SAVING CERTIFICATE PROCEDURE

(SECOND EDITION)

(CORRECTED UP TO 31.12.2006)

ISSUED UNDER THE AUTHORITY OF DIRECTOR-GENERAL OF POSTS, INDIA AND SECRETARY TO GOVERNMENT OF INDIA DEPARTMENT OF POST MINISTRY OF COMMUNICATIONS & INFORMATION TECHNOLOGY

CONTENTS

Rule	Subject	Page
1	Definitions	1
2	Delegation of duties	1
3	Stocking and supply of certificates	1
4	Custody of certificates	2
5	Maintenance of the Stock Register	3
6	Disposal of surplus stocks	3
7	Yearly lists of unsold certificates	4
8	Yearly lists of unclaimed certificates	5

9	Application for purchase of certificates – Signing of	5
10	Application on behalf of Minors	6
11	Modes of payment for certificates purchased	6
12	Scrutiny of application for purchase and procedure for the issue of certificates	9
13	Issue of Preliminary receipt	11
14	Provisional receipts for certificates	12
15	DELETED	12
16	Sale of certificates independently by selected branch post offices	12
17	Sale of certificates through authorized Agents and payment of their commission through Post Office	13
18	Maintenance of the applications for purchase	23
19	Disposal of applications of purchase received at Branch Offices	23
20	Preparation of Journals of certificates issued	23
21	Payment of certificates by branch offices authorized to do certificates work independently	25
22	Identity Slips	25
23	Encashment of Certificates	26
24	DELETED	30
25	DELETED	30
26	DELETED	30
27	Encashment of certificates of minors	31
28	DELETED	31
29	Encashment of certificates held in joint names	31
30	Encashment of certificates at Branch Post Offices	31
31	Encashment of certificates at an office other than the office of Registration	32
32	Partial payment and exchange of certificates	35
33	Journals of certificates discharged	36
34	Memo of admission of payment	37

Rule	Subject	Page
35	Nomination	37
36	Change of name of holder	39
37	Transfer of certificate from one Post Office to another	39
38	Transfer of certificates from one holder to another	41
39	Pledging of certificates as security	42
40	Disposal of unclaimed and undeliverable certificates	44
41	Certificates spoiled before issue	44
42	Loss or theft of certificates before issue and from the custody of post office after issue	44
43	Loss, theft, destruction, mutilation or defacement of certificates in the custody of the holder	46
44	Issue of duplicate certificates	48
45	Attachment of a certificate by a Court of Law	50
46	Confiscation by Customs or Excise authorities	51
47	Payment of savings certificates to an authority empowered under the law	51
48	Clerical or arithmetical mistakes in the issue of certificates	51
49	Encashment of certificates held by Army and Air Force personnel	54
50	Payment of the value of certificates in the name of deceased holders	54
51	Head Office Monthly Summaries	62
52	Certificates Voucher List	63
53	DELETED	63
54	DELETED	63
55	DELETED	63
56	Kisan Vikas Patra – Procedure to be followed	63
57	DELETED	65
58	6-Year National Savings Certificates (VIII – Issue)	66

APPENDICES

I. Schedule of fees to be recovered from the investors/holders of certificates

II. Register of duplicate certificates issued

III. Intimation of seizure of NSCs

IV.: Claim application forms, where nomination registered
V.: Claim application forms, for claims on legal evidence

VI. Sanction of deceased claim cases

VII. Register for watching settlement of claims

VIII. Period of preservation of records

IX.: Calendar of Returns
X.: DOs and Don’ts for Counter Assistants and Supervisors for issue and discharge of savings certificates

POST OFFICE SAVINGS CERTIFICATES

The rules in this Chapter apply mutatis mutandis to :

i. 5-Year Post Office Cash Certificate (Discontinued from 14.6.1947)

ii. 10-Year National Plan Certificates (Discontinued from 31.5.1957)

iii. 10-Year National Savings Certificates (1^st Issue) (Discontinued from 14.3.1970)

iv.: 12/7/5 Year National Saving Certificates: 12 Year discontinued from 31.5.1957 7 Year discontinued from 31.5.1957 5 Year discontinued from 30.6.1953
v.: 12-Year National Plan Savings Certificates (Discontinued from 14.11.1962)

vi. 12-Year National Defence Certificates (Discontinued from 14.3.1970)

