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NATIONAL SAVINGS TIME DEPOSIT RULES, 1981

 GSR 664 (E): - In exercise of the powers conferred by Section-15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules, namely:-

 1.         Short title and commencement: - (1) These rules may be called the National SavingsTime Deposit Rules, 1981.

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

 2.         Definitions:- In these rules, unless the context otherwise requires:-         

(a)        ‘Account’ means a Time Deposit Account;            

Note1: - Clauses (aa), (ab) and (ac) deleted w.e.f. 1.4.1995.           

Note2: - Clause (ad) deleted w.e.f. 13.5.2005.           

(b) ‘Year’ means a year commencing on the date of deposit in an account.

(c) Words and expressions used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981 and the Post Office Savings Account Rules, 1981 have the meanings respectively assigned to them in those rules.

(c)        Deposit  means the money deposited by a depositor in an account under these rules;

(ca)      Depositor means an individual who

(i)         on his own behalf; or

(ii)        on behalf of a minor or a person of unsound mind of whom he is the guardian,

            deposits money in account under these rules.

3.         Application of the Post Office Savings Bank General Rules, 1981:- For matters not provided in these rules, the provisions of the Post Office Savings Bank General Rules, 1981 shall apply.

4.         Types of  Accounts and matters connected therewith:-

(1)             There shall be four kinds of accounts, namely 1-year account, 2- year account, 3- year account and 5- year account in which a deposit can be made for a period of one year, two years, three years and five years respectively.

(2)             The types of accounts, which may be opened, the persons by whom such accounts may be opened and other matters connected therewith shall be as specified in the Table below, namely:-

Type of account

Who may open

Number of accounts that may be opened                         

Who may operate the account

A. INDIVIDUAL ACCOUNTS

1. Single Account

 

 

(a) A person who has attained the age of majority and who is of sound mind (hereinafter referred to as an adult)

 

 

 

 

 

 

 

 

(b) A minor who has attained the age of 10 years.

 

(c) A guardian on behalf of a minor.

 

 

 

(d) (i) A guardian of a person of unsound mind.

 

 

(ii) Superintendent of Mental Hospital where a person of unsound mind is confined.

 

 

One or more accounts.

 

 

 

 

 

 

 

 

 

 

 

 

One or more accounts.

 

 

 

One or more accounts on behalf of each minor.

 

 

 

One or more accounts on behalf of each person of unsound mind

 

One or more accounts on behalf of each person of unsound mind

 

 

“(a) The adult: or

(b) An illiterate adult through a literate agent nominated by him or her: or

(c) A blind or otherwise physically handicapped adult either directly or through a literate agent nominated by him or her.”

 

The minor

 

 

 

The guardian during the minority of the minor and thereafter, the ex-minor.

 

The guardian.

 

 

 

The Superintendent of Mental Hospital

 

2. Joint Account

(a) A-type, that is to say, payable to both jointly or survivor.

 

(b) B-type, that is to say, payable to either of the depositors or survivors

Two adults

 

 

 

 

Two adults

One or more accounts

 

 

 

 

One or more accounts

 

 

Both the depositors jointly

 

 

 

Both the depositors jointly

 

In the National Savings Certificate (VIII-Issue) Rules, 1989, in rule 4, in sub-rule (3), for the existing proviso

the following proviso shall be substituted, namely:-

“Provided that if a resident Indian having purchased a certificate, subsequently becomes Non-Resident during the

currency of the maturity period, the certificate shall be encashed or deemed to be encashed be encashed on the day he

becomes a non-Resident , and ab interest shall be paid at the rate applicable to the Post Office Savings Account, from

time to time, from such day and upto the last day of the month preceding the month in which it is actually encashed”

(Vide GSR No. 1238 (E) dated 3.10.2017)

  Note 1:- Prior to 1.4.1995, the account could be opened by  a banking company (excluding cooperatives) company, a corporation, an association, institution, a body register as a society under any law for the time being in force (excluding cooperatives) , a firm registered under the Indian Partnership Act, 1932 (9 of 1932) and a local authority.

Note 2:- Non-Resident Indians are not eligible to open Time Deposit Account, provided that if a resident who opened the Time Deposit Account, subsequently becomes Non Resident Indians during the currency of the maturity period, may continue such account till its maturity on a Non Repatriation Basis.

Note 3:- The Opening of  new accounts under the headings ‘Group Accounts’, Institutional Accounts and miscellaneous Accounts have been discontinued w.e.f. 13.5.2005 vide MOF (DEA) Notification No. GSR 287 (E) dated 13.5.2005. If any such account have been opened on or after 13.5.2005, these may be closed immediately and deposits repaid without interest to the depositors. The existing accounts under these headings opened prior to 13.5.2005 shall continue till maturity and withdrawals from the accounts shall be allowed in accordance with the said rules. No extension will be allowed after maturity.

