Government Savings Promotion General (Second Amendment) Rules, 2023 – G.S.R 488(E)

Government Savings Promotion General (Second Amendment) Rules, 2023 – G.S.R 488(E)

Government Savings Promotion General (Second Amendment) Rules, 2023 – G.S.R 488(E)

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION

New Delhi, the 3rd July 2023

G.S.R 488(E).—In exercise of the powers conferred by section 15 of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Government Savings Promotion General Rules, 2018, namely:-

1. Short title and commencement. — (1) These rules may be called the Government Savings Promotion General (Second Amendment) Rules, 2023.

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

2. In the Government Savings Promotion General Rules, 2018 (hereinafter referred to as the “principal rules”), in rule 5, in sub-rule (2) after clause (b), the following proviso shall be inserted, namely:-

“Provided that, in case of account opened on behalf of a minor, recent passport size photograph of the guardian only shall be submitted;”.

3. In the principal rules, in rule 5 after sub-rule (6), the following sub-rule shall be inserted, namely:-

“(7) Change of name or surname may be allowed by the account office by following the procedure laid down by Reserve Bank of India for change of name or surname in Bank Savings Account.” .

4. In the principal rules, in rule 8, for sub-rule (3), the following shall be substituted, namely: –

“(3) An account opened as a Single Account cannot be subsequently converted into a Joint Account or vice versa :

Provided that, conversion of Joint Account into single account shall be allowed only in case of a single surviving Joint Account holder.” .

5. In the principal rules, in rule 10, for sub-rule (4), the following shall be substituted, namely:-

“(4) In the event of death of guardian or on order from any Court of Law in any case of change in the guardian, the succeeding guardian shall be eligible to operate the account of the minor or the person of unsound mind as the case may be.”

6. In the principal rules, in rule 13, in sub-rule (3), in clause (1), for the words “Account Opening Form,”, the words “Account Opening Form or Certificate of non-availability of account opening form by the Account Office and in such cases all the information appearing in account opening form shall be verified by the transfer or Accounts Office,” shall be substituted.

7. In the principal rules, in rule 13, in sub-rule (3), in clause (vii), for the words “the Account’, the words “the account in favour of transferee Accounts Office” shall be substituted.

8. In the principal rules, in rule 14, after sub-rule (8), the following sub-rule shall be inserted, namely:-

(9) Non-resident Indians shall be eligible to be nominated as nominee subject to the condition that payment to such nominee/s shall be on non-repatriation basis.” .

9. In the principal rules, in rule 15, for sub-rule (6), the following shall be substituted, namely:-

“(6) If a depositor dies and there is no nomination in force at the time of his death, and the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925), or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction, is not produced within six months from the date of 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 Rupees five lakh, the Authorised Officer of the Accounts Office or the authority specified by the Government Savings Bank to which the Accounts Office belongs, for reasons to be recorded in writing, 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 administer the estate of the deceased, on an application in Form-11 accompanied by the following documents; namely:-

(a) Death certificate of the account holder;
(b) Passbook or deposit receipt or statement of account in original;
(c) Affidavit in Form-13;
(d) Letter of disclaimer in Form-14;
(e) Bond of Indemnity in Form-15; and
(f) Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Accounts Office and before the payment of claim, the amount shall be paid by the Accounts Office to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court only 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; and
(d) Identity proof of the legal heir.

(ii) if the eligible amount in a deceased account is above Rupees five lakh, the amount shall be paid by the Accounts office to the claimant on submission of the probate of his will or letters of administration of estate or a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the Court, or legal heir certificate issued by the revenue authority not below the rank of Tahsildar having jurisdiction along with the following documents; namely:-

(a) Claim form;
(b) Passbook or deposit receipt or statement of account in original;
(c) Death certificate of the account holder; and
(d) Identity proof of the legal heir;

Provided further that, in case of any dispute raised before the Accounts Office and before the payment of claim, the amount shall be paid by the Accounts Office to the claimant on submission of a succession certificate granted under the Indian Succession Act, 1925 (39 of 1925) issued by the court only along with the following documents; namely: –

(a) Claim form;
(b) Passbook or deposit receipt or statement of account in original;
(c) Death certificate of the account holder; and
(d) Identity proof of the legal heir.”

10. In the principal rules, in rule 15, after sub-rule (6), the following sub-rule shall be inserted, namely:-

(7) Surviving nominees will have to submit any of the identity documents prescribed in rule 6 of these rules.”

11. In the principal rules, in rule 24, in sub-rule (1), for clause (a), the following shall be substituted, namely:-

“(a) Opening of Accounts, accepting deposits, making payments of interest and maturity or prematurity proceeds, disbursal of loan or withdrawal, closing and transferring accounts in conformity to these and scheme provisions and maintaining records thereof;” .

12. In the principal rules, in Schedule-I, under the heading “Forms to be used for operation of an account’, after serial number 15 and entries relating thereto, the following shall be inserted, namely: –

16. GSPR-16 To be issued by transferor Accounts Office

13. In the principal rules, after FORM — 15, the following FORM shall be inserted, namely:-

“FORM-16
(See Rule 13 of Government Savings Promotion Rules, 2018)
To be issued by transferor account office

To

The Branch Manager/Post Master
.. … … … … (Name of Account Office)
.. … … … … (Address)

Subject:- Transfer of __________ (Name of Scheme) account number __________ in the name of ___________ (Name of account holder/s).

Sir,

It is certified that the account opening form for account No. of. (Name of Scheme) was maintained by this office with the following details:

  1. Name of Account holder;
  2. Name of Joint Holder(s) if any;
  3. Address;
  4. Scheme Name;
  5. Account Number;
  6. Date of opening;
  7. Date of extension/s, opted by the account holder; and
  8. Name of nominee/s

It is further certified that the account opening form is not traceable and the transferee account office may obtain new account opening form along with prescribed identification document.

Yours faithfully,

(Branch Manager/Post Master)
Name of Bank/Post Office.” .

[F. No. 1/4/2023-NS]
ASHISH VACHHANI, Addl. Secy.

Note: The principal rules was originally published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (1) vide notification number G. S. R. 1003 (E), dated the 8th October, 2018 and subsequently amended vide number G.S.R. 238(E), dated the 31st March, 2023.

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