National Savings Certificates (VIIIth Issue) Scheme 2019 English.pdf

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NOTIFICATION

New Delhi, the 12th December, 2019

G.S.R. 919(E).— In exercise of the powers conferred by section 3A of the Government Savings

Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme, namely:-

1. Short title and commencement.-(1) This Scheme may be called the National Savings Certificates (VIII

Issue) Scheme, 2019.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. Definitions.- (1) In this Scheme, unless the context otherwise requires,-

(a) “account” means an account opened under this Scheme;

(b) “account holder” means an individual in whose name the account is held;

(c) “Act” means The Government Savings Promotion Act, 1873 (5 of 1873);

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(d) “Form” means forms appended to this Scheme;

(e) “General Rules” means the Government Savings Promotion General Rules, 2018;

(f) “year” means a period of twelve months commencing from the date of deposit in the account.

(2) Words and expressions used herein but not defined shall have the meanings respectively assigned to

them in the Act and in the General Rules.

3. Type of accounts.- (1) On an application to the accounts office in Form-1, the following types of accounts

can be opened under the Scheme, namely:-

(a) Single Holder Type Account;

(b) Joint A- Type Account; and

(c) Joint B - Type Account.

(2) (a) A Single Holder Type Account may be opened by an adult for himself, or on behalf of a minor or a

person of unsound mind of whom he is the guardian; or by a minor who has attained the age of ten

years;

(b) Joint A- Type Account may be opened jointly in the names of upto three adults payable to all the

holders jointly or to the survivor or survivors;

(c) Joint B-Type Account may be opened jointly in the name of upto three adults payable to any of the

account holders or to the survivor or survivors.

4. Deposits.-(1) A minimum of one thousand rupees and any sum in multiples of one hundred rupees may be

deposited in an account.

(2) There shall be no maximum limit for deposit in an account or in accounts held by an account holder.

(3) An individual may open any number of accounts.

5. Payment on Maturity.- (1) The deposit shall mature on completion of five years from the date of the

deposit. Amount of maturity may be repaid to the account holder on an application in Form-2 submitted to the

accounts office.

(2) The maturity value of an account opened with one thousand rupees shall be One thousand four hundred

sixty two rupees and fifty four paisa and proportionate for deposits made with any other sum as per sub-

paragraph (1) of paragraph 4. In calculation of maturity value, any amount in fraction of a rupee shall be

rounded off to the nearest rupee and for this purpose, any amount of fifty paisa or more shall be treated as one

rupee and any amount less than fifty paisa shall be ignored.

(3) A certificate of annual accrual of interest shall be issued by the accounts office, on demand, to the

account holder. 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 fourth

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 (rupees) accruing

on certificate of 1000 rupees

denomination

First Year 79.00

Second Year 85.24

Third Year 91.98

Fourth Year 99.24

Fifth Year 107.08

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Note: The amount of interest accruing on a certificate of any other denomination shall be proportionate to

the amount specified in the said Table.

6. Pledging of account.- (1) An Account may be pledged or transferred as security, on an application made by the

depositor in Form-3 supported with acceptance letter from the pledgee.

(2) Transfer of an account under this paragraph may be made to-

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

(b) the Reserve Bank of India or a Scheduled Bank or a Cooperative Society, including a Co-operative Bank;

(c) a public or private corporation or a Government company;

(d) a local authority; or

(e) a housing finance company approved by the National Housing Bank and notified by the Central

Government:

Provided that the transfer of an account opened on behalf of a minor or a person of unsound mind shall

not be permitted under this rule unless the guardian of the minor or the person of unsound mind, as the case may

be, certifies in writing that the minor or the person of unsound mind, as the case may be, is alive and that the

transfer is for the benefit of the minor or the person of unsound mind.

(3) When any account is transferred as security under sub-paragraph (1), the authorised officer shall make the

following endorsement in the record of the Account, including the Savings Certificate, namely:-

“Transferred as security to …..” .

(4) Except as otherwise provided in this scheme, the transferee of an account under this paragraph shall, until

it is transferred back under sub-paragraph (5), be deemed to be the depositor.

(5) An account transferred under this paragraph may, on written authority of the transferee, be re-transferred

back with the previous sanction in writing of the authorised officer and when any such retransfer is made, the

authorised officer of the accounts office shall make the following endorsement in the record of the account,

including Certificate, namely:-

“transferred back to……”.