5.         Deposit and Repayment:- (1) There shall be only one deposit in an account. The deposit shall be in multiple of one hundred rupees. There is no maximum limit for the amount of deposit in an account.

(Vide GSR No. 1236 (E) dated 3.10.2017)

 (2)        The deposit shall be repayable only after the expiry of the period for which it is made, namely, one year, two years, three years or five years, as the case may be.        

(3)        The repayment of a deposit under sub-rule (2) or payment of interest on a deposit under rule-7 or rule-8 or rule-9, as the case may be, shall be made by the Post Office Savings Bank at which the account stands, on the production of the passbook accompanied by a written application.

            Provided that such repayment or payment of interest, as the case may be, shall not be made by an Extra Departmental Sub Savings Bank or Branch Savings Bank except with prior sanction of the relevant Head Savings Bank or relevant Sub Savings Bank.

(4)        The amount of repayment of a deposit and payment of interest on a deposit shall be entered in the passbook over the signature of the Postmaster.

6.         Re-deposit:- (1) Where a deposit in an account has become due for repayment, the depositor may re-deposit the amount in a new account to be opened, tendering his application for withdrawal of the original deposit in the prescribed form duly discharged.           

(2)        Subject to sub-rule (3), the date of re-deposit shall be date of withdrawal of the original subject.           

(3)(a)   Where the redeposit is made during the period specified in column (1) of the Table below and such re-deposit is for the period specified in the corresponding entry in column (2) thereof, the date of re-deposit shall be deemed to be the same as the date of maturity of the original deposit.

T A B L E

Period elapsed between the date of maturity and the date of re-deposit

Minimum period of re-deposit

                                             1.

2.

1. 6 months or less

1 Year

2. More than 6 months and upto 12 months

2 Years

3. More than 12 months and upto 18 months

3 Years

4. More than 18 months

5 Years

 (b)        In the case of re-deposit falling under item-4 of the Table if more than thirty months have elapsed after the maturity of the original deposit, the date of re-deposit shall be deemed to be the date preceding the date of withdrawal of the original deposit by thirty months.

(c)        where a deposit in an account standing at the post office working on Core Banking platform become due for repayment, the account shall be automatically renewed from the date of maturity for the same period for which it was opened initially and the deposit shall be eligible for rate of interest applicable on the date of renewal.

  7.         Interest:- (1) The deposit shall carry interest at the rate specified in the Tables below and such interest shall be payable at the end of each year in the period of deposit;

            Provided that in the case of a deposit made before 23rd July, 1974, the rates of interest notified prior to that date by the Central Government from time to time for such deposit shall be applicable for the period of deposit upto and inclusive of the 22nd July, 1974 and the rates of interest specified in Table-A below shall be applicable for any remaining period of deposit commencing from the 23rd July, 1974.

            (2)        Where the interest contains part of a  rupee and if such part is 50 paise or more, it shall be rounded off to one complete rupee and if such part is less than 50 paise, it shall be ignored.

  T A B L E-A

[For deposits made before the 1st March, 1978]

Period of deposit

                 Rate of interest per annum

1 Year

8 per cent

2 Years

8.5 per cent

3 Years

9 per cent

5 Years

10 per cent


T A B L E-B

[For deposits made on after the 1st March, 1978 but before the 1st October, 1979]

Period of deposit

                 Rate of interest per annum

           1 Year

       7 per cent

2 Years

    7.5 per cent

3 Years

       8 per cent

5 Years

     10 per cent

 T A B L E-C

 [For deposits made on after the 1st October, 1979 but before the 2nd March, 1981]

Period of deposit

Rate of interest per annum

1 Year

8 per cent

2 Years

8.5 per cent

3 Years

9 per cent

5 Years

10.5 per cent

  T A B L E-D

 [For deposits made on after the 2nd March, 1981 but before the 1st April, 1982]

Period of deposit

Rate of interest per annum

1 Year

           8.5 per cent

2 Years

9 per cent

3 Years

  10.5 per cent

5 Years

  10.5 per cent

  T A B L E-E

 [For deposits made on after the 1st April, 1982 but before the 1st March, 1983]

Period of deposit

Rate of interest per annum

1 Year

9 per cent

2 Years

9.75 per cent

3 Years

10.5 per cent

5 Years

10.5 per cent

 T A B L E-F

 [For deposits made on after 1st March, 1983 the but before the 10th May, 1985]

Period of deposit

Rate of interest per annum

1 Year

9 per cent

2 Years

9.75 per cent

3 Years

10.5 per cent

5 Years

11.5 per cent

  T A B L E-G

 [For deposits made on after the 10th May, 1985 but before the 1st April, 1987]

