Section 1 - Short title This Act may be called the Government Savings 2[Promotion] Act, 1873. Local extent.- It extends to 3[the whole of India4[***]] [***]5 6[***] In this Act, unless the context otherwise requires,-- "account" means an account opened under any of the Savings Schemes; "administrator" means an administrator as defined in clause (a) of section 2 of the Indian Succession Act, 1925 (39 of 1925); "Authorised Officer" means-- in the case of a Post Office Savings Bank, an officer authorised by the Director General Posts; and in the case of State Bank of India or a banking company or any other company or institution, an officer so authorised by State Bank of India or that banking company or that other company or that institution, as the case may be; "banking company" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); "depositor" means an individual by whom, or on whose behalf money has been deposited in a Government Savings Bank and "deposit" means the money so deposited; "executor" means an executor as defined in clause (c) of section 2 of the Indian Succession Act, 1925 (39 of 1925); "Government Savings Bank" means-- a Post Office Savings Bank; or State Bank of India or a banking company, or any other company or institution, as the Central Government may, by notification in the Official Gazette, specify for the purposes of this Act; "guardian", in relation to a minor or a person of unsound mind means-- either of the parents; where neither parent is alive or where neither or the only living parent is incapable of acting as such, a person entitled under the law for the time being in force to have the care of the property of a minor or a person of unsound mind, as the case may be; legal guardian appointed by a court; "minor" means a person who has not attained the age of majority under the Indian Majority Act, 1875 (9 of 1875); "prescribed" means prescribed by rules made under this Act; "Savings Schemes" means the Government Savings Schemes, including Savings Certificates and Public Provident Fund Scheme, listed in the Schedule; "Schedule" means the Schedule annexed to this Act. The Central Government may, by notification in the Official Gazette, frame new Savings Schemes or amend or discontinue existing Savings Schemes to promote household savings in the country. The Central Government may, by notification in the Official Gazette, include or omit or amend Savings Schemes in the Schedule. The notification referred to in sub-section (1) may include any or all of the following provisions, depending on the design of such Scheme, namely:-- the persons who shall be eligible to make deposit in a Savings Scheme; the terms and conditions subject to which deposit may be made; the manner of calculation, frequency of payment and rate of interest payable on the deposit; the maximum and minimum limits of deposit; premature closure, withdrawal of deposit, grant of loans against deposit and transfer of deposit; any other provision depending on the purpose and design of the Savings Scheme. A minor who has attained the age of ten years may open and operate an account in the Government Savings Bank, if so permitted under a Savings Scheme. Subject to the provisions of sub-section (1), the guardian of a minor may open and operate an account on behalf of the minor, till he becomes a major.]7 8[(1) The depositors shall designate one or more individuals, as nominee or nominees, who shall be entitled, in the event of the death of the depositor of a single account, or all the depositors of a joint account, as the case may be, to receive the sum due, as an owner or a trustee, and to the extent, as may be specified by the depositor at the time of making nomination: Provided that if the depositor is a minor or a person of unsound mind, the nominee shall be designated by the guardian.] (2) Any nomination referred to in sub-section (1) shall become void in the nominee predeceases, or where there are two or more nominees, all the nominees predecease, the depositor. (3) Where the nominee 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. 9[(4) The transfer of deposit, if permitted under a Savings Scheme, shall automatically cancel a nomination previously made.]10 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. Where the nominee is a minor, the deposit shall be paid -- in any case where a person has been appointed to receive it under sub-section (3) of section 4, to that person; and where there is no such person, to the guardian of the minor for the use of the minor. 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. 11[(3A) Where the deposit belongs to a minor or to a person of unsound mind who dies and there is no nominee immediately before the date of commencement of Part I of Chapter VIII of the Finance Act, 2018, the deposit shall be paid to the guardian.] (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 (39 of 1925.), is not within three months of the death of the depositor produced to the Secretary of the Government Savings Bank in which the deposit is, then -- if the deposit does not exceed12[such limits 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 13[deceased in accordance with such procedure as may be prescribed.] 14[***] 15[***]] 16[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: Saving of right of executor.- 17[Nothing] herein contained precludes any executor or administrator, 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. Saving of right of creditor.