(6) A blind or a person with physical infirmity making him incapable of operating the account may pledge his

deposit through any literate individual whom he authorises for this purpose.

7. Premature closure of account.-(1) The account shall not be closed before maturity except in the

following cases, namely:-

(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;

(b) on forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme;

(c) when ordered by a court.

(2) Where an account is prematurely closed under sub-paragraph (1) before the expiry of one year from

the date of deposit, only principal amount shall be payable.

(3) If the account is prematurely closed under sub-paragraph (1) after the expiry of one year but before the

expiry of three years from the date of deposit, the premature closure shall be allowed and on such premature

closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account

from time to time for the complete months for which the account has been held, shall be payable.

(4) If an account is prematurely closed under sub-paragraph (1) after the expiry of three years from the

date of the opening, the amount payable, inclusive of interest accrued under paragraph 5 for a deposit of one

thousand rupees and at a proportionate rate for other amounts of deposits, shall be as specified in the table

below:-

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TABLE

(Table showing premature closure value of account opened on or after date of notification with 1000

rupees)

Period from the date of the account to the date of its pre-mature

closure

Amount payable

inclusive of interest

(Rupees)

(1) (2)

Three years or more, but less than three years and six months

1221.61

Three years and six months or more, but less than four years

1263.05

Four years or more, but less than four years and six months

1305.90

Four years and six months or more, but less than five years

1350.20

8. Transfer of account from one individual to another.- An account may be transferred from one individual

to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the

following cases, namely:-

(i) on the death of account holder in case of a single account or on the death of all the account

holders in a joint account, the amount shall be transferred to the legal heirs or the nominees as

the case may be.

(ii) on the order of the court, the account shall be transferred from the account holder to the court or

to any other individual as per the orders of the court;

(iii) on pledging, account shall be transferred in accordance with paragraph 6;

(iv) in the event of the death of any of the account holders in a joint account, the account shall be

transferred in the name of the surviving account holder or account holders, as the case may be.

9. Payment on the death of account holder.-(1) In the event of death of the depositor of a single account or of

all the depositors in a joint account, the eligible balance in the account shall be payable as specified in paragraphs

(2) to (6).

(2) If a nomination is in force at the time of death of the depositor of a single account or all the depositors of

a joint account, the nominee may make an application in Form-2 to the accounts office for payment of the eligible

balance and the application shall be accompanied by the proof of death of the depositor, and where any other

nominee has also died, the proof of death of such nominee.

(3) If there are two or more surviving nominees, the eligible balance shall be paid in the proportion as

specified by the depositor while making the nomination, and if no such proportion or share is specified, then in

equal proportion to all the surviving nominees.

(4) If any nominee dies, his specified share in the eligible balance shall be distributed among the surviving

nominees in the same proportion as their specified shares.

(5) Where the surviving nominee is a minor, the payment shall be made to a person appointed by the

depositor to receive such payment and, if no such person has been appointed, to the guardian of the minor.

(6) 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 as granted in the Indian Succession Act, 1925 (39

of 1925) is not produced within six months from the death of the depositor to the authorised officer of the

accounts office where the account stands, then,-

(i) if the eligible amount in the account does not exceed Rs. 5 lakh, the authorised officer of the accounts office or

the authority specified by the institution to which the accounts office belongs, may pay the same to any person

appearing to him as the rightful claimant and to his satisfaction to be entitled to receive the amount or to

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administer the estate of the deceased, on an application in Form-2 accompanied by the following documents;

namely:-

(a) death certificate;

(b) pass book or deposit receipt/statement of account in original;

(c) Affidavit;

(d) letter of disclaimer;

(e) Bond of Indemnity;

(ii) if the eligible amount in the account of the deceased is above Rs. 5 lakh, the amount shall be paid by the

accounts office to the claimant on submission of ‘Succession Certificate’ issued by the court along with the

following documents; namely:-

(a) claim form;

(b) pass book or deposit receipt or statement of account in original;

(c) death certificate of the account holder.

(2) Where there are not more than three surviving nominees or legal heirs, they may, at their option,

continue the account and receive the amount of deposit along with interest on maturity in the manner provided

for in this Scheme, as if they had opened the account themselves.

