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REGISTERED No. D. (D)-72 The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 161] NEW DELHI. FRIDAY, APRIL 24, 1981/VAISAKHA 4, 1903

Separate paging is given to this Part in order that it may be filed as a separate

compilation

(833)

106 GI/81—1

MINISTRY OF FINANCE

(IXpartmen' o( Economic Affairs)

NOTIFICATION New Delhi, the 24th April, 1981

G.S.R. 309(K).—In exercise of the powers confcired by section 12 of the Government Savings Certiiiducs Act, 1959 (46 of 1959), the Central Government hereby makes the fol'owinit rules, namely ;—

1. Shoit title, commencement and application.—fl) These rules may be ca'lcd the National Savings Certificates (VI Issue) Rules. 1981.

(2) They shall come into force on the 1st day of May,

1981,

(3) They shall apply to the National Savinfis Certificates

(VI Issue).

2. Definitions.—In these rules, unless the context otherwise

requires—

d) "Act" means the Government Savings Certificates

Act, 1959 (46 of 1959);

(ii) "Certificate" means the National Savings Certificate

(VI Issue);

(iii) "Co-operative Society" means a society registered or deemed to have been registered under the Co-opera- tive Societies Act, 1912 (2 of 1912) or under any other law for the time being in force ;

(iv) "Corporation" means a corporation established bv or under any law for the time beinp in force, but does not include a company ;

(v) "Form" means a form appended to these rules ;

(vi) "Government Company" means a company as de- fined in section 617 of the Companies Act, 1956 (1 of 1956);

(vii) "Identity Slip" means an identity slip issued to a

holder of a certificate under rule 12 ;

(viii) "Local Authority" means a municipal corporation, municipal committee, district board, body of port commissioners or other authority legally entitled to or entrusted by the Government with the control or management of a municipal or local fund ;

(ix) "Old Certificate" means a certificate issued under the Post Office Savings Certificates Rules, 1960, or the National Savings Certificates (First Tssue) Rules, 1965, or the National Savings Certificates (TV Issue) Rules, 1970 or the National Savings Certificates fV Tssue) Rules, 1973. or a Bond issued under the National Development Bonds Rules, 1977;

(x) "Post Office" meam, any post office in Tndia doing

Savings Bank work,

3. Denominations in which certificates shall be issued.— The National Savings Certificates (VI Tssue) shall be issued in denominations of Rs, 10, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000 and Rs. 5,000.

4. Types of Certificate" and Issue thereof.—(1) The Certi-

ficates shall be of the following types, namely ;—•

fa) Single Holder Type Certificates :

(b) Joint 'A' Type Certificates ; and

(c) Joint 'B' Type Certificates.

106 GI/81—2

(2) (a) Single Holder Type Ceitifidites may be issued to an adult for himself or on behalf of a minor or to a minor.

(b) Joint 'A' Type Certificates, may be issued to two adults

payable to bolh holders jointly 01 to the smvivoi.

(c) Joint 'B' Type Certificates may be issued jointly to two adults payable to cithci of the holders or the survivor.

5. Purchase of Certificates.-—Ccitificatcs may be purchased

for any amount.

6. Procedure for purchase of certificates.—Any person desiring to purchase a certificate' shall present at a post office on or after the 1st day of May, 1981 an application in Form I (obtainable free of cost at all cost offices) either in person or through his messenger or through an authorised agent of the Small Savings Schemes.

7. Purchase of Certificates on behalf of others —A person or body specified in column I of the Table below may pur- chase certificate^) on behalf of persons specified against his or its n-ame in the corresponding entry in column TI of the said Table :

Provided that the persons specified in the said column II

are eligible under these rules to purchase certificates.

TABLE

I

II

on behalf of

Person or body who can purchase

(i) an adult (ii) a Co-operative society in- cluding a co-operative bank, or a scheduled bank.

a minor its members, clients, em- ployees or contractors whose moneys arc held as deposit or otherwise with such so-

ciety or bank.

(iii) A Gazetted Government persons whose monys

arc held as deposit or otherwise with such officer or the Reserve Bank.

officer, an officer of a Govern- ment company or of a cor- poration or of a local aut- hority, or an officer of a corporate body like a mark eting committee establi- shed under a State Act and authorised by the State Go- vernment in this bohalf, in his Official capacity or the Reserve Bank of India.

8. Legal Tender.—Payment for the purchase of a cciti- ficate may be made to a post office in any of the following modes, namely:—

(i) cash;

(ii) a cheque, pay order or demand draft;

(iii) duly signed withdrawal form together with the pa,=s book for withdrawal from tho post office wings bank account;

(iv) Surrender of a matured old certificate duly discharged as follows— "Received payment through issue of fresh certificate vide application attached".

9. Tssue of certificates—(1) On payment being made under rule H, except where payment is made by a cheque, pay order or demand draft, a certificate shall noimally be issued imme- diately, and the dale of such certificate shall he the date of payment.

(2) Where payment for the purchase of a certificate is made by a cheque, pav order or demand draft, the ceitifkate 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 oi demand diaft, as the case may be.

(3) If foi any leason a certificate cannot be issued imme- diately, a provisional receipt shall be given to the purchaser which may latci bo c h a n g ed for a certificate and the date of auch certificate shall be as specified in sub-rule (1) or sub- rule (2), as the case may be.

10. Certificate in lieu of proceeds of old certificate.—A holder of an old certificate entitled to encash that certificate may make an application in Form 1 for the grant of a certi- ficate under these rules; on receipt of such an application, there shall be issued to the applicant a cei tificate under these rules, the date of I'isuc bcinc the date on which the old certi- ficate duly discharged is piescnted.

11. Irregular holding.—(1) Any ceitificate puichafed or acquired in contravention of these rules shall be encashed by the holder as soon as the fact of the holding being in contravention of Ihese rules is discovered and no imeicst shall be paid on any holding in contravention of thc^e rules.

(2) If any intcicst has been paid on any holding which is in contravention of these rules, it shall be forthwith lefund- ed to the Government failing which the Government frhall be entitled to recover the amount involved from any money payable by the Government to the investor or as an aitcar of land revenue.

12. Identity Slip.—(1) If a request for the issue of an identi- ty slip is made ijt any time by an individual adult holder of a certificate incuding a holder on behalf of a minor or by joint holders to the post office where the certificate stands registered, an identity slin shall be issued to such holder or holders on his or their sinninj; the identity slip.