- 18[Every creditor] or claimant against the estate of the deceased may recover his debt or claim out of the money paid under this Act,19[***], to any person, and remaining in his hands unadministered, in the same manner and to the same extent as 20[if that person had obtained] letters of administration of the estate of the deceased. The Secretary of 21[a Government Savings Bank] 22[under sub-section (4) of section 4A] may take such security as he thinks necessary from any person 23[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 For the purpose of ascertaining the right of the person claiming to be entitled as aforesaid, the Secretary of 24[a Government Savings Bank] 25[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 193 of the Indian Penal Code.(45 of 1860). The Central Government through any designated authority, may call for such information, documents and evidence as it may deem necessary, in relation to any account, for carrying out the purposes of this Act.]26 Where the amount of the deposit belonging to the estate of a, deceased depositor does not exceed27[the prescribed limit] such amount shall be excluded in computing the fee chargeable, under the Court-fees Act, 1870, (7 of1870) 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. 28[***] Any deposit made by, 29[or on behalf of, a minor], may be paid to him personally, if he made the deposit, or to his guardian 30[for the use of such minor], if the deposit was made by any person other than the minor, together with the interest accrued thereon. The 31[receipt of the minor] or guardian, for money paid to him under this section, shall be a sufficient discharge therefore. 32[***] 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 33[Government Savings Bank] in which his deposit may be, such Secretary may, from time to time, make payments out of the deposit to 34[any proper person], and the receipt of 35[such guardian], for money paid under this section, shall be a sufficient discharge therefore. Where a committee or manager of the depositor's estate has been duly appointed, 36[payments shall be made to] such committee or manager. Any depositor who suffers from physical infirmity, including blindness may operate and make a deposit through any literate individual whom he authorizes.]37 Deposits made by married women 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 38[section 20 of the Indian Succession Act, 1925 (39 of 1925.)]{ The relevant provisions of the Indian Succession Act, 1925 (39 of 1925) may now be referred }, section 4, applies to her marriage; and her receipt for money paid to her under this section shall be a sufficient discharge therefore. 39[MISCELLANEOUS No suit or other legal proceeding shall lie against the Secretary or any other officer of the 40[Central Government] in respect of anything which is in good faith done or intended to be done under this Act. The amount standing to the credit of any depositor in the Public Provident Fund Scheme shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the depositor.]41 The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act. 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 : -- 42[***] 43[(b) 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 a 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 nomination ; 44[(g) the fees that may be levied for discharge of any services under this Act;] (h) the manner in which any person may be appointed for the purpose of sub-section (3) of section 4. 45[(i) the limit and procedure under clause (a) of sub-section (4) of section 4A; (j) the mode of making deposits, such as physical, electronic or through use of any other tools of communication and information technology; (k) benchmark for interest rates on deposits with a view to ensure financial sustainability of Savings Schemes; (l) amount to be excluded in computing the court fee chargeable under the Court-fees Act, 1870 (7 of 1870) for the purpose of section 8 of the Act; (m) mechanism for redressal of grievances and settlement of disputes; (n) any other matter which is required to be or may be, prescribed.] 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 of 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.] The Government Savings Certificates Act, 1959 (46 of 1959) and the Public Provident Fund Act, 1968 (23 of 1968) are hereby repealed. Notwithstanding such repeal and without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897), with respect to repeals— anything done or any action taken or purported to have been done or taken, including any rule, notification, order or notice made or issued or any direction given under the repealed enactments shall be deemed to have been done or taken under the corresponding provisions of this Act; subject to the provisions of clause (a), any instrument executed or certificate issued, or anything done under or in pursuance of any repealed enactment shall, if is in force at the commencement of Part I of Chapter VIII of the Finance Act, 2018, continue to be in force in so far as it could have been executed, or issued or done under or in pursuance of such Part, shall have effect as if the same has been executed, issued or done under or in pursuance of the provisions contained in the aforesaid Part; (c) all deposits made or accounts or certificates held under the repealed enactments shall be deemed to be deposits or holdings in the Savings Scheme made under the corresponding provisions of this Act; and any proceeding under the repealed enactments pending immediately before the commencement of Part I of Chapter VIII of the Finance Act, 2018 before any