(2). Transfer of an account under this paragraph may be made to 

(a) the President of India or the Governor of a State in his/her official capacity;

(b) the Reserve Bank of India or a Scheduled Bank or a Cooperative Society, including a Co-operative Bank;

(c) a public or private corporation or a Government company; 

(d) a local authority; or

(e) a housing finance company approved by the National 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 provision 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.

(3) (i). The whole balance in the account shall be pledged. A part of the balance cannot be pledged. The application for this transfer in the prescribed form should be presented by the depositor along with the pledge acceptance duly signed by competent authority as pledgee. When any account is transferred as security under this provision, the Postmaster shall make the following endorsement in the records of the Account, including the Savings Certificate schemes, namely:

“Transferred as security to .....” .

(ii). The application along with the Passbook when received at SOs, where there is a single supervisor should be sent to HO. In SOs with 2 Supervisors or at HO, one Supervisor should invoke menu HAFSM and select function code as FREEZE. Then select Freeze Code as TOTAL and Reason Code as PLEDGE. Then name of authority to whom the TD shall be pledged as security should be entered. Another Supervisor has to verify these entries in the Finacle CBS Application. The application for pledge should be preserved in a guard file in the office where this entry was made in Finacle CBS Application. Entry of FREEZE should be made in the Passbook.

(4). Except as otherwise provided in this scheme, the pledgee or transferee of an account under this provision shall, until it is re-transferred back, be deemed to be the depositor.

(5). An account transferred under this provision may, on written authority of the pledgee / transferee, be transferred back with the previous sanction in writing of the authorised officer and when any such retransfer is made, the Postmaster shall make the following endorsement in the record of the account, including Savings Certificate schemes, namely:

“transferred back to......”.

On receipt of such authority along with the Passbook, same procedure mentioned in Para (3)(b) above should be followed by selecting the function code UNFREEZE.

(6). 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.

Note 1: Branch Post Masters will forward the application for pledging the account and authority for retransfer to the account office as the case may be. 

Note 2: If a Time Deposit opened on behalf of a minor is transferred, the guardian of the minor is required to furnish the following certificate on the transfer application

“Certified that the minor is alive and the transfer is for the benefit of the minor.”

Note 3: Payment of interest on pledged Account

(i). In the absence of any special terms stipulated by the parties in the contract of pledge, the amount of interest accrued on the Post Office Time Deposit Account will be payable to the pledgee as the entire account has been pledged to him including the right to receive interest. If any interest becomes payable before the date of maturity and also before the date of pledge and there is no stipulation to the contrary, the interest will then be payable to the pledger and not to the pledgee. The interest payable to the pledgee which has not been drawn by him before the date of pledge will still be payable to him after the account has been pledged. Stipulation to the contrary, the interest will then be payable to the pledger and not to the pledgee. The interest payable to the investor which has not been drawn by him before the date of pledge will still be payable to him after the account has been pledged.

(ii). The outstanding annual interest (if any) shall be paid to the Depositor before pledging the account.