(2) The identity slip shall be surrendered at the time of the final discharge of the certificate or in case of its loss, a declaration of such loss shall be furnished to the post office in the form laid down by the Director General, Posts and Telegraphs.

13. Transfer from one post office to anoiher.—(1) A certi- ficate may be. transferred from, a post office at which it stands registered, to any other post, office on the holder or holders making an application in the form laid down by the Director General, Posts and Telegraphs, at either of the two post offices.

(2) Every such application shall be sigrod by the holder

or holders of the certificate :

Provided that in the case of a Joint "A' Type Certificatei or a Joint 'E' Type Certificate, the application may be signed by one of the joint holders if the other is dead.

14. Transfer of certificate from one peison to another.— A certificate mav be transferred with the previous consent in writinc of an officer of the post office as specified below (hereinafter referred to in these rules is authorised Post- master) .

Cases in which transfer can be sanctioned. Designation of the officer com- petent to grant permission for transfer.

to his heir.

(a) (i) From the name of a deceased holder") | (iii) From a holder to a court of law, | or to any other person under the | orders of a court of law. | (iii) From a single holder to the names y

Head Post-m aster or sub-Post- master of the post office where the certificate stands regis- tered.

of two joint holders of whom the transferer shall be one. (iv) From joint holders to the name of one of the joint holders.

(b) Allothercases

"] Head postmaster

(2) An authorised Postmaster shall give his consent to the transfer of a certificate only if the following conditions are satisficdv-tnamely :—

(a) the transferee is eligible under these rules purchase

certificates ;

(b) the transfer is made after the expiry of a period of at least one year from the date of the certificale or where the transfer is sought before the expiry of such period, the transfer falls under any of the follo- wing categories, namely :—

(i) transfer to a near relative out of natural love and

affection;

Explanation.—For the purposes of this nile, "near relative" means husband, wife, lincil a->- cendant or desccdant, brother or sistei.

(ii) transfer in the name of the heir of the d.'cc iscj

holder;

(iii) transfer from a holder to court of law or to any

other person under the orders of a iouit ol hiw;

(iv) transfer in accordance with rule 16; and

(v) Iransfer in the name of the survivor in the event

of the death of one of the joint holders.

(.c) An application for the transfer is made in the form laid down by the Director General, Post and Te'c- grupris and is signed by the holder or holdeis of the certificate:

Provided that in the case of a Joint 'A' Type Ccitificate or a Joint 'B' Type Certificate, the application may "be signed by one of the holders if the other is dead.

(3) Without prejudice to the provisions of sub-rule (2), un authorised Postmaster ahall give his consent to the transfei of a certificate held on behalf of a minor only if at the tune of the pioposed transfer, a parent or the guardian referred to in sub-clause (i) or, as the case may be. sub-clause (iil, of clause (b) of section 5 of the Act, certifies in writing, that the minor is alive and that such transfer is in his interest.

(4) In every case of transfer, other than a transfer under rule 16, the original certificate shall be duly dischaiged and the new certificate bearing the same date as that of the oiij{i- nal certificate surrendered shall be issued in the name of the transferee.

15. Transfer from sinsle holding Lo joint holding ,ind \icc- vers.-—Subject to the provisions contained iu sub-iule (1) of rule 14, on an application to this effect being made—

(a) a certificate in the name of a single holder may be transferred jointly in the names of the holder and any other person;

(b) a certificate in the names of ioint holders may be transferred to the name of one of he joint holders.

16. Pledging of certificate.—(1) On an application being made in the form laid down by the Director General, Posts and Telegraphs, by the transfercr and the transferee, the Post- master of the office of registration may, at any time, permit the transfer of any certificate as security t o-

la) the President of India or Governor of a State in his

official capacity;

(b) the Rcseive flank of fndia or a scheduled bank, or. a co-operative society including a co-opeiative bank;

(c) a corporation or a Government company; and

(d) a local authority:

Provided that the transfer of a certificate purchased on be- half of a minor shall not be permitted under this sub-iule unless the r>aren or the guardian of the minor referred to in nub-clause fi) or, as the case nay be sub-clause (ii>, of clause (b) of section 5 of the Act certifies, in writing, that the minor is alive and ihe transfer is For the benefit of the minor.

(2) When any certificate is transferred as security under sub-rule (1), the Postmaster of the office of registration shnll make the following endorsement on the certificate, namely;—

"Tiansfetred as sccunty to

".

(3) Except as otherwise provided in these rules, the transferee of a certificate under this rule shall, until it is r c-tr ansferrcd under sub-rule (4), be deemed to be the holder of the certi- ficate.

(4) A (.crtifkale transferred under sub-rule (2) may, on the written authority of the pledjjee, be re-transfericd with the previous sanction in writing of the authorised Postmaster and when any such ic-tiansfer is made, the Postmaster of the office of registration shall muke the following endorsement on the certificate, namely— "Re-transferred to

".

Note 1.—A Gazetted officer of the Government accepting the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behnlf of the President or the Governor of a Stntc, shall ccitify thai he is duly authorised under his dated signature and seal of office that as a duly or deeds on behalf of the President of India or the Governor of the State, giving the particulars of the number and date of the notification of the Government authorising him in this behalf.

Note 2.— An officer of the Reserve Bank of India or a scheduled bank or a co-operative society indudin" a co-opera- tive bank, a. corporation or a Government company or a local authority, as the case may be, accepting the certificate ay security under sub-rule (.1) or releasing the pledge- under sub-rule (.4) on behalf of the respective institution, shall certify under his dated signature and seal of office that he is duly authoriyed under the ai tides of the said instituion, to execute such instruments or deeds on its behalf.

(5J Where as a result of several endorsements made undor sub-iules (2) and (4) on a certificate, no space is left for making further endorsements of a like character on that certi- ficate, a fresh certificate may be lusued by the Postmaster of the office of registration in lieu of such certificate.

(f>) A fresh certificate issued under sub-iule (5) shall be

treated as equivalent to the certificate in lieu of which it has been issued for all the purposes of these rules.

17. Replacement of lost or destroyed certificate.—(I) If a ccitificate is lost, stolen, dcstioyed, multilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office, where the certificate is refiistered oi to any other post office in which case the application will be forwarded to the post office of registration.

(2) Every such application shall be accompanied by—

(a) a statement showing particulars, suth as, number, amount and date of the certificate and the circum- stances attending such loss, theft, destruction, mutila- tion or defacement;

(b) an identity slip, if any.

