TRANSFER/PLEDGE OF NATIONAL SAVINGS CERTIFICATE
As per SB Order No. 13/2019 and 4/2020, transfer of from date of receipt of SB order 13/2019 dated 18.12.2019, following rules shall apply for transfer of certificates from one holder to another:: (Rule 158(1):- Add sub rule (1A) below this sub rule:_)
An account may be transferred from one individual to another, subject to the condition that the
transferee is eligible to open an account under this scheme, in the following cases, namely:-
(i) on the death of account holder in case of a single account or on the death of all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees as the case may be.
(ii) on the order of the court, the account shall be transferred from the account holder to the court or to any other individual as per the orders of the court;
(iii) on pledging, account shall be transferred in accordance with paragraph 6;
(iv) in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holders, as the case may be.
Rule 159(6):- Add sub rule (7) below this sub rule:_
From date of receipt of SB order 13/2019 dated 18.12.2019, below rules shall apply for pledging of certificates:-
(i)An Account may be pledged or transferred as security, on an application made by the depositor in Form-3 supported with acceptance letter from the pledgee.
(ii) Transfer of an account under this paragraph may be made to_
(a) the President of India or the Governor of a State in his official capacity;
(b) the Reserve Bank of India or a scheduled Bank or a cooperative society, including a Cooperative Bank;
(c) a public or private corporation or a Government company;
(d) a local authority; or
(e) a housing finance company approved by the Nationar Housing Bank and notified by the
Central Government:
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.
(iii) when any account is transferred as security under sub-paragraph (1), the authorized officer shall make the following endorsement in the record of the Account, including the Savings Certificate, namely:-
"Transferred as security to .....,, .
(iv) Except as otherwise provided in this scheme, the transferee of an account under this paragraph shall, until it is transferred back under sub-paragraph (5), be deemed to be the depositor.
(v) An account transferred under this paragraph may, on written authority of the transferee, be re-transferred back with the previous sanction in writing of the authorized officer and when any
such retransfer is made, the authorized officer of the accounts office shall make the following endorsement in the record of the account, including Certificate, namely:_
"transferred back 1o......".
(vi) A blind or a person with physical infirmity making him incapable of operating the account may pledge his deposit through any literate individual whom he authorizes for this purpose.
Click here for SB Order No. 13/2019 and SB Order No. 4/2020