vii. 7-Year National Savings Certificates (II Issue) (Discontinued from 30.9.1988)

viii. 7-Year National Savings Certificates (III Issue) (Discontinued from 31.12.1980)

ix.: 7-Year National Savings Certificates (IV Issue) (Discontinued from 30.4.1981)
x.: 7-Year National Savings Certificates (V Issue) (Discontinued from 30.4.1981)

xi. 12-Year National Savings Annuity Certificates (Discontinued from 31.12.1980)

xii. 5-Year National Development Bonds (Discontinued from 30.4.1981)

xiii. Six Year National Savings Certificates (VI Issue) (Discontinued from 31.3.1989)

xiv. Six Year National Savings Certificates (VII Issue) (Discontinued from 31.3.1989)

xv. 10-Year Social Security Certificates (Discontinued from 31.8.1990)

xvi. 5-Year Indira Vikas Patras (Discontinued from 15.7.1999)

xvii. Kisan Vikas Patras

xviii. 6-Year National Savings Certificates (VIII Issue)

1

DEFINITIONS

1. For the purpose of these Rules:

(a): Certificate means a Savings Certificate issued by the Government of India and sold through the Post Office.
(b): Stock Depot means Postal Stock Depot or Postal Stores Depot or Circle Stamp Depot as the case may be.
(c): The ‘Act’ means the Government Savings Certificates Act, 1959 (46 of 1959).
(d): The “Rules” means the Post Office Savings Certificates Rules, 1960, National Savings Certificates (First Issue) Rules, 1965, National Savings Certificates (Fourth Issue) Rules, 1970, National Savings Certificates (V Issue) Rules, 1973, National Savings Certificates (VI & VII Issue) Rules, 1981, Social Security Certificates Rules, 1982, 12-Year NSAC Rules 1976, 5-Year National Development Bonds, 1977, Indira Vikas Patra Rules, 1986, Kisan Vikas Patra Rules, 1988 and National Savings Certificates (VIII Issue) Rules, 1989.

DELEGATION OF DUTIES

2. (i) All the duties of the Postmaster in connection with the Savings Certificates may, under the orders of the Head of the Circle, be performed by the Deputy Postmaster, Assistant Postmaster or Supervisor, such delegation being specifically mentioned in the memorandum of distribution of work, except the following which shall be the personal responsibility of the Head Postmaster:

(a): Deciding claims in respect of Savings Certificates of deceased holders which lie within his power of decision and the safe custody of records relating to such claims.
(b): Signing and submission of savings certificates returns to the Postal Accounts Office in offices where there is no separate Selection Grade Official Incharge of the Savings Certificate branch.
(c): Sanctioning the transfer of savings certificates from one person to another.
(d): Endorsing the remarks “Checked” “duplicate on record” on the original invoice to be sent to Postal Accounts Office.

(ii) The Postmaster will, however, remain personally responsible for the general functioning of the Savings Certificates branch and, in particular, the regular submission of the Savings Certificates returns on the due dates.

STOCKING AND SUPPLY OF CERTIFICATES

3. Certificates of all types and denominations are printed at the Government of India Security Press, Nasik, who supplies them to the Circle Stamp Depots. The Circle Stamp Depots supply to H.O. The H.Os supply to S.Os in their account jurisdiction. A quarterly indent to meet the requirements of three months shall be submitted by the S.O. to its H.O. by the 15^th of May, August, November and February and by the

H.O. to the Circle Stamp Depot on 1^st of June, September and March in the following form:

Denomi-Type No. Sold Balance Number Reasons for nation during on hand required indenting more

the last					than the difference
quarter					between columns 3 & 4
1	2	3	4	5	6

2

In order to avoid wastage of certificates and also consequent work involved in their destruction every time a change in series takes place, care must be taken to see that excessive stocks are not held by Post Office. If for any reason, extra supply is found necessary, timely action should be taken to forward an emergent indent with reasons justifying the special supply. An estimate of requirements given by the National Savings Organization should be carefully scrutinized and should not be accepted without examination. Excessive supplies should be withdrawn immediately after the fact is known.