(3) If the officer in charge of the post office of registration h satisfied of the loss theft, destruction, mutilation or deface- ment of the certificate, he shall issue a duplicate certificate on the applicant's furnishing an indemnity bond in the form laid down by the Director General, Posts and Telegraphs with one of more approved sureties or with a bank's guarantee ;

Provided that where the face value or the aggiegatc face value of the certificate of certificate^, lost, stolen, destroyed, mutilated or defaced is Rs. 500 or less, a duplicate certi- ficate or certificates may be issued on the applicant furnishing an indemnity bond without any such surety or jjuar.intce:

Provided further that where such application is made with respect to a certificate mutilated or deforced, of whatever face value, a duplicate certificntc may be issued without -my such indemnity hond, surety or guarantee, if (he certificate muti- lated or defaced and the identity slip, if any, aie suirendered and the certificate is capable of being identified as the one originally issued.

(4) A duplicate certificate issued under sub-rale (3) shall be treated as equivalent to the original certificate for all the purpose? of these rules except that it shall not be cncashable at a post office other than Uic post office at which such certi- ficate is rcgistcicd without previous verification.

18. Nomination.-—(1) Subject to Ihc provisions of sub-iulcs (2) to (6). the single holder or joint holders of a certificate may, by filling in necessary particulars in Form. 1 at the time of purchasing the certificate, nominee any person who, in the event of death of the single holders or both ihc joint holders, as the case may be, shall become entitled to the certificate and to the payment of the amount due thereon. If such nomination is not made at the time of purchasing the certificate, it may he made by the single holder, the joint holders or (he surviving joint holder, as the case may be, at any time after Ihc purchase of the certificate but before ita matuiity, by means of an application in Form 2 to the Postmaster of the office at which the certificate stands registered.

(2) There shall not be mote than one nominee, except in cases where the denomination of a cer. ideate is Rs. 500 or more,

(3) No nomination shall be made in respect of a ceuificiite

applied for and held by or on behalf of a minor.

(4) A nomination made by the holder or hokleis. of a certi- ficate under this rule may be cancelled or varied by submittine an application in Form 3 affixing posiaiic stamps of the vnlue specified in sub-rule (2) of rule 29 together with the ceitificate to the Pohtm.'isler of the post ofikc at which the certificate stands registered.

(5) Separate applications for nomination or cancellation of a nomination or variation of a nomination shall be made in respect of certificates registered on different dates.

(6) The nomination or the cancellation of a nomination or the variation of a nomination shall be effective from the date it is registered in (he post office, which date sh.il! be noted on the certificate.

19. Encashment on maturity. — The maturity pciiod of a certificate of any denomination shall be six years commencing from the date of the certificate. The amount, in- clusive of Interest, payable on encashment of a ceifificate at any time after the expiry of its maturity period shall be Rs. 2DA5 for the denomination of Rs. 10 and at proportionate rate for any other denomination. The interest ss specified in the Table below shall accrue to the holder or holders of ilie certificate at the end of each year and the interest so accru- ing at tho e nd of each year upto the end of the fifth year shall be deemed to have been re invested 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 (Rs.) ac- cruing on certificates of Rs. 10 denomination.

First year

1.24

Second year

1.39

Third year

1.56

Fourth year

1.75

Fifth year

1.97

Sixth year

2.24

NOTE : The amount of interest accruing on a certificate o

any other denomination shall be proportionate to the amount specified in the Table above.

20, Premature encashment—(1) Notwithstanding ; nythipy anything contained in rule 19, .i ccrtiiic ite of any denomina- tion may, at the option of the holder or holdci.s, be encashed at a discount at any time after the evpiry of thiee yciirs from the date of the certificate, On such premature encashment, the the amount payable inclusive of interest accrued under rule 19 and after adjustment of discount, shall be as specified in the Table below for a certificate of Rs. 10 denomination and at proportionate rate for a certificate of any other denomination

TABLE

eriod from the date of the certificate to

p

the date of its encashment

Amount pay- able, inclusivi of interest

(Rs.)

(2) (0

(Rs.)

years or more, but less than 3 years and

3

13,20 6 months . . . ..

years and 6 months, or more, but less than

3

13,85 4 years .

. ..

A

14.50 yeais or more, but less than 4 years and 6 months . . . . ..

\ years and 6 months, or more, but less than

A

J5.20 5 years

i J years or more, but less than 5 years and

15,90 6 months

> years and 6 months, or more, but less than

16.65 6 years

(2) Notwithstanding anything contained in sub-rule (1) and rule 19, and subject to sub-rules (3) and (4), a certificate may be prematurely encashed before the expiry of three years fiom the date ot the ccitiflca'e in any of the following circumstances, namely :—

(a) on the death of the holder or both the holders in caso

of joint holders ;

(b) on forfeiture by a pledgee beinjj a Gazetted Govern- ment officer, when the pledge is in conformity with these rules;

(c) when ordered by a court of law.

(3) If a certificate is encashed under sub-rule (2) within a period of one year from the date of the certificate, only the iare value of the certificate shall be payable and no interest shnil be payable.

(4) If a certificate ia encashed under sub-rule (2) after the expiry of one year but before the expiry of three years from the elate of tho certificate, the encashment shall be at a dis- count, On encashment of the ".ertiflcate. an amount equivalent to (he face value of the certificate together uilfi simple interest shall be payable. Such simple interest shall be calculated on the face value, at the rate applicable from time to time to nnulc accounts under the Post Office Savings Bank Rules, 1965, for the complete months for which the certificate has been held. The difference between the aforesaid simple interest nnd tte inteiest accruing under rule 19 shall be deemtd to b<"

he discount

21. Place of encashment—A Certificate shall be eucashable

nl ihe post office at which it stands registered :

Provided that a certificate mav be encashed at any other post office if the officer-in-chargi; nf that post office is ^aihfied on nroduclion of identitv slip or on verification from the office of its registration that the person prrsentinn the certificate for encashment is entitled thereto.

22. Discharge of certificate—(1) The person entitled to receive the amount due under a certificate shall, on ils cn- caifchiTitpt, sign on the back thereof in token of having received the payment,

(2j In the case of a certificate purchased on behalf of a minor who has since attained majority, the certificate shall be signed by such a person himself, but his signature shall be attested cither by the person who purchased it on bh behalf or by any other person who h known lo the Postmaster

(3) A certificate of discharge may be issued by the nost office to any person encashing a certificate on payment of the fee specified in sub-rule (1) of rule 29.

