Deposit Scheme for Retiring Employees of Public Sector Companies 1991


NOTIFICATION NO. 2/19/89-NS-II. DATED 12-12-1990

The Government of India hereby notifies following Deposit Scheme with effect from 1-1-1991 until further orders:--

2. Short title.

This Scheme may be called Deposit Scheme for Retiring Employees of Public Sector Companies, 1991,

3. Definition.

In this Scheme, unless the context otherwise requires,--

(a) "Account" means an account opened under this scheme.

(b) "Accounts Office" means any authorised branch of State Bank of India or its subsidiaries or any other nationalised banks.

(c) "Depositor" means a retired employee of Public Sector Company by whom or on whose behalf money is deposited in an account and deposit means money so deposited.

(d) "Public Sector Company" means any Corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956.

(e) "Retirement benefits" means any payment due to the depositor on account of his retirement whether on superannuation or otherwise and includes following payments:--

(i) Balance at the credit of employee in any of the Contributory Provident Funds, including employer's share.

(ii) Retirement/Superannuation gratuity. (iii) Cash equivalent of leave.

(iv) Savings element of Group Savings Linked Insurance Scheme payable by employer to the employee on retirement.

(v) Retirement-cum-withdrawal benefit under the Employees'Fam­ily Pension Scheme, 1971.

(vi) Commuted value of pension, if any, payable by the public sector company.

4.Opening of account.

(a) Any depositor may open an account with any accounts office within three months from the date of receiving the retirement benefits or up to 30-9-1991, whichever is later for depositing the amount not exceeding the total retirement benefits, by applying in Form 1, or as near thereto as possible together with:--

(i) a locally payable cheque, pay order or demand draft, for the amount of deposit, and

(ii) a certificate from the employer indicating retirement benefits:

Provided that a depositor who has received the retirement benefits before the notification of this Scheme, may open an account within six months from the date of commencement of the scheme:

Provided further that where the amount of deposit does not exceed Rs. 5 lakhs, and affidavit on stamped paper signed by the depositor indicating the amount of retirement benefits received by him shall be accepted in lieu of a certificate from the employer,

(iii) A certificate from employer that the company is Public Sector Company as per clause 3(d).

(b) On receipt of an application under sub-paragraph (a) above, the accounts office shall open an a'ccount in the name of depositor and issue him a provisional receipt.

(c) After realisation of the cheque, pay order or demand draft, as the case may be, a pass book in Form 2, shall be issued in exchange for the provisional receipt indicating the name of the depositor, his address, the amount of deposit(s) made, and account number, duly initialled by an authorised official of the accounts office.

(d) Date of realisation of the cheque, pay order or demand draft shall be the date of deposit and the deposit shall be deemed to be made on that date only.

(e) A depositor may open only one account under this scheme provided that where the retirement benefits shall have been received on different dates, more than one deposit can be made in this account. Such deposit shall be made within three months from the date of receiving that retirement benefit from the Public Sector Company.

5. Deposits and withdrawals.

(a) The account shall be opened with a deposit of a minimum of one thousand rupees, and all deposits will be in multiples of one thousand rupees.

(b) All withdrawals shall be in the multiples of one thousand rupees.

(c) A depositor may, at his option, withdraw by applying in Form 3 or as near thereto as possible, the entire balance or part thereof after the expiry of three years from the date of deposits. Where depositor elects to make part withdrawal, the balance amount will be held as a deposit in the account.

(d) The depositor may also make premature withdrawal of principal amount subject to the conditions specified in paragraph 7.

(e) There shall not be more than one withdrawal in respect of a deposit in a calendar year.

6. Interest on deposits.

(a) All deposits made in accordance with this scheme shall carry interest at the rate of 9% per annum from the date of respective deposits. The interest will be paid from the date of deposit to 30th June/31st December, as the case may be, and thereafter, interest will be paid half yearly on the 30th June and 31st December. The interest in fraction of a rupee will be rounded off to the next higher rupee:

Provided that the deposits made in accordance with this scheme on or after 15th March, 1993, shall carry interest at the rate of 10 per cent per annum:

[Provided Further that the deposits made in accordance with this Scheme...

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