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.