23. Encashment of minor's certificate—A person encashing u certificate on behalf of n minor shall furnish a letter from the parent or the guardian of ihe minor referred to in sub- clause (i), or as the case may be, sub-clause (ii), of clause fb) of section 5 of the Act, to the. effect that the minor is alive and that the money is lequired on behalf of the minor.

(2) When the nominee is a minor, the person appointed under sub-section (3) of section 6 of the Act while encashing the certificate, shall furnish a certificate that the minor is alive and that the money is required on behalf of thu minor.

24. Payment to heirs—(1) Fot the purposes of sub-s^t-ticn (4) of section 7 of the Act the authorities named below shall be competent to sanction claims upto the limit noted against each on the death of the holder of the certificate, without production of the probntc of his will or letters of administration of his estate or succession ccitificate granted under the Indian Succession Act, 1925 (39 of 1925) : —

TABLE

Name of authority

] Limit Explanation : The afoiesaid requisition must be made under section 3 or section 4 of the Army and Air Foicj (Disposal of Private Propeity) Act. 1950 (40 of 1950), in the case of a person belonging to the Army or the Air Force, or under section 171 or section 172 of the Navy Act, 1937 (62 oi 19573 in the case of a person belonging V) (he Navy.

26. Rights of nominees—<1) In the event of the death of the holder of a certificate, in respect cf which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the certificate to :—

(a) encash the certificate; or

(b) sub-divide the certificate in appropriate denomination* in favour of individual nominees or two adult nominees jointly.

(2) For the purpose of sub-iule (1), the surviving nominee or nominees shall make an application to the Postmaster of the office of registration, supported by pi oof of death of the holder and of deceased nominee or nominees, if i\ny.

(3) If thcic arc more nominees than one, all the nominees shall give a joint discharge of the certificate at the time of receiving payment or sub-division.

Note—When there is a nomination in favour of a single nominee or two adult nominees the post office of registration may, on an application made in that behalf, issue a fresh certificate in the name of such nominee or nominees jointly as the case may be,

27. Conveision from one denomination to anothc/—(1) Certificates of lower denomination n ay be exchanged for a certificate or certificates of higher denomination of the same aggregate face value or a certificate of richer denomination may be exchanged for certificates of towei denomination of the same aggregate face value :

Provided that certificates bearing different dates shall not be combined for being exchanged for ceitificate or certifi- cates of higher denomination.

~~(2) ~~

(1)

(i) Time Scale Departmental Sub-post-

master . . . . ..

Rs. 100

(ii) Sub Postmaster in Lower Selection Grade Rs. 250

(iii) (a) Non-Gazetted Head Postmaster and "1 Sub- Postmaster in Higher Selection | 1 Grade

Rs. 500

(b) Deputy Postmaster in Higher Selec- I

tion Grade and Assistant Presidency Postmaster in Higher Selection J Grade.

(iv) Deputy Postmaster in Group 'B' and

Deputy Presidency Postmaster

Rs. 2,000

(v) (a) Group 'A' or Group 'B' Pcstmaster/ ~)

Presidency Postmaster and Superin- tendent of Post Offices/Senior Super- intendent of Post Offices. . y. Rs. 5000

(b) Heads of Postal Circles Assistant | Director/ Assistant Postmaster | J General)

25. Encashment of Certificate held by Army, Air Fon.e and Navy Personnel.—Where a certificate ii held by a per- son who is subject to the Army Act, 1950 (46 of 1950) or the Air Force Act, 1950 (45 of 1950) or the Navy Act, 1957 (62 of 1957), and such person dies or deserts, the Command- Ing Officer of the Corps, department, detachment unit or ship to which the deceased or deserter belonged or the Committee of Adjustment, as the case may be, may send a requisition to the officer in charge of the post office where the certified stands registered to pay to him or it, the amount due under the certificate; and the officer in charge of the po5t office shall be bound to comply with such lequisition even though there U in force at the time of death or desertion of holder of the certificate a nomination made in favour of any person.

(2) The date of the certificate or certificates issued in exchange shall be the same as that of the original certificate ot certificates- surrendered and not the dale on which the exchange is mode.

28 Income-tax—Interest on these certificates shall be liable to tax under the Income-tax Act, 1961 (43 of 1961), on the basis of the annual accrual specified in rule 19, but no tax shall be deducted at the time of payment of dis- chai ge value.

29. Fees.—(1) A fee of rupee one in the case of a certi- ficate of the denomination of Rs. 500 or above and a fee of twenty-five paise in any other case shnll be chargeable in respect of the following transactions, namely :—

(i) tiansfcr of certificate from one person to another, other than a transfer from the holder to a court of law or under the orders of a couit of law;

(ii) issue of a duplicate certificate under rule 17;

(iii) issue Of a certificate of discharge under rule 22;

(iv) conversion from one denomination to another under

rule 27.

Explanation-—<1) The fee to be charged for the is.sue of a certificate of discharge under clause (iii) shall be calculated separately on the aggregate face value of all certificates which were purchased '">n any one application and which arc included for discharge certificate.

Explanation—(2) The fee io be churned for a conveisinn under clause (iv) shall be based on the number nnd denomination of the certificates required to be fciued on sucTTconversion.

(2) A fee of fifty paise shall be chargeable on every arpli- cntion for registration of nomination, or of any variation in nomination or cancellation theieof ;

Provided that no fee shall be charged on an application foi

registration of the first nomination.

30. Responsibility of the Post Office—The post office shall not be responsible for any loss caused to a holder bv jr.y person obtaining possession of a certificate and fraudulently, encashing it.

31. Rectification of mistake*—The Director General, Posts and Telegraphs or the Postmasters General or Heads of Postal Divisions in their respective jurisdictions, may either suo motu or upon an application by any person interested in any certi- ficate issued in pursuance of these rules, rectify nny clerical Or arithmetical mistakes with resnect to that certificate, provided that it does not involve any financial loss to the Government or to any such person.

32. Power to relax—Wheic the Central Government is satisfied that the operation of nny of the provisions of thete rules causet yjjdue hardship to the holder or holders of a certificate, it may, by order, for reasons to h: recorded in wrftimr. relax the requirements of thnt rjrovision in a mnnner not inconsistent with the provisions of the Act.