court shall, subject to the provisions of this Act, continue to be heard and disposed of by the said court. The repeal shall not prejudicially affect the interest of depositors who, before the commencement of Part I of Chapter VIII of the Finance Act, 2018, made deposits or were issued certificates or made contribution to any scheme under the repealed enactments.]46 47[THE SCHEDULE [See section 3A] This Act applies to the following Government Savings Schemes: PART A Existing Savings Schemes Post Office Savings Account National Savings Monthly Income (Account) National Savings Recurring Deposit Sukanya Samridhhi Account National Savings Time Deposit (1 year, 2 years, 3 years and 5 years) Senior Citizens' Savings Scheme Savings Certificates:-- Kisan Vikas Patra (discontinued from 1st December, 2011 and restarted from 23rd September, 2014); National Savings Certificates (VIII Issue). Public Provident Fund Scheme PART B Discontinued Savings Schemes National Savings Scheme, 1987 National Savings Scheme, 1992 Block Deposit Account Defence Savings Account Gift Coupons Cumulative Time Deposit Accounts:-- 5-year account 10-year account 15-year account 5-year Prize Bonds 5-year Premium Prize Bonds 5-year Compulsory Deposit Account Scheme, 1963 5-year Fixed Deposit Account 5-Year Cash Certificates 10-Year Defence Savings Certificates 12-Year National Savings Certificates 7-Year National Savings Certificates 5-Year National Savings Certificates 10-Year Treasury Savings Deposits Certificates 15-Year Annuity Certificates (I series) 10-Year National Plan Savings Certificates 10-Year Treasury Savings Deposits Certificates 12-Year National Plan Savings Certificates 15-Year Annuity Certificates (II series) 10-Year Defence Deposit Certificates 12-Year National Defence Certificates 10-Year National Savings Certificates (I-Issue) 7-Year National Savings Certificates (II-Issue) 7-Year National Savings Certificates (III-Issue) 7-Year National Savings Certificates (IV-Issue) 7-Year National Savings Certificates (V-Issue) 12-Year National Savings Annuity Certificates 5-Year National Development Bonds 6-Year National Savings Certificates (VI-Issue) 6-Year National Savings Certificates (VII-Issue) 10-Year Social Security Certificates Indira Vikas Patras 10-Year National Savings Certificates (IX-Issue).] Substituted by the Finance Act, 2018, for the following :- "An Act to amend the law relating to Government Savings Banks."↩ Substituted by the Finance Act, 2018, for the following :- "Banks"↩ Subs.by the A.O.1950, for "all the provinces of India" which had been subs. by the A.O.1948, for " the whole of British India "↩ {The words " except the State of Jammu and Kashmir " which were subs. by Act 3 of 1951, for " except Part B States " omitted by Act 62 of 1956, s.and Sch.}.↩ The commencement cl.rep. by Act 16 of 1874, s.1 and Sch., Pt.I.}↩ Omitted by the Finance Act, 2018, the previous text was :- "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 State An immediately before the commencement of the Part B States (laws),.Act, 1951, (3 of 1951) relating to such deposits, shall continue to apply thereto as if that law had not been repealed.]"↩ Substituted by the Finance Act, 2018, for the following :- "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: 1[Provided that on and after the date on which the Finance Bill, 2005 receives the assent of the President, the provisions of this clause shall have effect as if for the words "a person", the words "an individual" had been substituted.] { Subs. by Act 16 of 1923, s.2, for the original definition.} [" Secretary " means, in the case of a Post Office Savings Bank, the Postmaster-General appointed for the area in which the Savings Bank is situate, { Ins.by the A.O.1948.} [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] { Subs. by Act 13 of 1916, s.2 and Sch., for the original definition.} [" minor " means a person who is not deemed to have attained his majority under the Indian Majority Act, 1875.(9 of 1875)] 2[prescribed" means prescribed by rules made under this Act.]"↩ Substituted by the Finance Act, 2018, for the following :- "(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 supports to confer on any person the right to receive the deposit on the death of the depositor, the nominee 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."↩ Inserted by the Finance Act, 2018.↩ Substituted for section 4 by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959. prior to substitution section 4 stood as follows "[4.Payment on death of depositor.- If a depositor dies and probate of his will or letters of administration of his estate or a succession certificate granted under the Indian Succession Act, 1925, (30 of 1925) is not within three months of the death of the depositor produced to the Secretary of the Government Savings Bank in which the deposit is, then- (a) if the deposit does not exceed five thousand rupees, 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 aforesaid limit of five thousand rupees, 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.].↩ Inserted by the Finance Act, 2018.↩ Substituted for "five thousand rupees,." by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Substituted by the Finance Act, 2018, for the following :- "deceased; and"↩ Omitted by the Finance Act, 2018, the previous text was :- "(b) within the [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."↩ Omitted by the Finance Act, 2018, the previous text was :- "(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."