The supplying offices viz. the Circle Stamp Depots and the H.O shall while supplying the Certificate prepare in triplicate an invoice from a serially numbered book of invoices (form N.C-13) kept separately for each office. The pencil copy of the invoice shall be retained in the book of invoices as office copy and the duplicate and triplicate copies sent with the certificates to the office concerned. The receiving office will check the entries in the invoice with the certificates, and if found correct, return the duplicate copy, duly receipted to the dispatching office. In case of a discrepancy, the matter should be taken up immediately with the dispatching office. The triplicate copy of the invoice shall be filed in serial order in the guard book of invoice received. The duplicate copy of the invoice on receipt back in the dispatching office shall be pasted to its original.

Note 1:-Before blank certificates are supplied to S.O or to the Counter Assistant in the H.O, they should be impressed with a rubber stamp indicating the name of the Circle and the Postal Accounts Office,

e.g. Tamil Nadu (Circle)/Madras Postal Accounts Office.

Note 2:- The Single Handed Post Offices should be supplied with the Savings Certificates to the bare minimum requirement. The Heads of Circles may withdraw stock of Savings Certificates from EDSOs and Single Handed Post Offices where there is no sale or at their discretion.

Note 3 :- Stock and supply of savings certificates by Circle stamp Depots.

The work relating to the stock and supply of Savings Certificates etc. is being done by the Postal Stores Depots in each circle. With the formation of the Circle Stamp Depots in each Circle, this work has been transferred by the Postal Stores Depot to the Circle Stamp Depot in some Circles as a local arrangement for exercising proper control over the effective stock and supp1y to the H.P.Os. After the switch over of the work from the P.S.D. to the C.S.D., bulk supply of blank cash certificates are made by the stamp depots to the HPOs. Stocking, sale and supply to the sub offices are done through the stock register in the HPO. The safe custody and verification of stock is done at the H.O., as is done in the case of Postal Orders, pass books etc. Until such time they are sold to the public, the Cash Certificates do not have any money value. It is treated only as an item of stationary. Unsold stock of Cash Certificates are verified by the visiting Divisional Officers periodically.

With a view to extending the above procedure uniformly to all the Circles, with effect from 1-3-1987 the work of stocking and supply of certificates was transferred from the Postal Stores Depot to the Circle Stamp Depot wherever it has not been done, with immediate effect. After the transfer of the work, the Postmasters should indent the certificates only from the Circle Stamp Depots. All the due returns etc., now being submitted to the store depots should be sent by the concerned units to the Circle Stamp Depot in future. The fortnightly consolidated list of certificates issued to Post Offices should, be sent by Circle Stamp Depots to the Circle Postal Accounts Office in accordance with Rule 377(4) of P&T Manual Volume VIII.

Note 4 :-The work of stocking savings certificates of old series has been transferred to the Circle Stamp Depots with effect from 29.5.1989.

CUSTODY OF CERTIFICATES

4. (1) Certificates, not actually required for issue to the public must be kept in the custody of the Postmaster. He will issue certificates to the counter Assistant for issue as soon as an application for purchase is received at the counter. In large offices the Head of the Circle, may if necessary, prescribe that a working stock of Certificate should be advanced to the counter Assistant under receipt for issue during business hours and at the end of the day the Postmaster should satisfy himself by reference to the issue journal that the balance with the counter Assistant is correct. The working stock to be advanced should be fixed by the Postmaster and the numbers issued to the investors during the day should be replenished from the main stock taking care to see that the serial order is maintained. A separate Stock Register need

3

not be maintained by the counter Assistant. The Counter Assistant will lock the box containing the working stock and keep it for the night in the Treasury or in the Iron Safe of the Postmaster.

(2): The Postmaster will be responsible for the security of certificates kept by him and all postal officials, entrusted with the certificates, will be personally responsible in case of loss or theft or misuse caused by their negligence. Blank certificates shall always be exchanged under proper receipt. The Official responsible for loss or theft or misuse shall execute an Indemnity Bond indemnifying the cost against any fraudulent payment on such lost, stolen and misused blank certificates.
(3): Certificates received in a Post Office for any purpose should be kept in the personal custody of the Postmaster who will be responsible for their safe custody till disposal.

MAINTENANCE OF THE STOCK REGISTER

5. (1) All supplies of certificates received by Head and Sub Offices must entered in the stock register (NC-12) on the date of receipt. A separate register or set of pages in the register should be allotted for each denomination and type. The first and last serial numbers of each block of certificates, the total number received and the balance in hand shall be entered in the relevant columns of the stock register. The total number of the certificates issued alongwith their serial numbers shall be shown in the issue column of the register against the date of issue and the balance on hand after each issue noted in the balance column. The balance should be verified once in a month by the Postmaster who should initial and date the registers in the column provided for the purpose in token of having exercised this check.