FORM 1

\See Rule fi, 10, and 18(1)]

INDIAN POSTS AND TELEGRAPHS DEPARTMENT

Form of Application for the purchase of National Savings

Certificates (VI Issue)

Serial No

(1) I/We hereby apply for the purchase of National Savings Certificates (VI Issue) detailed in the statement below and tender the amount shown in column 1 of the statement.

Form of tender Amount Deno- No. of *Type Total mina- certifi- of Face tion cates Joint value of certi- requi- certifi- ficates red catcs applied requi- for red

CA' or 'B' type)

Rs. Rs. Rs.

"1 ~~2~ 3 4~ 5

(i) Cash

(ii) Cheque, de-

mand draft 10

or an appro- ved local Bank's Pay 50 order or pay 100 slip No. Dt. 500

on Bank.

(iii) application for

withdrawal from Post Office Savings Bank 1000

(iv) Matured certi- ficates for re- investment 5000

TOTAL FACE VALUE

*To be filled in only in case of joint holding.

(a) **In my/our namc(s)

(in Block Capitals)

with aliases, if any,

** For single or joint holder.

(b) .. On behalf of minor

(Block Capitals)

.. For purchase on behalf of minor

Date of birth of minor

£To be made encashablc by the minor's

(i) Father, (ii) Mother, (iii) Either Parent, (iv) LijU

Guardian.

t(Cross out the alternative not ro^uired or all the items,

if it is not desired to make an authorisation).

[Cross out (a) or (b) whichever is not required)].

"j (c) In the name of

through

(members etc.) (society or company, etc.)

("(For a co-operative society, co-operative bank or a scheduled bank, on behalf of its members, clients, employees or contractors, whose monies are held as desposit or otherwise with &uch society or bank; for a gazetted Government Officer, an officer of a Government company or of a corporation or of a local authority, or an officer of a corporate body like a mark- ing commitee established under a State Act and authorised by the State Government in this behalf, in his official capacity, or the Reserve Bank of India.

(2) I/We hereby agree to abido by the National Savings

Certificates VI Issue) Rules. 1981.

(3)***T/We do/do not require identity slip. (In case of an investment through an authorised agent or a messongor, specimen signature's) and marks of identification should be given below paragraph (5)

***Cross out whichever is not applicable.

Note—No Identity slip shall be Issued to a person other than the one authorised vide paragraph l(b) above in case of purchase on behalf of a minor.

Signature Signature

(not thumb impression of the (or thumb impression if illi- person(s) authorised if any, terated) of investor per paragraph l(b) above.

Date Date

Address Address

Note- In case of an illiterate applicant the father's name may

be given.

(4) The certificate(s) and the identity slip may be made

over to my/our agent Shri/Snit Authority No or messonger who presents this application.

(cross c i.t words not "ppl'cable.)

•To be signod or thumb impres- 'Signature for thumb impres- sion affixed only whei the sion if illiterate) of investor, investor d v:, n }t take delivery of certificates personally.

Date

(5) Received the certificates detailed above£ and identity

slip.

£ Cross out, if the identity slip is not to bo issued.

Signature or thumb impression of purchaser or his agent/ messenger. (In case of authorised agent his Authority No. should be given).

Marks of identification.

Specimen Signature.

(6) Under provisions of section 6(1) of the Govern- ment Savings Certificates Act, 1959, I/We the holderis) of Savings Certificated) mentioned in this application hereby nominate the person^) mentioned below who shall, on my/our death, become entitled to the Savings Certificate^) and the amount due thereon to the exclusion of all other perton(s) :—

Serial No.

Name of the Nominee(s)

Full Address Date of birth of nominee in case of minor.

(1) (2) (3)

As the nominee(s) at serial

above

is/are minoKs), I/We appoint Shri/Smt./Kumari

(name and full address) as the .person to recover the amount due thereon in the event of my/our death during the minority of the nominees).

witness

Signature and full address of Signature (or thumb impres- sion if illiterate) of holdeHsl

To be completed by the Post Offlco

Remarks like

Initials of t Post Mastei

Sl. No. <

Issue price af Rs.

Date of encashmeni

: transfer. Issue

certi-

of duplicates

etc. Sc. initials of ficates

Post Master.

issued

5 2

4

1

3

Total number of National Savings Certificates (VI Issue)

Siguatue of Postmaster

Date 19-.

FROM 2

[See Rule 18(1)]

INDIAN POSTS AND TELEGRAPHS DEPARTMENT

Serial No

FORM OF APPLICATION FOR NOMINATION UNDER SECTION 6 OF TH1I GOVERNMENT

SAVINGS CERTIFICATES ACT, 1959

(This form will bo filled inby the h^lder/s and submitted with the certificates to the Postmaster of the offlco where the certificates stand registered)

To

The Postmaster,

Under provisions of section 6 (1) of the Government Savings

tho Certificates Act, 1939,1/We holders of Savings Certificates detailed on the reverse, hereby nominate the persons mentioned below, who shall , on my/our death, become entitled to the Savings Certifbate/s anil to be paid the sum due thereon to tho exclusion of all other persons. I/We hereby declare that I/We have not so far nude any nomi na- tion in respect of these certificates. Thj> eertifl.jats] aw en- closed.

Sl. Name of tho nominee Full address Dato of birth of nominee in No. case of minor.

(1) (2) (3)

As the nominee/s at serial abova is/are minor/s

I/We appoint Shri /Smt./Kumari (name and full addresj) as the person to recover the sum the due thereon in the event of my/our death during tho minority of the nominee/s.

S.Nos. Denomination Date of Issue Offlse of issue

of

Certificates

(1)

(2)

(3)

Address :—

(In case of illiterate holder father's

name should be given)

Yours faithfully

Signature (or thumb impres-

sion, if illiterate) of

holder/ii.

Witnesses —

Name

Address (I)

Name

A-Jdress (2)

N.B.— In the case of illiterate holders, tho witnesses shall bo persons whose signatures are known to tho post office.

Order of the Postmnter accepting the nomination.

Date stamp

of Signature of Head/Sub-poslmaster

FORM 3

[Soo Rulo 18(4)]

TNDTAN POSTS AND TELEGAPHS DEPARTMENT

Serial No

FORM OF APPLICATION FOR CANCELLATION OR VARIATION OF NOMINATION PREVIOUSLY MADE IN RESPECT OF SAVINGS CERTIFICATES UNDER SECTION 6 OF THE GOVERNMENT SAVINGS CERTIFICATES ACT, 1959. (This form will be filled in by the holder/s and submitted with the certificate to the Postmaster of the office where the certificate stands registered).

