Provided that the transfer of an account opened on behalf of a minor or a person of unsound mind shall not be permitted under this rule unless the guardian of the minor or the person of unsound mind, as the case may be, certifies in writing that the minor or the person of unsound mind, as the case may be, is alive and that the transfer is for the benefit of the minor or the person of unsound mind.

Note: - Transfer of National Savings Scheme Accounts as security to an individual, association, institution, private company, a body registered as a society under any law for the time being in force, a firm registered under the Indian Partnership Act, 1962 (9 of 1962) is not allowed.

(3) A depositor can pledge the whole balance in an account held by him, through post office where the account stands.

(4) The application for pledge should be presented by the depositor in the prescribed form. 

(5) When any account is transferred as security, the authorised officer shall make the following endorsement in the record of the Account, including Savings Certificate, namely: -

“Transferred as security to ....”.

(6) Except as otherwise provided in these rules, the transferee of an account under this rule shall, until it is transferred back, be deemed to be the depositor.

(7) The account / certificate pledged as security may be re transferred to the account holder on written authority of the pledgee. On receipt of such authority along with passbook, the entry “Transferred back to......” should be made in the passbook below the original entries of the transfer. The written authority should then be filed along with original application for pledging the account. No fee will be collected at the time of release of the pledge.

(8) A blind or a person with physical infirmity making him incapable of operating the account may pledge his/her deposit through any literate individual whom he authorises for this purpose.

(9) Pledging of an account can be done through Head Post Office. Sub Offices after collecting the pledge fee, have to forward the pledge application with due remarks to HO for pledging process.

(10) Once an account is pledged, the nomination registered in the account will be ineffective during the pledge period.

(11) When application for pledge is received in the Head Office, one Supervisor has to go to HAFSM menu and freeze the account(s) by selecting Freeze Code as Total and Freeze Reason Code as PLEDG. Enter name of authority in whose name certificate(s) is/are to be pledged. Another Supervisor has to verify this process.