(3) Where the account is not continued under sub-paragraph (2), it shall be closed and the amount of

deposit along with interest as provided in paragraph 7 shall be paid.

(4) On the death of one or two of the account holders in a joint account, the surviving account holder or

holders, if any, shall be treated as the owner or owners of the account and such account holder or holders may

continue the account or close the account in the manner specified under sub-paragraph (3).

10. Application of General Rules.- The provisions of the General Rules shall, so far as may be, apply in

relation to the matters for which no provision has been made in this Scheme.

11. Power to relax.-Where the Central Government is satisfied that the operation of any of the provisions of

this Scheme causes undue hardship to the account holder, it may by order, for reasons to be recorded in

writing, relax the requirements of that provision or provisions in a manner not inconsistent with the provisions

of the Act.

[F.No.2/2/2018 NS (Pt.I)]

RAJAT KUMAR MISHRA, Jt. Secy.

FORM - 1

[See sub-paragraph (1) of paragraph 3]

(Application for opening an account)

To

The Postmaster/Manager

…………………………………………………

Sir,

I/We ………………………..(account holder(s)/guardian) hereby apply for opening of an account

under National Savings Certificates (VIII issue) scheme in your Post Office/Bank.

Paste photograph of applicant/s

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I/We tender herewith Rs……………………../-

(Rs…………………………………………………………………………….) in cash/Cheque/DD.

No………………… date………. as initial deposit. My/our particulars are as under:-

1.

Name of First Depositor

……………………………………………………………

Husband/Father /mother’s name or Guardian appointed by Court

……………………………………………………………

Date of Birth ……… ..……… ………………

(DD / MM / YYYY )

(In words)………………………………………

2.

Name of Second Depositor

……………………………………………………………

Husband/Father /mother’s name

……………………………………………………………

Date of Birth ……… ..……… ………………

(DD / MM / YYYY )

(In words)………………………………………

3.

Name of Third Depositor

……………………………………………………………

Husband/Father /mother’s name

……………………………………………………………

Date of Birth ……… ..……… ………………

(DD / MM / YYYY )

(In words)………………………………………

4.

Name of minor/person of unsound mind account holder

……………………………………………………………

Father /mother/guardian’s name

……………………………………………………………

Date of Birth ……… ..……… ………………

(DD / MM / YYYY )

(In words)………………………………………

5.

Aadhaar Number of account holder(s)

…………………………………………………………..

6.

Permanent Account Number (PAN) of account holder(s)

…………………………………………………………..

7.

Present Address ………………………………………………………

………………………………………………………

Permanent Address

………………………………………………………….

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8.

Contact details Telephone Number……………………………..

Mobile Number…………………………………..

Email ID……………………………………………..

9.

Type of Account Single or Joint or through Guardian for Minor or

person of unsound mind or blind or differently

abled through authorised person.

10.

(*) Details of date of birth of minor ……………………………………………………….

(Applicable in case of minor account)

a) Certificate No.

……………………………………………………………………..

b) Date of Issue

…………………………………………………………………….

c) Issuing authority

…………………………………………………………………….

11.

(*) Name of Guardian (Natural/Legal) ………………………………………………………

(In case the account is opened on behalf of a

Minor/person of unsound mind)

12.

Details of other KYC documents attached 1. Proof of identification

………………………………………………………

2. Address proof

………………………………………………………

The following documents are accepted as valid documents for the purpose of identification and

address proof: 1. Passport 2. Driving license 3. Voter’s ID card 4. Job card issued by NREGA signed

by the State Government officer 5. Letter issued by the National Population Register containing

details of name and address;

13.

The operation of the account will be:- (a) By all the holders together or the surviving

holder/s.

(In case of joint account) (b) By either of the holder/s, or the surviving

depositor/s,

14.

My/our specimen Signatures

1………………………… 2……………………………. 3.,……………………………

(Name)…………………………………………………………

1…………………… 2……………………………..3……………………………..

(Name)…………………………………………………………

1……………………….. 2…………………………… 3……………………………..

(Name)…………………………………………………………

1……………………….. 2…………………………… 3……………………………..

(Name)…………………………………………………………

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I hereby undertake to abide by the scheme provisions and Government Savings Promotion rules-

2018 applicable on the Scheme and amendments issued thereto from time to time.