(2) Stock Register in respect of certificates supplied and issued by Sub Offices : -The HO shall also maintain for each of its SOs a separate stock register of certificates in Form NC-12(a). As and when supply is made to a SO the date of supply, the first and last serial numbers of the certificates supplied, the total number supplied and the balance in the SO after the supply shall be entered in the relevant columns of the register. On receipt of the issue journal from the SO the date of issue, the serial numbers of certificates issued, total number of certificates issued and the balance in the office shall be entered in the said register. It should be ensured that the continuity of the serial numbers of the certificates issued contained in a particular block remains unbroken. The entries in the register should be signed by the Supervising Officer in token of having exercised this check.

On the first working day of each month, the SPM should submit a statement showing the stock position of certificates in manuscript to the HO for verification. The official in charge of stock register of certificates of SO will verify the entries in the HO stock register for the SO, sign the statement in token pf having carried out the check and keep the statement in separate guard file for each SO. These statements will be preserved for a period of 3 years.

DISPOSAL OF SURPLUS STOCK

6. (1) Surplus stock of certificates should never be held in HOs and SOs and should be returned to the supplying office. Whenever certificates are required to be returned to the supplying office either as a result of stock being excessive or due to withdrawal of a series, an invoice in form NC-13 shall be prepared in triplicate by the S.O. and in quadruplicate by the H.O. The original should be retained by the despatching office and the remaining copies sent to the supplying office. After verification, the supplying office will return one copy of the invoice duly receipted to the despatching office and retain the second copy in the office. In the case of stock depot the third copy received from the H.O. will be sent to the Postal Accounts Office. In the despatching office the copy received back from the supplying office will be pasted to the original on record.

(2): The stock of certificates of old series no longer in operation should immediately be returned to the respective Postal Stamp Depots and no stock of such discontinued certificates should be kept in the HO.
(3): After the close of the year, all sub-offices should furnish the particulars of certificates returned to Head Office during the year due to excessive stock or obsolete issue of certificates in a statement by 15th April, each year. The statement should show type, series, denomination, number of certificates, date of return to Head Office and invoice number issued. Greatest accuracy should be ensured in writing the serial number and the distinguishing letters prefixed thereto. The Postmaster will satisfy himself from the

4

statement that all the certificates returned during the year by the sub-office have been duly accounted for in the RO. He will sign the statement in token of this check. This statement will be kept in a separate guard file in the H.O. During the inspection of the office Inspecting Officers should verify the entries in the statement with NC-12(a) and NC-12 registers maintained at the Head Office.

(4): (i) The surplus stock of these certificates may be disposed of by cutting them into pieces in the presence of the Superintendent, Postal Stamp Depot or some other gazetted officer, as may be decided upon by Head of the Circle, and sold as waste paper to the paper mills. Before destroying the certificates it should be ensured that none of the unissued certificates is missing.
(ii): The amount realised by sale may be credited to Government under the head "unclassified receipts".

(iii) A suitable note of destruction of the certificates may be, made in the respective stock registers to be signed by the officer in whose presence the certificates are destroyed.

Note :-Retention of stock of obsolete and defunct series of certificates :-It is necessary to keep in stock some quantity of the obsolete series for the purpose of reissuing in respect of claims of deceased holders, on conversion from one denomination to another or for the purpose of issuing duplicate certificates when the “overprinted” duplicate certificates are not available. It has been decided that the following number of these series of certificates for each denomination may be retained in the Circle Stamp Depots.