To

The Postmaster,

Space for

Postage Stamps

Under provisions of section 6(1) of the Government Savings Certificates Act, 1959, I/wc, the holder/s of Savings Certificates detailed on the reverse, hereby cancel tho nomination previously mado by me/us in respect of these cer- tificates and registered in your office under No dated....

•In place of the cancelled nomination, I/we hereby nominate the person/s mentioned below, who shall, on my/our death, become entitled to the Savings Certiflcate/s and to be paid tho sum due thereon to the exclusion of all other persons

SI. No. Namo of he nominee Full Address Date of birth of nominee incase of minor

•To be filled up in case of variation only.

As the nominee/s at serial above is/aro minor/s, I/we appoint Shri/Smt./Kumari (name and full address) as the person to recover the sum due thereon in the event of my/our death during tho minority of the nomineo/s. The Certificates are enclosed.

SI Nos. of Cer- Denomi- Date of issuo Office of issue tificates nation

Address :— Yiu.-j futhfully,

(In case of illiterate holder, father's name should be givon)

Signature (>r thun'] i m i s s i on if illiterate ) of hiil^r/s.

Witnesses :

Namo Address (1)

Name

Address (2)

N.B.—In the case of illiterate holders, the witnjises shall be persons whose signatures are known to tho, Post Office. Date stamp

of Order of tha Postmaster accepting nomi-

nation.

Post Office

Signature of He id/Sub-Postmastcr

[F. No. 3/5/8 l-NS(i)] A.C. T1WARI, Jt. Secy.

1O6QI/81—3

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 24th April, 1981

G.S.R. 310(E).—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 :—

1. Short title commencement and application—CD These rules may be called the National SaviBRs Certificates (VII Issue) Rules. 1981.

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

1981.

(3) They shall apply to the National Savings Certificates

(VII Issue).

2. Definitions.—In these rules, unless the context other-

wise requires—

(i) "Act" means the Government Savings Certificates Act.

1959 (46 of 1959):

(ii) "Certificate" means the National Saving Certificate

(VTI Issue);

(iii) "Co-operative Society" means a society resistered or deemed to have been registered under the Co-operative Socie- ties Act, 1912 (2 of 1912) or under any other law for the time beina in force;

(iv) "Corporation" means a corporation established by or under any law for the time being in force, but does not include a company;

(v) "Form" means a form appended to these rule^;

(vi) "Government Company" means a company as defined

in section 617 of the Companies Act, 1956 (1 of 1956) ;

(vii) "Identity Slip" means an identity slip issued to a

holder of a certificate under rule 12;

(viil) "Local Authority" means a municipal corporation, municipal committee, district board, body of port commis- sioners or other authority legally entitled to or enrusted by the Government with the control or management of a muni- cipal or local fund;

(ix) "Old Certificate" means a certificate issued undtr the Post Office Savings Certificates Rules, 1960, or the National Savings Certificates (First Issue) Rules, 1965, or the National Savings Certificates (IV Tssue) Rules, 1970, or the National Savings Certificates (V Issue) Rules, 1973. or a Bond i

(x) "Post Office" means any post office in India doing

Savings Bank work.

3 Denominations: in which cer'ificates shall be issued—The National Savings Certificates (VII Iwme) shall be issued in denominations of Rs. 100. Rs. 500, Rs. 1000 and Rs. 5000

4 Types of Certificates and Issue thereof.—(1) The Certi-

ficates shall be of tbe following types, namely •

fa) Single Holder Type Certificates;

(b) loint 'A' Type Certificates; and

(c) Joint *B' Tvpe Certificates.

(2) (a) Single Holder Type Certificates may be issued to an adult for himself or on behalf of a minor or to a minor.

(b) Joint 'A' Type Certificates may bo issued to two adults

payable to both holders jointly or to the survivor.

(c) Joint 'B' Typo Certificates may be issued jointly to two

adults payable to either of the holders Or the survivor.

5. Purchase of Certificates.—Certificates may be purchased

for any amount.

6. Procedure for purchase of certificates.—Any p;- jn de- siring to purchase a certificate shall present at a post office on or after the 1st day of May, 1981 an application In Form 1 (obtainable free of cost at all post offices) either in person or through his messenger or through an authorised agent of the Small Savings Schemes.

7. Purchase of Certificates on behalf of others.—A person or body specified in column I of the Table below may pur- chase certificate (s) on behalf of persons specified against his or its name in the corresponding entry in column II of the "aid Table.

Provided that the persons specified in the said column IT

are eligible under these rules to purchase certificates.

TABLE

T

II

Person or bod y who can

on behalf of

purchase

(1) an adult

a minor

(ii) a. co-operative society including a co-operative bank, or a scheduled bank.

its members, clients, emplo- yees or contractors whose moneys are held as deposit or otherwise with such society or bank.

Persons whose moneys are held as deposit or other- wise with such officer or

the Reserve Bank.

(iii) a Gazetted Government Officer, an officer of a Government company or of a corporation or of a local authority, or an officer of a corporate body liko a marketing committee established under a State Act and authorised by the State Government in this be- half, in his official capa- city, or the Reserve Bank of India.

8. l^gal Tender.—Payment for the purchase of a certifi- cate may be made to a post office in any of the following modes, namely ?—

(i) cash;

fii) a cheque, pay order or demand draft; (iii) duly signed withdrawal form together with the pass book for withdrawal from the post office savings bunk account;

(iv) Surrender of a matured old certificate duly dis- charged as follows "Received payment through issue of fresh certificate vide application attached".

9. Issue of certificates.—(1) On payment behut made under rule H except where payment is made by a cheque, pay order or demand draft, a certificate shall normally be issued immediately, and he dnte of such certificate shall be the date of payment,

(2) Where payment for the purchase of a certificate is made by a cheque, pay order or demand draft, the certifi- cate shall not be issued before the proceeds of the cheque, ruv order or demnnrt dm ft, ?i the rase may be, are realised

106 GI/81—4.

and the date of such certificate shall be the date of encash- ment of the cheque, pay order or demand draft, as the case may be.

