining in his hands after deducting the amount of all debts or other demands lawfully paid or discharged by him in due course of administration. Savings of right of creditor. And any creditor or claimant against the estate of the deceased may recover his debt or claim out of the money paid under this Act, 14 [* * * * * * * * * *] to any person, and remaining in his hands unadministered, in the same manner and to the same extent as if the latter had obtained letters of administration of the estate of the deceased.
SECTION 06: SECURITY FOR DUE ADMINISTRATION
The Secretary of any such Bank 15 [or any officer empowered 16 [under sub-section (4) of section 4A - ]] may take such security as he thinks necessary from any person 17 [to whom he pays any money under sub-section (4) of section 4A - ] for the due administration of the money so paid, and he may assign the said security to any person interested in such administration.
SECTION 07: POWER TO ADMINISTER OATH
For the purpose of ascertaining the right of the person claiming to be entitled as aforesaid, the Secretary of any such Bank 18 [or any officer empowered 19 [under sub-section (4) of section 4A - ]] may take evidence on oath or affirmation according to the law for the time being relating to oaths and affirmations. Penalty for false statements. Any person who, upon such oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall be deemed guilty of an offence under section 194 of the Indian Penal Code –
SECTION 08: DEPOSIT WHEN EXCLUDED IN COMPUTING COURT-FEES
Where the amount of the deposit belonging to the estate of a deceased depositor does not exceed 20 [three thousand rupees,] such amount shall be excluded in computing the fee chargeable, under the Court-fees Act, 1870 , on the probate, or letters of administration, or certificate (if any), granted in respect of his property: Provided that the person claiming such probate or letters or certificate shall exhibit to the Court authorized to grant the same a certificate of the amount of the deposit in any Government Savings Bank belonging to the estate of the deceased. Such certificate shall be signed by the Secretary of such Bank, and the Court shall receive it as evidence of the said amount.
SECTION 09: ACT NOT TO APPLY TO DEPOSITS BELONGING TO ESTATES OF EUROPEAN SOLDIERS OR DESERTERS
[Omitted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), Section 7 - (18-3-1959).]
SECTION 10: PAYMENT OF DEPOSITS TO MINOR OR GUARDIAN
Any deposit made by, or on behalf of, any minor, may be paid to him personally, if he made deposit, or to his guardian for his use, if the deposit was made by any person other than the minor, together with the interest accrued thereon. The reeceipt of any minor or guardian, for money paid to him under this section, shall be a sufficient discharge therefor.
SECTION 11: LEGALIZATION OF LIKE PAYMENTS HERETOFORE MADE
[Omitted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 7 (18-9-1959).]
SECTION 12: PAYMENT OF DEPOSITS BELONGING TO LUNATICS
If any depositor becomes insane or otherwise incapable of managing his affairs, and if such insanity or incapacity is proved to the satisfaction of the Secretary of the Bank in which his deposit may be, such Secretary may, from time to time, make payments out of the deposit to any proper person, and the receipt of such person, for money paid under this section, shall be a sufficient discharge therefor. Where a committee or manager of the depositor's estate has been duly appointed, nothing in this section authorizes payments to any person other than such committee or manager.
SECTION 13: PAYMENT OF MARRIED WOMEN'S DEPOSITS
Any deposit made by or on behalf of a married woman, or by or on behalf of a woman who afterwards marries, may be paid to her, whether or not 21 [ section 20 of the Indian Succession Act, 1925 ] applies to her marriage; and her receipt for money paid to her under this section shall be a sufficient discharge therefor.
SECTION 14: PROTECTION OF ACTION TAKEN IN GOOD FAITH
No suit or other legal proceeding shall lie against the Secretary or any other officer of the Government in respect of anything which is in good faith done or intended to be done under this Act.]
SECTION 15: POWER TO MAKE RULES
(1) The Central Government may, by notification in the Official Gazette, make rules' for carrying out the. purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the persons by whom and the terms and conditions subject to which deposits may be made in a Government Savings Bank;
(b) the maximum limits of deposits and the conditions as to interest or discount relating to deposits generally, or any class of deposits in particular;
(c) the non-accrual of interest on deposits when the maximum limits are exceeded and the recovery of any interest paid in excess in the same manner as an arrear of land revenue or in any other manner;
(d) the persons to whom and the manner in which deposits may be paid;
(e) the form of nominations, the manner in which, the persons in whose favour and the conditions and restrictions subject to which, nominations may be made and the registration of nominations;
(f) the variation or cancellation of nominations;
(g) the fees that may be levied for registration of nominations and for variation or cancellation thereof;
(h) the manner in which any person may be appointed for the purpose of sub-section (3) of section 4- .
25 [(i) the limit under clause (a) of sub-section (4) of section 4A- .]
(3) Every rule made under this section shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.] Footnotes:
1. Substituted for "all the provinces of India" by A.L.O., 1950.
2. Words "except the State of Jammu and Kashmir" were omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956), Section 2 and Sch. (1-11-1956).