Sl.	Series	Upto Rs.100	Above Rs.100
No.		denomination	denomination

(1)	5-Year Cash Certificates	5	5
(2)	5-Year N.S.Cs.	5	5
(3)	7-Year N.S.Cs.	5	5
(4)	12-Year N.S.Cs.	50	50
(5)	10-Year N.P.Cs.	100	50
(6)	12-Year N.P.S.Cs.	100	5
(7)	10-Year D.S.Cs.	10	5
(8)	12-Year N.D.Cs.	250	100
(9)	10-Year N.S.Cs.(I Issue)	100	100
(10)	12-Year N.S.A.Cs.	250	100
(11)	7-Year N.S.Cs.(III Issue)	250	100
(12)	7-Year N.S.Cs.(IV Issue)	250	100
(13)	7-Year N.S.Cs.(V Issue)	250	100
(14)	5-Year N.D.Bs.	250	100
(15)	6-Year N.S.Cs.(VI Issue) (Rs. 10 denomination)	250	-
(16)	7-Year N.S.Cs.(II Issue)	250	250
(17)	6-Year N.S.Cs.(VI Issue) (other than Rs. 10 denomination)	500	500
(18)	6-Year N.S.Cs.(VII Issue)	500	500
(19)	10-Year Social Security Certificates	-	250
(20)	6-Year Indira Vikas Patras	-	100

Note : For joint certificates in the series, reasonable number may be found within this total limit.

YEARLY LISTS OF UNSOLD CERTIFICATES

7. (1) A statement in manuscript giving the total number along with the first and last serial numbers of certificates of each denomination and of each different series remaining unsold on 31st March of each year shall be prepared by all Post Offices stocking the certificates. Greatest accuracy must be ensured in writing the serial numbers. The distinguishing letter prefixed thereto on no account be omitted.

5

(2): A certificate should be endorsed on the statement under the personal dated signature of the Postmaster that the balance as per the stock register has been verified with the actual balance on hand and found correct.
(3): S.Os will send their statements to their Head Offices so as to reach it not later than 10th April each year. The H.O. should check the statements received from the S.O. with the register in Form NC-12(a) and send them along with its own statement to the Postal Accounts Office positively by the 30th April each year.
(4): There may be cases where the certificates in transit between H.O. and S.O. on 31st March or a day or two earlier will not find place in the statement of the S. O. or H.O. In such cases the H.O. while checking the statement of the unsold certificates of the S.O. with the register in form NC-12(a) should also include the particulars of such certificates in transit in the statement of the concerned S.O. with suitable remarks.

YEARLY LISTS OF UNCLAIMED CERTIFICATES

8. (1) The unclaimed certificates lying in the custody of the Postal Accounts Office are preserved for a period of 30 years from the dates of maturity after which these become due for destruction. In order to give due publicity to enable the purchasers to prefer their claim relating thereto, the Postal Accounts Office will after the expiry of the said period of preservation, furnish to the Director General of Posts a yearly list of all such certificates in the first week of April of the year for notification in the Post Office Circulars and Postal Notices for general information of the public.

(2): If any claim is received, the Postmaster will forward the same to the Postal Accounts Office referring to the relative Director General's Post Office Circular, certifying that he has satisfied himself as to the applicant's identity. In case of doubt, he will require the person claiming to be the holder to produce evidence to prove his identity.
(3): The Postal Accounts Office will return the claim papers along with the relevant certificates, if not already destroyed, with its authority for payment which will show the amounts of principal and interest. On receipt of this authority, payment will be made to the holder or his agent or messenger in the manner laid down in Rules 23, 27, 28 and 50.
(4): The Postal Accounts Offices will furnish the yearly list referred to in para (1) above containing particulars of the unclaimed Savings Certificates due for destruction at the end of each financial year in the proforma given below so as to reach the Director General, Department of Posts, not later than 15th June. A "nil" statement if there is no list to be furnished, should be sent by the said date.

PROFORMA

Name of the Circle ………………………

Sl.No.	Office of Issue	Name of series	Sl. No. of certificate(s) with prefix
1	2	3	4

Denomination Rs.	Date of Issue	Name of holder	Remarks
5	6	7	8

APPLICATION FOR PURCHASE OF CERTIFICATES - SIGNING OF

9. (1) (a) A person who wishes to purchase a certificate should be requested to fill in the prescribed application form and sign it himself. This signature will serve in future as the specimen signature to establish the identity of the purchaser in all matters relating to the certificate. In the case of purchase in joint names the application must be signed by both the joint purchasers. Illiterate purchasers should affix their mark or thumb impression.

6

(b): Purchasers may be advised to have their father's name or in the case of married women, their husband's full name recorded on the application for purchase to facilitate subsequent identification.
(c): A purchaser who is unable to sign or affix his mark or thumb impression to the application for purchase may be permitted to present application signed by a literate proxy on his behalf.
(4): From 13.5.2005 the issue of NSCs (VIII-Issue) to HUF and Trusts and KVP to Trusts only has been discontinued. The certificates issued to these bodies before 13.5.2005 will continue till maturity and will not be extended further. The maturity value or pre-maturity value as the case may be of these certificates will be paid in accordance with the existing rules.

