116. Substitution of new sections 3, 3A and 3B for section 3.
For section 3 of the principal Act, the following sections shall be substituted, namely:-
Definitions.
‘3. In this Act, unless the context otherwise requires,-
(a) “account” means an account opened under any of the Savings Schemes;
(b) “administrator” means an administrator as defined in clause (a) of section 2 of the Indian Succession Act, 1925 (39 of 1925);
(c) “Authorised Officer” means––
(i) in the case of a Post Office Savings Bank, an officer authorised by the Director General Posts; and
(ii) in the case of State Bank of India or a banking company or any other company or institution, an officer so authorised by State Bank of India or that banking company or that other company or that institution, as the case may be;
(d) “banking company” means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949(10 of 1949);
(e) ‘‘depositor” means an individual by whom, or on whose behalf money has been deposited in a Government Savings Bank and “deposit” means the money so deposited;
(f) “executor” means an executor as defined in clause (c) of section 2 of the Indian Succession Act, 1925 (39 of 1925);
(g) “Government Savings Bank” means––
(i) a Post Office Savings Bank; or
(ii) State Bank of India or a banking company, or any other company or institution, as the Central Government may, by notification in the Official Gazette, specify for the purposes of this Act;
(h) “guardian” in relation to a minor or a person of unsound mind means––
(i) either of the parents;
(ii) where neither parent is alive or where neither or the only living parent is incapable of acting as such, a person entitled under the law for the time being in force to have the care of the property of a minor or a person of unsound mind, as the case may be;
(iii) legal guardian appointed by a court;
(i) “minor” means a person who has not attained the age of majority under the Indian Majority Act, 1875 (9 of 1875);
(j) “prescribed” means prescribed by rules made under this Act;
(k) “Savings Schemes” means the Government Savings Schemes, including Savings Certificates and Public Provident Fund Scheme, listed in the Schedule;
(l) “Schedule” means the Schedule annexed to this Act.
Framing of Savings Schemes.
3A. (1) The Central Government may, by notification in the Official Gazette, frame new Savings Schemes or amend or discontinue existing Savings Schemes to promote household savings in the country.
(2) The Central Government may, by notification in the Official Gazette, include or omit or amend Savings Schemes in the Schedule.
(3) The notification referred to in sub-section (1) may include any or all of the following provisions, depending on the design of such Scheme, namely:––
(a) the persons who shall be eligible to make deposit in a Savings Scheme;
(b) the terms and conditions subject to which deposit may be made;
(c) manner of calculation, frequency of payment and rate of interest payable on the deposit;
(d) the maximum and minimum limits of deposit;
(e) premature closure, withdrawal of deposit, grant of loans against deposit and transfer of deposit;
(f) any other provision depending on the purpose and design of the Savings Scheme.
Deposit by minor.
3B. (1) A minor who has attained the age of ten years may open and operate an account in the Government Savings Bank, if so permitted under a Savings Scheme.
(2) Subject to the provisions of sub-section (1), the guardian of a minor may open and operate an account on behalf of the minor, till he becomes a major.’.
Notes on Clauses:
Clause 116 of the Bill seeks to substitute new sections 3, 3A and 3B for the existing section 3. Section 3 relates to definitions, which, inter alia, defines the terms "account", "administrator", "Authorised Officer", "banking company", "depositor", "executor", "Government Savings Bank", "guardian", "minor", “prescribed”, "Savings Schemes" and "Schedule".
The proposed section 3A provides for framing of Saving Schemes by the Central Government or to amend or to discontinue existing Savings Schemes to promote household savings in the country. It also provides for amendment of the Schedule by the Central Government , by notification for inclusion of any new Savings Schemes, etc., in the Schedule.
The proposed new section 3B provides for deposit by the minor who has attained the age of ten years. It further provides that the guardian of a minor below the age of ten years may open and operate an account on behalf of such minor.