3. Commencement clause was repealed by the Repealing Act, 1874 (14 of 1874), Section I and Sch,, Pt. 1.
5. Substituted for the original definition by the Government Savings Bank (Amendment) Act, 1923 (16 of 1923), Section 2.
6. Inserted by A.C.A.O.,the Government Savings Bank (Amendment) Act, 1923 (16 of 1923), Section 2, 1948.
7. Substituted for the original definition by the Amending Act, 1916 (13 of 1916), section 2 Sch.
8. Inserted by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), section 2 (18-9-1959).
11. Substituted for the words "five thousand rupees" by Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).
12. Substituted for the words "aforesaid limit of five thousand rupees;Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).
13. Substituted for the words "such payment", by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 4 (18-9-1959).
14. Words "or Act No. 26 of 1855" were omitted,the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 4 (18-9-1959).
15. Inserted by the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), Section 4.
16. Substituted for "under Section 4", 1959 (45 of 1959), Section 5.
17. Substituted for "to whom he pays any money under Section 4",the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), Section 4.
18. Inserted by the Government Savings Banks (Amendment) Act, 1923 (16 of 1923), S. 4.
19. Substituted for the words "under Section 4" 1959 (45 of 1959), S. 6 (18-9-1959).
20. Substitutedfor "one thousand rupees", by the Government Savings Banks (Amendment) Act, 1917(17 of 1917), Section 2.
21. Substituted for "the Indian Succession Act, 1865, Section 4", by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), S. 8 (18-9-1959).
25. Inserted by the Government Savings Laws (Amendment) Act (56 of 1985), S. 2 (4-9-85).
26. For Post Office Savings Banks Rules, 1965, made under this section, see Gaz. of Ind., 25-1-1965, Pt. II, Section 3(i), Ext., page 35. (Amended by G. S. R. 495 of 1965, dated 25-3-1965). Rules in force before the commencement of these rules, i.e. 1-3-1965, and the Post Office Savings Banks (Nomination) Rules, 1960 are repealed by these Rules. National Savings Scheme Rules, 1987-See Gaz. of Ind., 3-3-1987, Pt. II, S. 3(i), Ext., p. 2 (No. 51), GSR 335 (E/87).
POST OFFICE (MONTHLY INCOME ACCOUNT) RULES, 1987
In exercise of the powers conferred by
Section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makel the following rules, namely –
RULE 1 SHORT TITLE AND COMMENCEMENT
1) These rules may be called the Post Office (Monthly Income Account) Rules, 1987.
(2) They shall come into force on the 15th day of August, 1987.
2 Provided that no such deduction shall be made if the account is losed after expiry of three years from the date of opening of such Account.
RULE 2 DEFINITIONS
-In these rules, unless the context otherwise requires,-
(a) 'account' means a savings account opened by a depositor in accordance with the provisions of these rules;
(b) 'Act' means the Government Savings Bank Act, 1873 (5 of 1873) ;
(c) 'depositor' means a person by whom, or on whose behalf, money is deposited under these rules in an account and "deposit" means the money so deposited ;
(d) 'post office' means any post office in India doing savings bank work and authorised to open an account under these rules ;
(e) words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981 shall have the meanings respectively assigned to them in those rules.
RULE 3 APPLICATION OF THE POST OFFICE SAVINGS BANK GENERAL RULES, 1981 AND THE POST OFFICE SAVINGS ACCOUNT RULES, 1987
-The provisions of the Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules, 1987, as may be, apply in relation to matters for which no provision has been made in these rules.
RULE 4 OPENING OF ACCOUNTS
aaaaa A depositor may operate more than one account under these rules subject to the condition that deposits in all accounts taken together shall not exceed rupees three lakhs in case of single account and rupees six lakhs in case of joint account."; xxxxa "Note.—For the purpose of maximum balance, the depositors share in the balance of a joint account shall be taken as one-half or one-third of such balance according to the account is held by two adults or three adults."
RULE 5 DEPOSITS AND WITHDRAWALS
aaaab aaaac "(1) There shall be only one deposit in the account in the multiple of one thousand rupees not exceeding rupees three lakhs in case of single account and rupees six lakhs in case of joint account."
(2) Except as provided in Rule 10 , no withdrawal shall be permitted under these rules before the expiry of a period of six years from the date of opening of an account.
RULE 6 MODE OF DEPOSIT
(1) The deposit under these rules may be made:
(a) in cash, or
(b) by cheque or demand draft drawn in favour of depositor or the postmaster of the post office and endorsed in favour the post- master.
(2) Where deposit is made by cheque or demand draft, the date of deposit under these rules shall be the date of encashment of the cheque or the demand draft.
RULE 7 NOMINATION
(1) The depositor may at the time of opening the account under these rules, nominate a person or persons who, in the event of death of the depositor, shall become entitled to payment of amount due on the account.
(2) If such nomination is not made at the time of opening the account, it may be made by the depositor at any time after che opening of the account but before its closure by means of an application, accompanied by the pass book to the postmaster of the Post Office.
