Amendment of Act 5 of 1873.
146. In the Government Savings Promotion Act, 1873,––
(a) in section 4A, for sub-section (4), the following subsection shall be substituted, namely:––
“(4) If a depositor dies and no nomination is 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, then, where the eligible balance does not exceed such limit as may be prescribed, the Authorised Officer may, for reasons to be recorded in writing, pay the eligible balance to the person legally entitled to receive it or to administer the estate of the deceased in accordance with such procedure and manner as may be prescribed.”;
(b) in section 15, in sub-section (2), for clause (i), the following clause shall be substituted, namely:––
“(i) the limit, procedure and manner under sub-section (4) of section 4A;”;
(c) in the Schedule, in PART A, for serial numbers 7 and 8 and the entries relating thereto, the following shall be substituted, namely:––
“7. Public Provident Fund Scheme
8. National Savings Certificates (VIII Issue) Scheme, 2019
9. Kisan Vikas Patra Scheme, 2019
10. PM CARES for Children Scheme, 2021”.
Notes on Clauses:
Miscellaneous
Clauses 145 and 146 seek to amend the Government Savings Promotion Act, 1873.
It is proposed to substitute sub-section (4) of section 4A of the said Act to make a provision for payment of eligible balance to the legal heir in case of death of the depositor without nomination. It is, inter alia, proposed to include legal heir certificate also to be a valid proof for payment of eligible balance to the person legally entitled. This is to simplify and facilitate the process of payment of claim where no nomination had been made by the depositor in the account exceeding such balance as may be provided in the rules.
It is further proposed to consequentially substitute clause (i) of sub-section (2) of section 15 of the said Act.
It is also proposed to amend the Schedule to incorporate new Savings Schemes notified on or after 12th December, 2019.