Period of deposit

Rate of interest per annum

1 Year

9.5 per cent

2 Years

10 per cent

3 Years

10.5 per cent

5 Years

11.5 per cent

 T A B L E-H

 [For deposits made on after the 1st April, 1987 but before the 1st April, 1991]

Period of deposit

Rate of interest per annum

1 Year

9.5 per cent

2 Years

10 per cent

3 Years

10.5 per cent

5 Years

11 per cent

  T A B L E-I

[For deposits made on after the 1st April, 1991 but before the 1st October, 1991]

Period of deposit

Rate of interest per annum

1 Year

9.5 per cent

2 Years

10 per cent

3 Years

11 per cent

5 Years

11.5 per cent

  T A B L E-J

 [For deposits made on after the 1st October, 1991 but before the 16th December, 1991]

Period of deposit

Rate of interest per annum

1 Year

10 per cent

2 Years

11 per cent

3 Years

13 per cent

5 Years

13.5 per cent

  T A B L E-K

 [For deposits made on after the 16th December, 1991 but before the 2nd September, 1993]

Period of deposit

Rate of interest per annum

1 Year

12 per cent

2 Years

12 per cent

3 Years

13 per cent

5 Years

13.5 per cent

 T A B L E-L

 [For deposits made on after the 2nd September, 1993 but before the 1st January 1999]

Period of deposit

Rate of interest per annum

1 Year

10.5 per cent

2 Years

11    per cent

3 Years

12    per cent

5 Years

12.5 per cent

  T A B L E-M

[For deposits made on after the 1st January 1999 but before the 15th January 2000]

Period of deposit

Rate of interest per annum

1 Year

9 per cent

2 Years

10 per cent

3 Years

11 per cent

5 Years

11.5 per cent

  T A B L E-N

 [For deposits made on after the 15th January 2000 but before the 1st March, 2001]

Period of deposit

Rate of interest per annum

1 Year

8  per cent

2 Years

9  per cent

3 Years

10 per cent

5 Years

10.5 per cent

  T A B L E-O

[For deposits made on after the 1st March, 2001 but before the 1st March, 2002]

Period of deposit

Rate of interest per annum

1 Year

7.5 per cent

2 Years

8 per cent

3 Years

9 per cent

5 Years

9 per cent

  T A B L E-P

 [For deposits made on after the 1st March, 2002 but before the 1st March, 2003]

Period of deposit

Rate of interest per annum

 

1 Year

7.25 per cent

2 Years

7.50 per cent

3 Years

8.25 per cent

5 Years

8.50 per cent

 T A B L E-Q

[For deposits made on after the 1st March, 2003 but before 30th November 2011]

Period of deposit

Rate of interest per annum

1 Year

6.25 per cent

2 Years

6.50 per cent

3 Years

7.25 per cent

5 Years

7.50 per cent

 

“Table-R

[For deposits made on or after 1st December, 2011]

Period of deposit

Rate of interest per annum

1 Year

7.70 per cent

2 Years

7.80 per cent

3 Years

8.00 per cent

5 Years

8.20 per cent

“Table-S”

[For deposits made on or after 1stApril, 2012 but before 1st April 2013]

Period of deposit

Rate of interest per annum

1 Year

8.20 per cent

2 Years

8.30 per cent

3 Years

8.40 per cent

5 Years

8.50 per cent

 

“Table-T”

[For deposits made on or after the 1st April, 2013]

Period of deposit

Rate of Interest

per cent. per annum

1 year

8.2

2 years

8.2

3 years

8.3

5 years

8.4

Table-U

[For deposits made on or after the 1st April, 2014]

Period of deposit

Rate of Interest

per cent. per annum

 

1 year

8.4

 

2 years

8.4

 

3 years

8.4

 

5 years

8.5

 

 

Note :- (1) For deposits made on or after the 1st October, 1979 and before 24th April, 1992 interest will be payable at the rates specified in Table C or Table D or Table E or Table F or Table G or Table H or Table I or Table J of Table K, as the case may be, calculated at half yearly compounding basis.

 

(2)        For deposits made on or after the 24th April, 1992 interest will be payable at the rates specified in Table K or Table L or Table M or Table N or Table O or Table P or Table Q or Table R or Table S, or Table T as the case may be, calculated at quarterly compounding basis.

 

8.         Premature withdrawal:-  Premature withdrawal of a deposit may be allowed subject to the following conditions, namely:-

(a)        Omitted vide GSR No. 222 (E) dated 13th March 2014 .           

(aa)      where a deposit in 1-year, 2-year, 3-year or 5-year account is withdrawn prematurely before the expiry of one year from the date of deposit, interest at the rate applicable to post office savings account from time to time shall be payable to the depositor;

(b)        where a deposit in a 2-year, 3-year and 5-year account is withdrawn prematurely after the expiry of one year from the date of deposit, interest on such deposit shall be payable to the depositor for the completed years and months falling in the period commencing on the date of deposit and ending with the date of withdrawal and such interest shall be calculated at the rate, which shall be one per cent. less than the rate specified for a deposit of 1 year 2 year or 3 years, as the case may be, in the relevant Table under rule 7.