APPLICATION ON BEHALF OF MINORS

10. (1) When an application is received for the purchase of a certificate on behalf of a minor, the certificate should be issued in the name of the minor. The word 'Minor' and the date of birth should be added after the entry of the name in the certificate. The application should be signed by an adult purchasing the certificates on behalf of a minor.

(3): The authorisation made in accordance with para (2) will become ineffective on the death of the minor.

MODES OF PAYMENT FOR CERTIFICATES PURCHASED

11. (1) After the application is found in order, the Counter Assistant should accept the amount tendered. The serial number on the top of the application should be written prominently in RED INK. Payment for

purchase of a certificate may be made by Cash, Cheque, Pay-order, Demand Draft, Matured Certificates or a duly signed Post Office Savings Bank withdrawal form together with the pass book.

7

(2) The following procedure will be followed when payment is made by any means other than cash:

(a) Payment by means of Post Office Savings Bank withdrawal form :-Where payment is made by withdrawal from the POSB the investor will submit a withdrawal form duly signed. The signature on the application for withdrawal should be compared with the specimen on record and if it agrees, the warrant of payment for the SB withdrawal should be disposed of in the same manner as in the case of ordinary SB withdrawal. The investor will not be asked to sign the warrant of payment in token of receipt of the money withdrawn and it will be completed by the postmaster signing the pay order adding thereto the words "by transfer credit to Post Office Certificates". The amount should be shown as a withdrawal in the SB ledger,

L.O.T. and pass book, the remark "for purchase of................Certificates". "Application No..............." being made against the entries. The amount should be charged under the head "Saving Bank withdrawal" in the accounts of the Post Office by per contra credit to the appropriate head under Post Office Certificates.

(3) Payment by cheque :- (i) Payment may be made for purchase of certificate(s) by crossed or open local cheque drawn. The cheque should be drawn in favour of the Postmaster to whom the application is presented. The cheque drawn in favour of the Postmaster by the applicant must be endorsed on its back as “For issue of ………… Certificates in the name of …………………………. Signature of drawer. If the cheque is drawn in favour of the postmaster by a person other than the applicant, it must either be endorsed on the back of the cheque as "for issue of certificate(s) in favour of Shri/Smt.................. " or should be accompanied by a letter from the drawer of the cheque to the effect that certificate(s) be issued for its value in favour of the applicant, Shri/Smt...............................

The Postmaster will grant the applicant a preliminary receipt in Form NC-4(a) for the cheque. If the certificate is of the kind which will have the date of presentation of the cheque as date of issue, the certificate(s) should be made out in the same way as if the applicant has tendered cash but should not be made over to the purchaser until the cheque is actually encashed. After the cheque is encashed, the date of encashment should be recorded on the issue journal and the certificate(s) delivered to the purchaser on his surrendering the preliminary receipt which should be pasted to the application for purchase.

If the certificate(s) is such as can be issued only after encashment of the cheque, the certificate(s) will be made out only on encashment and it will bear the date of encashment as the date of issue. Delivery to the purchaser will be done as above. For this purpose the date of encashment would mean the date on which the proceeds of cheque/demand draft etc. are credited into Govt. account.

(ii) In SOs open cheques shall be cashed locally only if there is no clearing house or bank handling treasury business and if the cheques are drawn on a bank situated in the same place as the post office, otherwise it should be sent to the HO for clearance. In case of an open cheque, it should be crossed by the Postmaster before sending it to HO.

(iii) In Head Offices: -Open or Crossed Cheques drawn on local Banks either received direct at the HO or from SOs shall be collected through the Clearing House if there is one at the Station. If there is no clearing house or Bank handling treasury business, open cheques shall be collected locally and crossed cheques sent to the Bank performing treasury work duly entered in the treasury pass book as a cash remittance after endorsing it in favour of the Bank. On receiving credit for the amount, the postmaster will make a note against the entry in his Issue Journal or advise the SO to do so if the cheque was tendered at a

S.O.

