Preamble - INDIRA VIKAS PATRA RULES, 1986

PREAMBLE

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

Rule 1 - Short title and commencement

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

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

Rule 2 - Definitions

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

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

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

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

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

Rule 3 - Denomination of certificates

The certificates shall be issued in denominations of Rs. 200, Rs. 500, Rs. 1,000 and Rs. 5,000.

Rule 4 - Purchase of certificates

(1) The certificates of denominations of Rs. 200, Rs. 500, Rs. 1,000 and Rs. 5,000 may be purchased respectively for Rs. 100, Rs. 250, Rs. 500 and Rs. 2,500.

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

Rule 5 - Procedure for purchase of certificates

(1) A certificate may be purchased at a post off ice on payment by any one of the following modes, namely :--

(i) by cash; or

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

(iii) by presenting a duly signed withdrawal form or cheque together with the Pass Book for withdrawal from post office savings account standing to the credit of the purchaser at the same post office.

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

Rule 6 - Issue of certificates

(1) On payment being made by cash, a certificate shall be issued immediately and the date of such certificate shall be the dale of payment.

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

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

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

Rule 7 - Replacement of certificate

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

(2)  A certificate lost, stolen, mutilated, defaced or destroyed beyond recogni?tion, will not be replaced by any post office.

Rule 8 - Encashment of certificate

(1) A certificate of any denomination may be encashed at any time after the expiry of a period of five years from the date of issue by presenting it before the post office of issue.

(2) Where a certificate of any denomination has been purchased on or after the 1st April, 1987, it may be encashed at any time after the expiry of a period of five and half years from the date of issue by presenting it before the post office of issue.

(2A) Where a certificate of any denomination has been purchased on or after the 1st March, 1988, it may be encashed at any time after the expiry of a period of five years from the date of issue by presenting it before the post office of issue :

Provided that a certificate may be encashed at any other post office if the officer-incharge of that post office is satisfied on verification from the post office of issue that such certificate was issued by the said post office.

[(2B) Where a certificate of any denomination has been purchased on or after 2nd September, 1993, it may be encashed at any lime after the expiry of five years and six months from the date of issue by presenting it before the Post Office of Issue.]

[(2C) Where a certificate of any denomination has been purchased on or after the 1st January, 1999, it may be encashed at any time after the expiry of six years from the date of issue by presenting it before the post office of issue.]

(3) In the case of certificate purchased on or before the 31st March, 1987 and on or after the 1st March, 1988, interest at the rate of 14.97 per cent per annum compounded on the initial sale value of the certificate shall be deemed to have accrued at the end of each year, calculated from the dale of initial purchase of the certificate from the post office up to the end of the fifth year for the purpose of tax payable by a holder in the relevant assessment year under any law for the time being in force.]

[(4) In the case of a certificate purchased on or after 1st April, 1987 and on or before 29th February, 1988, or on or after 2nd September, 1993 and on or before 31st December, 1998, interest at the rate of 13.43 per cent per annum compounded on the initial sale value of the certificate shall be deemed to have accrued at the end of each year, calculated from the date of initial purchase of the certificate from the post office upto the end of the fifth year for the purpose of tax payable by a holder in relevant assessment year under any law for the lime being in force.]

(5) In the case of a certificate purchased on or after 1st January, 999, interest al the rate of 12.25 per cent per annum compounded on the initial sale value of the certificate shall be deemed to have accrued at the end of each year, calculated from the date of initial purchase of the certificate from the post office upto the end of the sixth year for the purpose of lax payable by a holder in relevant assessment year under any law for the lime being in force.]

Rule 9 - Discharge of certificate

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

Rule 10 - Responsibility of the post office

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

Rule 11 - Power to relax

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