(3) If for any reason a certificate cannot be issued im- mediately, a provisional receipt shall be given to the purcha- ser which may later be exchanged for a certificate and the date of suclt certificate shall be as specified in sub-rulo (1) or sub-rule (2), as the case may be.

10. Certificate in lieu of proceeds of old certificate.—A holder of an old certificate entitled to encash that certificate may make an application in Form I for the grant of a certificate under these rules; on receipt of such application, there shall be issued to the applicant n certificate under these rules, the date of Issue being the date on which the old certificate duly discharged is presented.

11. Irregular holding.—(1) Any certificate purchased or acquired in contravention of these rules shall be encashed by the holder as soon as the fact of the holding being in con- travention of these rules is discovered, and no interest shall be paid on any holding in contravention of these rules.

(2) If any interest has been paid on any holding which is in contravention of these rules, it shall be forthwith refunded to the Government failing which the Government shall be entitled to recover the amount involved from any money payable by the Government to the investor or as on arrear of land revenue.

12. Identity Slip.—(1) If a request for ihe issue of an identity slip is made at any time by an individual adult holder of a certificate including a holder on behalf of a minor or by joint holders to the post office where the certifi- cate stands registered, an identity slip shall be issued to such holder or holders on his or their signing the identity slip.

(2) The identity slip shall be surrendered at the time of the final discharge of the certificate or in case of its loss, a declaration of such loss shall be furnished to the post office in the form laid down by the Director General, Posts and Telegraphs.

13. Transfer from one post office to another— (1) A certificate may be transferred from a post office at which it stands registered, to any other post office on iho holder or holders making an application in the form laid down by the Director General, Posts and Telegraphs, at either of the two post offices.

(2) Fvery such application shall be signed by the holder

or holders of the certificate;

Provided that in the case of a Joint 'A' Type Certificate or a Joint 'B' Type Certificate, the application may be signed bv one of the joint holders if the other Is dead.

14. Transfer of certificate from one neison to another— (1) A certificate may be tranierred with the previous con- sent in writing of an officer of the post office as sneufitd Vielow (hereinafter referred to in these rules as authorised Postmaster).

Cases in which transfer can be sanctioned

Designation of the officer competent to grant permission for transfer.

(a) (i) From the name of a deceased holder to his heir,

1 Head Postmaster or Sub- J- Postmastor of the post office where the certificate stands registered.

(ii) From a holder to court of law, or to any other person under the orders of a court of law. (iii) From a single holders to the names of two joint holders of whom the transferor shall be one.

(iv) From joint holders to the name of one of the

joint holders.

(b) Ml other cases

Head Postmaster.

(2) An authorised Postmaster shall give his consent to the transfer of a certificate only if the following conditions are satisfied, namely :—

(j) the transferee is eligible under these roles to purchase

certificate :

fbl the transfer is made after the expiry of a period of at least oric year from the dale of the certificate or where the transfer is sought before the expiry of such peiiod, the transfer falls under any of the following categories, namely :—

(i) transfer to a near relative out of natural love and

affection ;

Explanation.—For the purposes o this rale, ''near relative-" means husband, wife, lineal ascendant or descendant, brother or sister.

fii) transfer in the name of the heir of the deceased

holder:

fiii) transfer from a holder to a court of law or to any

other person under the orders of a court of law:

(Iv) transfer in accordance with rule 16 ; and

fvi transfer in the name of the survivor in the ev"nt

of the death of one of the ioint holders.

(e) An application for the transfer is made in the form laid down bv the Director General, Postsi and Telegraphs and is fvijmed by the holder or holders of the certificate :

Provided that in the case of a Joint 'A' Type Certificate or a Joint 'B\ Type Certificate, the application may be signed by one of tho holders if the other is dead.

(3) Without prejudice to the provisions of nub-rule (2), an authorised Postmaster shall cive his consent to the trans- fer of a certificate held on behalf of a minor only if at the time of the proposed transfer, a parent or the jniardfan referred to in sub-clause (J) or. as the case may be, sub- clause Hi), of clause (b) of section 5 of the Act, certifies in writing, that the minor is alive and that such transfer is in his interest.

(4) Tn every case of transfer, other than a transfer under rule 16; the original certificate shall be duly discharged and the new certificate bearing the same date as that of the ori- einal certificate surrendered shall be issued in the name of the transferee.

15. Transfer from sinrie holding to Joint holding and vice- verse.-—Subject to the provisions contained in Sub-rule (1) of rule 14. on an application to this effect being made—

fa) a certificate in the name of a single holder may be transferred jointly in the names of the holder and anv other person ;

(bl a certificate In the names of joint holders may be transferred to the name of one of the joint holders.

16. P1edain.fr of certificate.¹—(11 On an application being mad

(a) the President of Tndia or Governor of a State in

his official .caoaci'y;

fb) the Reserve BanV of India or a scheduled banV. or a co-operative society, including a co-operative bank ;

(c) a corporation or a Government company; and

(d 1 a local authority;

Provided that the tranfer of a certificate purchased on behalf of a minor shall not be permitted under this ijub-rule unless the parent or the guardian of the minor referred to in srub-clause (T) or, a" the case may be, sub-clause (ii), of clause (b) of Section 5 of the Act certifies in written that the minor is alive and the tranfer is for the benefit of the minor.

(2) WheD any certificate is tranferred as security under sub-rule (1), the Postmaster of the oflce if registration shall make the following endorsement on the certificate, namely—

"Transferred as security to ".

(3) Except as otherwise provided in these rules, the trans- feree of a certificate under this rule shall, until it is re-trans* fcrred under sub-rule (4), be deemed to be the holder of the certificate.

C4) A certificate transferred under sub-rule (2) may, on the written authority of the pledgee, be re-transferred with the previous •sanction in writing of the authorised Postmaster and when any such re-transfer is made, the Postmaster of the office of registration shall make the following endorse- ment on the certificate.

"Re-transferred to ".

Note 1.—A Gazetted Officer of the Government accepting the certificate as security under siib-rule (1) or releasing the pledge under sub-rule (4) on behalf of the President or the Governor of a State, shall certify that he is duly authorised under article 299 of the Constitution to execute such instru- ments or deeds on behalf of the President of India or the Governor of the State, giving the particulars of the number and date of the notification of the Government authorising him in this behalf.