RULE 8 INTEREST ON DEPOSIT
1 "(1) The deposit made under these rules shall bear interest at the rate of-
(a) 12 per cent per annum in respect of deposits made on or after the 15th day of August, 1987 but before the 24th day of April, 1992;
(b) 14 per cent per annum in respect of deposits made on or after the 24th day of April, 1992 but before the 2nd day of September, 1993;
(c) 13 per cent per annum in respect of deposits made on or after the 2nd day of September, 1993 but before the 1st day of January, 1999;
(d) 12 per cent per annum in respect of deposits made on or after the 1st day of January, 1999 but before the 15th day of January, 2000;
(e) 11 per cent per annum in respect of deposits made on or after the 15th day of January, 2000 but before the 1st day of March, 2001;
(f) 9.5 per cent per annum in respect of deposits made on or after 2 [the 1st day of March, 2001 but before the 1st day of March, 2002].
3 (g) 9 per cent per annum in respect of deposits made on or after the 1st day of March, 2002.
(2) The interest shall be payable monthly to the depositor on completion of a month from the date of deposit.
(3) If so authorised, interest payable monthly shall be deposited by the post office in the savings account of the depositor held at the post office where deposit is held subject to the condition that by so depositing the interest, maximum limit on balances in savings account is not exceeded.
(4) If the interest payable every mo^th is not claimed by a depositor, such interest will not earn any additional interest.
12 "(5) Interest shall be rounded off to nearest multiple of rupee one and for this purpose any amount of 50 paise or more shall be treated as rupee one and any amount less than 50 paise shall be ignored."
14 (6) A Post Office shall, as soon as it comes to the notice that a deposit made under Rule 4 by a subscriber exceeds the prescribed ceilings specified therein, such Post Office shall request the subscriber to withdraw the excess deposit immediately.
Explanation.—"Post Office" means and includes a Head or Sub-Post Office.
14 (7) The excess amount referred to in sub-rule (6) shall carry an interest at the rate applicable from time to time to the Post Office Savings Account and shall be payable to such subscriber on such amount.
14 (8) The interest referred to in sub-rule (7) shall be admissible from the date of deposit of the excess amount till the end of the month preceding the month in which the subscriber has been requested to withdraw such excess amount in the account.
RULE 9 CLOSURE OF ACCOUNT
(1) The deposit made at the time of opening of account shall be paid by the post office at which the account stands to the depositor on or after expiry of six years from the date of the opening along with bonus equal to 10 per cent of the amount deposited-on production of the pass book accompanied by a written application.
(2) In case of death of a depositor before maturity, account may be closed and deposit refunded along with interest upto the month preceding the month in which refund is made.
RULE 9A POST-MATURITY INTEREST
4 —Where repayment of a deposit, inclusive of bonus, under Rule 9 has become due but has not been ma de, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions, namely :—
(a) The interest shall be simple and shall be calculated at the rate applicable from time to time to savings accounts of the type of single or joint account.
(b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.
(c) The interest shall be paid to the depositor in lump sum at the time of repayment of amount due.
RULE 10 PREMATURE CLOSURE OF ACCOUNT
(1) Notwithstanding anything contained in sub-rule (2) of Rule 5 , on an application made by the depositor In this regard, he may be permitted to withdraw the deposit and close the account any time after expiry of a period of one year from the date of opening such account, subject to fhe condition that an amount equal to 5 [3.50 per cent ] of the deposit shall be deducted and remainder paid to him.
RULE 11 PASS BOOK
(1) 0n opening an account, the depositor shall be [iven a pass book bearing the date of opening of account, the number of his pcount his name and address and the amount deposited and also the jionthly interest payafcfe alongwith the date on which the deposit will be final payment.
POST OFFICE SAVINGS BANK GENERAL RULES, 1981
17th December, 1981
G.S.R. 662(E).—In exercise of the powers conferred by
Section 15 of the Government Savings Banks Act, 1873(5 of 1873) the Central Government hereby makes the following rules, namely.—
RULE 1 SHORT TITLE, APPLICATION AND COMMENCEMENT
(1) These rules may be called the Post Office Savings Bank General Rules, 1981.
(2) They shall be applicable to the following accounts in the Post Office Savings Bank, namely :—
(a) Savings Account.
(b) Cumulative Time Deposit Account. (c) Recurring Deposit Account. (d) Time Deposit Account.
(3) They shall come into force on the 1st day of April 1982
RULE 2 DEFINITIONS
—In these rules, unless the context otherwise requires.—
(a) "account" means a Savings Account, a Cumulative Time Deposit Account, a Recurring Deposit Account count or a Time Deposit Account;
(b) "authorised" means authorised by the Director General, Posts and Telegraphs;
(c) "balance" means the balance at credit of an account:
(d) "Branch Savings Bank" means a Branch Post Office which is functioning also as a Savings Bank;
(e) "Cumulative Time Deposit Account" means an account opened under the Post Office Savings Bank (Cumulative Time Deposit) Rules, 1959 or under the Post Office Cumulative Time Deposit Rules, 1981;
(f) "Extra Departmental Sub Savings Bank" means a Sub Savings Bank in charge of a part-time employee;
(g) "Form" means a form appended to these rules;
(h) "guardian" in relation to a minor or a person or unsound mind means —
(i) either father or mother ; and
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