Signature or thumb impression of account holder(s)/guardian

Date:……………………

Nomination

16. I/we…………………………………………..hereby nominate the person(s) mentioned below to whom to

the exclusion of all other persons in the event of my death the amount standing to my credit in National

Savings Certificates (VIII issue) at the time of my death would be payable.

S.No.

Name(s) of the

nominee(s) and

relationship

Full address (s) Aadhaar number

of

nominee(optional)

Date of birth

of nominee

in case of

minor

Share of

entitlement

Nature of

entitlement

Trustee or

owner

1

2

3

4

As the nominee(s) at Serial No.(s)…………………………………….specified above is/are minor(s), I

appoint

Shri/Smt/Kumari………………………………………………..S/o,D/o,W/o…………………………………

………………………………………..Address…………………………………………………………………

…………………………………………………………………………………………….to receive the sum due

under the said account in the event of my death during the minority of the nominee(s).

1. Signature of witness…………………………………….

Name & Address……………………………………………..

2. Signature of witness…………………………………….

Name & Address……………………………………………..

Signature or thumb impression of account holder(s)/guardian

Place:

Date:

For use of Post Office/Bank

The account has been opened in the name of…………………………………on……………………..with

initial deposit of

Rs……………………………………….under……………………………………………..(name of the

scheme) vide Account No.__________________________ dated______________________________.

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Customer identification Number………………………………..

Nomination has been registered vide

No……………………………………..dated………………………………………..

Signature and seal of competent authority

FORM - 2

[See sub-paragraph (1) of paragraph 5]

(Application for closure of account)

Name of Post Office/Bank__________________________ Date___________________

Account Number___________________________

1. I/we hereby submit pass book/deposit receipt and apply for closure of my/our above mentioned

account matured on_________________.

2. Please Credit the amount of eligible balance in my matured account to my SB Account

no.________________________ standing at______________________(Name of Account office).

or

Please issue a Demand Draft/account payee cheque

or

Please pay in cash (applicable if the amount is below permissible limit).

*Certified, that the amount held in the account is required for the use of

………………………………………who is alive and still a Minor.

Signature or thumb impression of account holder(s)/guardian

(Thumb impression should be attested by a person known to Accounts office)

Payment Order

(For office use only)

Date ................................

Payment detail

Principal amount Rs.____________________________________________

(+) Interest due Rs. _____________________________________________

(-)

Recovery of overpaid interest Rs

._______________________________________________________

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Deduction if any Rs

_____________________________________________

Total Amount due Rs_____________________________________________

Pay Rs.____________________(in figurers)_____________________________________(in words)

Date

Signature of Postmaster/Manager

Acquittance

(to be filled by depositor)

Received Rs ._____________(In figures)______________________ (in words) By cash/cheque/DD bearing

no…………………………………….dated…………………./by transfer to Account No...............................

Date: Signature/thumb impression of account holder(s)/guardian

FORM - 3

[See sub-paragraph (1) of paragraph 6]

(Application for pledging of account)

To

The Postmaster/Manager

………………………………………

Sir,

1. I/We …………………………………………………..…. am/are required to deposit an amount of

Rs. ……………………………. as security with …………………………………… (official designation of

the gazetted officer of the Government or name of the Reserve Bank of India or a Scheduled Bank,

Cooperative Bank, Registered Cooperative Society, Corporation, A Government Company or Local

Authority). I/We therefore request you to transfer the deposit in Account Number_____________________

under National Savings Certificates (VIII issue) as security in favour of

……………………………………………………………… (Official Designation of the Officer or name of

the Branch etc to whom the Account is being pledged as security.)

2. I/We agree that the account(s) can be encashed by the pledgee when the security has been forfeited.

Nomination vide registration number.............................in the account stands cancelled.

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Particulars of Account

Account number Date Name of Account office Amount

The authority mentioned above has agreed to accept the pledge. A pledge acceptance duly signed by the

competent authority as pledgee is attached.

Dated : …………………………… Signature of account holder(s)/guardian

Address ...........……………………………

For office use only

Account number__________________ has been pledged vide registration

no....................................dated....................... and necessary entries have been marked in the record.

Passbook/deposit receipt/statement of account has also been marked with pledge and returned to the account

holder.

Signature of Post Master/Manager

Seal