Deposit Scheme for Retiring Government Employees 1989

 
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GSR 598(E), DATED 7-6-1989

The Government of India hereby notifies the following Deposit Scheme with effect from 1st July, 1989, until further orders:--

1. Short title.

This Scheme may be called the Deposit Scheme for Retiring Government Employees, 1989.

2. Definitions.

In this Scheme, unless the context otherwise requires:

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

(b) "Accounts Office" means any branch of State Bank of India or its subsidiaries or any other nationalised banks, as may be authorised to accept deposits under the Scheme.

(c) "Depositor" means a retired Central or State Government employee by whom or on whose behalf money is deposited in an account and "deposit" means money so deposited.

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

(i) Balance at the credit of employee in any of the Government Provident Funds,

(ii) Retirement/Superannuation gratuity,

(iii) Commuted value of pension,

(iv) Cash equivalent of leave, and

(v) Savings element of Government insurance scheme payable to the employee on retirement.

3. 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 31st December, 1989, whichever is later (now 31st March, 1990 vide PIB Press Release, dated 13-3-1990), †for depositing the amounts not exceeding the total retirement benefits, by applying in Form 1, or as near thereto as possible, together with:--

(i) a locally executed 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,

an 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.

(b) On receipt of an application under sub-paragraph (a) above, the accounts office shall open an account 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) The 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 have been received on different dates, more than one deposit can be made in this account. Such deposits shall be made within three months from the date of receiving that retirement benefit from the Government.

4.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 the multiples of one thousand rupees.

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

(c) A depositor may, at his option, withdraw by applying in Form 3 or as near hereto as possible, the entire balance or part thereof after the expiry of three years from the date of deposit. Where a 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 the 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.

5. 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 the 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 on or after 1st January, 1999 shall carry interest at the rate of 9 per cent perannum:]

[Provided also that the deposits made in accordance with this Scheme on or after the 1 st day of March, 2001 shall carry interest at the rate of 8.5 per cent per annum:]

[Provided also that the deposits made in accordance with this Scheme on or after the 1st day of March, 2002 shall carry interest at the rate of 8.0 per cent per annum.]

(b) Where on expiry of three years, the account is continued the balance amount in the account will earn interest at the same rate till the account is closed:

Provided that where the account is continued on expiry of three years whether prior to 15th March, 1993, or at any time thereafter, the balance amount in such account shall...

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