Note 2.—An officer of the Reserve Bank of India or a schedule bank or a co-operative society including a co-opera- tive bank, a corporation or a Government company or a local authority, as the case may be, acceptinjf the certificate as security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of the respective institution, shall certify under bis 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,

(5) Where as a result of several endorsements made under sub-rules (2) and (4) on a certificate, no space m left for nidkinK lurthei endorsement of a like churacler on that certificate, a fresh certificate may be issued by the Post- muster of the office of registration in lieu of such certificate.

(6) A fresh certificate issued under sub-rule (5) shall be treated as equivalent to the certificate in lieu of which it has been issued tor all the purposes of these rules.

17, Replacement, of lost or destroyed certificate.—(1) If a certificate is lost, solen, destroyed, muKUated or defaced, the person entitled thereto may apply for the issue of a dupli- cate certificate to the post otticc, where the certificate ii legtstered or to any other post office in which case the application will be forwarded to the post office of registra- tion,

(2) Every such application shall be accompanied by^—

(a) a statement showing particulars, such as, number amount and date of the certificate and the circum- stances attending such loss, theft, destruction, mu- tilation or defacement;

(b) an identity slip, if any.

(3) If tbi officer iD charge of the post office of registra- tion is satisfied of the loss, theft, destruction, mutilation or defacement of the certificate, he shall issue a duplicate certi- ficate on the applicant's furnishing on indemnity bond in the form laid down by the Director General, Posts and Telegraphs with one or more approved sureties or with a bank's guaran- tee .

Provided that where the face value or the aggregate face value Of the certificate or certificates lost, stolen, destroyed, mutilated or defaced is Rs. 500 or less, a duplicate certificate or certificates may be issued on the applicant turnishlng an indemnity bond without any such surety or guarantee :

Provided further that where such application is nude with respect to a certificate mutilated or defaced, of Whatever face value, a duplicate certificate may he issued without any such indemnity bond, surety or guarantee, if the certificate mutila- ted or defaced and the identity slip, if any, are surrendered and the certificate is capable of being identified as the one originally issued.

(4) A duplicate certificate issued under sub-rale (3) shall be treated as. equivalent to the original certificate for all the purposes of these rules except that it shall not be encashable at a post office other than the post office at which such certi- ficate is registered without previous verification.

18. Nomination.>—(1) Subject to the provisions of sub- rules (2) to (6), the single holder or joint holders of a certificate may, by filling in necessary particulars, in Form I at the time of purchasing the certificate, nominate any person who, in the event of death of the single holder or both tbe joint holders, as the case may be, shall become en- titled to the certificate and to the payment of the amount due thereon. If such nomination is not made at the time of purchasing the certificate, it may be made by the slnRle holder, tbt joint holders or the surviving Joint holder, as the case may be, at any time after the purchase of the certificate but before its maturity, by means of an application in Form 1 to the Postmaster of the office at which the certifi- cate stands registered.

(2) There shall not be more than one nominee, excent in cases where the denomination of a certificate is R". 500 or more.

(3) No nomination shall be made in respect of a certifi-

cate applied for and held by or on behalf of a minor.

(4) A nomination made by the bolder or holdeis of a certificate under this rule may be cancelled or varied by submitting an application in Form 3 affixing postage stamps of the value specified in sub-rule (2) of rule 29 together with the certificate to the Postmaster of the post office at which the certificate stands registered,

(5) Separate applications for nomination or cancellation of a nomination or variation of a nomination shall be made in respect of certificate registered on different dates.

(6) The nomination or the cancllation of a nomination or the variation of a nomination shall be effective from tbe date it is registered in the po&t office, which date shall be noted on the certificate.

19. Encashment on maturity and payment of interest— (1) The maturity period of a certificate of any denomination shall be six years commencing from the date of the ccrtifi- ca'e. A certificate shall be rncashable at par at any time after the expiry of its maturity period.

(2) Interest on a certificate of anv denomination shall be payable at the end of every six months from the date of the certificate, but not beyond the maturity period for which the certificate is held. Such interest shall be calculated at the rate of 12 per cent per annnum on the face value of the certificate.

Note : The interest for each six monthly period can be claimed at any time after the expiry of that period and where for any reason such interest havinp be- come due has not been claimed, no additional in- terest on that ground shall be payable under anv circumstances.

20. Premature encashment.—d) Not withstanding anything contained in rule 19, a certificate of any denomination mny, V the ontion of the bolder or holder" be encashed of a dis- count at anv time after the expiry of three years from tbe date of the certificate, in which event the amount payable after adjustment of discount shall bo us specified w the Table below :

TABLE

Amount ptiyable after adjustment of discount on premature encasnment of a certificate.

p oriod from the date of the certificate to the dateof its encashment

i

Amount payable (Rs.) on a certificate of Rs. 100 denomination

3

91.55 years or more, but less than 3 years and 6 months.

3

89.90 years and 6 months, or more, but less than 4 years.

4

83.15 yean or more, but les>s than 4 years and 6 months.

4

86.35 yoars and 6 months, or more, but loss than 5 years.

5

84.45 jears or more, but loss than 5 yoars and 6 months.

5;

82 45 years and 6 months, or more, but less th.in 6 years.

Note:—The amount payable after adjustment of discount on a certificate of any other denomination stnll be proportionate to the amount specified in the Table above.

<2) Notwithstanding anything contained in sub-rule (1) und rule 19, and subject to sub-rule (3), a certificate may be prematurely encashed bcfoie the expiry of three years from the date of Ihe ceitificute in any of the following circumstan- ces, namely ;—

(a) on the death of the holder or both the holders in

case of joint holders ;

(b) on forfeiture by a pledgee being a Gazetted Government Officer, when the pledge is in conformity with the piovl- sions of these rules;

(c) when ordered by a court of law.

(3) If a certificate is encashed under sub-rule (2), the face value of the certiiicat e shall be payable after deducting therefrom discount as specified below :—

(i) if th certificate is en- discount equivalent to the inter-

cashed before the ex- est paid or payable under piry of one year from sub rub(2) of rule 19. the date of tho certi- ficate,

(ii) if the certilicate is en- discount equivalent to the dif- cashed after the ex- forence between (a) tho in- piry of ono year but terest paid or payable under befor the expiry of sub-rulo (2) of rule 19 and three years from tho (,b) simple interest calculated date of the certificate. on the face value of the certificate, at the rate appli- cable from time to time to single accounts under the Post Office Savings Bank Rules, 1965, for the complete mon- ths for which the certificate

has been held.