↩ Substituted for "Such payment" by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Substituted by the Finance Act, 2018, for the following :- "But nothing"↩ Substituted by the Finance Act, 2018, for the following :- "And any creditor"↩ Words "Or Act No.26 of 1855" omitted by he Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Substituted by the Finance Act, 2018, for the following :- "if the latter had obtained"↩ Substituted by the Finance Act, 2018, for the following :- "any such Bank {Ins.by Act 16 of 1923, s.4.} [or any officer empowered[under sub-section (4) of section 4A]]"↩ Substituted for "under section 4" by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Substituted for "to whom he pays any money under section r" by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Substituted by the Finance Act, 2018, for the following :- "any such Bank {Ins.by Act 16 of 1923, s.4.} [or any officer empowered [under sub-section 4 of section 4A]"↩ Substituted for "under section 4" by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Inserted by the Finance Act, 2018↩ Substituted by the Finance Act, 2018, for the following :- "[three thousand rupees,]↩ Section 9 and 11 omitted by he Government Savings Bank (Amendment) Act, 1959, w.e.f. 18 -09-1959. prior to omission section 9 and 11 stood as follows "9. Act not to apply to deposits belonging to estates of European soldiers or deserters.- Nothing hereinbefore contained applies to money belonging to the estate of any European officer, non-commissioned officer, or soldier dying in Government service in India, or of any European who, at the time of his death, was a deserter from the said service. 11. Legalization of like payments here to force made.- All payments of deposits here to force made to minors or their guardians by any Secretary of a Government Savings Bank shall be deemed to have been made in accordance with law."↩ Substituted by the Finance Act, 2018, for the following :- "or on behalf of, any minor"↩ Substituted by the Finance Act, 2018, for the following :- "for his use"↩ Substituted by the Finance Act, 2018, for the following :- "receipt of any minor"↩ Section 9 and 11 omitted by he Government Savings Bank (Amendment) Act, 1959, w.e.f. 18 -09-1959. prior to omission section 9 and 11 stood as follows "9. Act not to apply to deposits belonging to estates of European soldiers or deserters.- Nothing hereinbefore contained applies to money belonging to the estate of any European officer, non-commissioned officer, or soldier dying in Government service in India, or of any European who, at the time of his death, was a deserter from the said service. 11. Legalization of like payments here to force made.- All payments of deposits here to force made to minors or their guardians by any Secretary of a Government Savings Bank shall be deemed to have been made in accordance with law."↩ Substituted by the Finance Act, 2018, for the following :- "Bank"↩ Substituted by the Finance Act, 2018, for the following :- "any proper person"↩ Substituted by the Finance Act, 2018, for the following :- "such person"↩ Substituted by the Finance Act, 2018, for the following :- "nothing in this section authorizes payments to any person other than"↩ Inserted by the Finance Act, 2018.↩ Substituted "the Indian Succession Act, 1865, (10 of 1865)" by the Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959.↩ Section 14 substituted by he Government Savings Bank (Amendment) Act, 1959, w.e.f. 18-09-1959. Prior to substitution section 14 stood as follows "14. Rules regulating certificates under section 8, and payments under section 10, 12 or 13.- All Certificates under section 8, and all payments under section 10, section 12 section 13, shall be respectively granted and made by the Secretary of the Bank, subject to such rules consistent with this Act as the Central Government may, from time to time, prescribe."↩ Substituted by the Finance Act, 2018, for the following :- "Government"↩ Inserted by the Finance Act, 2018.↩ Omitted by the Finance Act, 2018, the previous text was :- "(a) the persons by whom and the terms and conditions subject to which deposits may be made in a Government Savings Bank ;"↩ Substituted by the Finance Act, 2018, for the following :- "(b) the maximum limits of deposits and conditions as to interest or discount relating to deposits generally, or any class of deposits in particular;"↩ Substituted by the Finance Act, 2018, for the following :- "(g) the fees that may be levied for registration of nominations and for variation or cancellation thereof;"↩ Substituted by the Finance Act, 2018.↩ Inserted by the Finance Act, 2018↩ Inserted by the Finance Act, 2018.↩
Section 2 - Omitted
Section 3 Interpretation-clause
Section 3A Framing of Savings Schemes
Section 3B Deposit by minor
Section 4 - Nomination by depositor
Section 4A - Payment on death of depositor
Section 5 - Payment to be a discharge
Section 6 - Security for due administration
Section 7 - Power to administer oath
Section 7A - Power to call for information
Section 8 - Deposit when excluded in computing court fees
Section 9 - Omitted
Section 10 - Payment of deposits to minor or guardian
Section 11 - Omitted
Section 12 - Payment of deposits belonging to lunatics
Section 12A - Operation of account by differently abled persons
Section 13 - Payment of married womens deposits
Section 14 - Protection of action taken in good faith
Section 14A - Protection against attachment
Section 15 - Power to make rules
Section 16 Repeal and savings
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