(iv) Any commission charged by the Bank for realising the value of crossed cheque tendered by the post office, will be shown by the postmaster as expenditure under "other contingencies" and included in the contingent bill, the full amount of the cheque being credited in the accounts. Any charge for commission appearing in the "Not-payable monthly contingent bill" should be supported by Bank's memorandum showing the commission deducted.

(v) Demand drafts and Pay Orders should be treated in the same manner as cheques.

Note :-Procedure for accounting of cheques, etc., realised in payment for NSCs in Head and Sub Offices :- (1) NSCs VI/VII Issue Rules and NSCs VIII-Issue/KVP/IVP Rules, provide that where payment for Certificate is made by cheque, pay order or demand draft, the date of such Certificate will be the date of encashment of the cheque. The date of encashment would mean the date on which the proceeds of the cheque, etc. are credited into the Government account. The procedure prescribed for

8

clearance of SB cheques should be adopted mutatis mutandis for clearance of cheques in payment for NSCs. It is provided therein that where SB cheques, etc of Sub Offices are cleared by the concerned H.O., they are accounted for at the H.O. on their realization as part II deposits. Since there is no such provision for cheques. etc. for NSCs. the question has arisen as to how they should be accounted for. The following procedure is laid down in this behalf.

(a): The amount should be shown in red ink in the remarks column against the concerned sub-office as remittance received in advance (to be adjusted subsequently when accounted for in the sub-office).
(b): At the bottom of the Summary, the amount should be shown against the column ‘Advance received in the Head Office but not shown in the daily account of the remitting Sub Office'. The amount should be shown as part of the balance by deduction from the total outstanding balance of the sub-office.
(c): An intimation of encashment of the cheque, etc. should be sent to the concerned Sub Office on the same day, as in the Annexure.
(d): On receipt of the intimation of encashment of the cheque, etc. from the Head Office, the Sub Office will issue the NSC(s) and account for the value in its S.O. Account and Daily Account as under:
(e): On receipt of the daily account in the head office the amount will be accounted for in the sub office summary as under :

Receipt Side	Payment Side
Remittance received	Remittance to the
from sub Office	Treasury/Bank

Receipt Side	Payment Side
Purchase of NSCs (....... Issue)	Remittance to Head Office in advance by cheque encashed on............ by the Head Office.

SUB OFFICE SUMMARY

Receipt Side	Payment Side
Purchase of NSCs (....... Issue)	Remittance to Head Office

and the amount shown in red ink against the office in the remarks column will be cleared with corresponding adjustment in the balance at the bottom of the Summary on the day.

ANNEXURE Intimation of credit of cheques, etc. in payment for NSCs (……… Issue)

From	Postmaster	To	Sub Postmaster
	……………… No……………		……………………

Cheque No…………………… dated ……………… for Rs……………… drawn on ……………… bank received from your office on ……………… in payment for NSCs (………… Issue) was encashed on ………………………

Postmaster

9

(4): By surrender of matured certificates: -(i) A holder (or succesor in the case of deceased holder, whose claim has been entertained and sanctioned by the competent authority) may tender matured certificates accompanied by an application for purchase at any post office. The particulars of the certificates SQ tendered namely; Serial Nos. Denomination, the date and office of issue, name of the holder and date of maturity will be noted in the application for purchase. The signature of the applicant shall be obtained on the back of the certificate in token of discharge. The holder should write "through purchase of fresh certificate vide application attached" after the words 'Received payment of Rs...........Paise........(in words and figures)' on the reverse of the certificate where the matured certificate is tendered at the office of its issue or is accompanied by an identity slip, the postmaster after verifying the genuineness of the signature will issue fresh certificate of the series current on the date of maturity of the old certificate and of the denominations applied for equivalent to the aggregate value of the proceeds of the matured certificate. If certificate of the required denomination cannot be issued to cover the full matured value of the certificate, the residual amount will be paid in cash to the investor. Where reinvestment is desired at a post office other than the office of issue of the certificate and no identity slip is produced, the particulars of the certificate (and not the certificate) along with a specimen signature of the holder will be obtained from the holder and sent to the office of issue for verification. The investor will be given a probable date when he should present the certificate again for issue of fresh certificate. On receipt of report of verification, fresh certificate will be issued in the usual manner. The particulars of the fresh certificate issued in lieu thereof will then be intimated to the office of issue of the matured certificate, which in its turn will note down the date of encashment of the matured certificate on the relevant application and paste the intimation so received on the application.