Explanation:- Where the completed years and months in the case of a deposit in a 5-year account exceed 3 years, such interest shall be calculated at the rate which shall be one per cent less than the rate specified for a deposit of 3 years in the concerned Table under rule 7.

(c)        Any interest already paid on the deposit under rule 7 shall be recovered from the amount of repayment of deposit and the interest payable under this rule.

9.         Post-maturity interest:- Where repayment of the deposit under rule 7 has become due but has not been made, interest shall be allowed on the amount due 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.

10.       Pledging of Account:- (1) Subject to sub-rules (2) to (7) on an application being made in the prescribed form by the transferor and the transferee, officer inchargeof the Post Office Savings Bank where an account of the transferor stands may, at any time, during the currency of the account, permit transfer of the account as security to:-

  (a)             the President of India or Governor of a State in his official capacity;

(b)             the Reserve Bank of India or a scheduled bank or a co-operative society including a cooperative bank;

(c)             a corporation or a Government company; or

(d)             a local authority.

 (2)        Transfer under sub-rule (1) shall be permitted only in respect of the whole account and not for a part of it.

 (3)        Transfer of an account opened on behalf of a minor shall be permitted only if his guardian certifies that the minor is alive and the transfer is for the benefit of the minor.

 (4)        When an account is transferred under sub-rule (1), the Post Office Savings Bank shall make the following endorsement below the entry of the deposit in the passbook and also in the page of the passbook where the name and address of the depositor are written namely:-

            “Transferred as security to.....................”

 (5)        Except as otherwise provide in the relevant rule, the transferee of an account under this rule shall, until it is re-transferred under sub-rule (6), be deemed to be the holder of the account.          

(6)        An account transferred under sub-rule (1), may, on the written authority of the pledgee, be transferred with the previous sanction of the authorised Postmaster and when such re-transfer is made, the Post Office Savings Bank shall make the following endorsement in the passbook at the places indicated in sub-rule (4) namely:-

 “Re-transferred as security to.....................”

(7)        The passbook shall be presented by the depositor or the transferee, as the case may be, to the Post Office Savings Bank for purpose of making endorsement under sub-rule (4) or (6).

  Note:- A Gazetted Officer of the Government accepting an account as security under sub-rule (1) or releasing the security under sub-rule (6) on behalf of the President of India or the Governor of state shall certify that he is duly authorised under article 299 of the Constitution to execute such instruments or deeds on behalf of the President of India or the Governor of State giving the particulars of the number and the date of Notification of the Government authorising him in this behalf.

  Note:- An Officer of the Reserve Bank of India or a scheduled bank or a co-operative society including co-operative bank, a corporation or a Government company or a local authority, as the case may be, accepting an account as security under sub-rule (1) or releasing the security under  sub-rule  (6) 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.

  11.       Procedure on the death of the depositor:- (1) Subject to sub-rules (2) and (3), on the death of the depositor in a single account or of the surviving depositor in  joint account, the procedure specified in rule 13 of the Post Office Savings Bank General Rules, 1981 shall apply.         

(2)        If there are not more than two surviving nominees or legal heirs, they may, at their option, continue the account and receive any outstanding amount of deposit and interest in the manner provided for in these rules, as if they had opened the account themselves.

(3)        Where the account is not continued under sub-rule (2), it shall be closed and any deposit outstanding in the account shall be repaid with interest and such interest shall be allowed for the period for which the deposit has remained with the Post Office Savings Bank and the rate of such interest will, notwithstanding anything contained in rule 8, be-

(i)               as specified under rule 7, for the completed years not exceeding the period for which the deposit was made; and

(ii)              for any period thereafter in completed months upto a maximum of twenty-four months from the date of maturity, as specified from time to time for savings accounts of the type of single or joint account.

Note:- Any interest already paid on the account under rule 7 shall be recovered from the repayment of deposit and payment of interest under this sub-rule.

(4)        On the death of the one of the depositors in a joint account the surviving depositor shall be treated as the sole owner of the account and he may continue the account or deal with it in the manner specified under sub-rule (3).

(5)        On the death of the guardian of a minor or lunatic depositor, who opened the account, the new guardian may deal with the account in the manner specified under sub-rule (3), if the same is required in the interest of such depositor.

12.       Repeal and saving:- (1) The Post Office (Time Deposits) Rules, 1970 are hereby repealed.

  (2) Notwithstanding such repeal anything done or any action taken under the rules so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules or the Post Office Savings Bank General Rules, 1981.

 
 
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