 the government sa vings banks (amendment) bill, 1959(as introduced in lok sabha on 27th august, 1959)  the government savings banks (amendment) bill, 1959 (as introduced in lok sabha)a bill further to amend the government savings banks act, 1873 be it enacted by parliament in the tenth year of the republic of india as follows:--1 this act may be called the government savings banb short tide (amendment) act, 1959 5 2 in section 3 of the government savings banks act, 1873 (here- amendment in after referred to as the principal act), after the definition of of s«:tio(1 3· "minor", the following definition shall be inserted, namely:-'''prescribed'' means prescribed by rules made under this act' 3 for section 4 of the principal act, the following sections shall subltitutioa be b· ~~ 10 su stltuted, namely: -sections for t~ section " "4 (1) notwithstanding anything contained in any law for ~7ina~oll the time being in force, or in any disposition, whether testamen-y epol1tor tary or otherwise, by a depositor in respect of his deposit, where any nomination made in the prescribed manner purports to confer on any person the right to receive the deposit on the death of the depositor, the nominee shall, on the death of the depositor lecome entitled, to the exclusion of all other persons, to be paid the deposit, unless the nomination is varied or cancelled in the prescribed manner (2) any nomination referred to in sub-section (1) shall become void if the nominee predeceases, or where there are two or more nominees, all the nominees predecease, the depaitot' (3) where the nominee is a minor it shall be lawful for the depositor to appoint in the prescribed manner any person to receive the deposit in the event of his death during the minoritv of the nominee  -  4a (1) if a depositor dies and there is in force at the time 5 paymauod deatbof depoeitor ~f the death of the depositor a nomination in favour of any person, the deposit shall be paid to the nominee (2) where the nominee is a minor, the deposit shall be paid-(b) in any case where a person has been appointed to receive it under sub-section (3) of section 4, to that person; 10 and (b) where there is no such person, to the guardian of the minor for the use of the minor (3) where a deposit is payable to two or more nominees and either or any of them is dead, the deposit shall be paid to th~ is surviving nominee or nominees (4) if a depositor dies and there is no nomination in force at the time of his death and probate of his will or letters of administration of his estate or a succession certificate granted under the indian succession act, 1925, is not within three months ao "of ips of the death of the depositor produced to the secretary of thf' government savings bank in which the deposit is, then-(a) if the deposit does not exceed five thousand rupees, the secretary may pay the same to any person appearing to him to be entitled to receive it or to administer the estate of 25 the deceased; and  (b) within the afore&aid limit of five thousand rupees, any officer employed in the management of a government savings bank who is empowered in this behalf by a general or special order of the central government may, to the)o extent to which he is empowered by such order and subject to any general or special orders of the secretary in this behalf, pay the deposit to any person appearing to hitn to be entitled to receive it or to administer the estate (5) nothing contained in thie section shall be deemed to j~ require any person to accept payment of a deposit, which is ii time deposit, before it has become due" 4 in section 5 of th~ principal act,-ameodmeftt (a) for the words "such payment", the words "any pay- ofmcdon s ment made in accordance wi th the foregoing provisions of this act" shad be substituted: (b) the words and figures "or act no 26 of 1655" shall be omitted 10 5 in section 6 of the principal act,- ' amendmodt of ,ectlon 5 (a) for the words and figure "under section 4", the words, brackets and figures, "under sub-section (4) of section 4a" shall be substituted; (b) for the words and ftgure "to whom he pays any money under section 4", the words, brackets, and figures "to whom he pays any money under sub-section (4) of section 4a" shall be substituted is 6 in section 7 oi the principal act, for the words and figure amen f ~ent "under section 4", the words, brackets and figures "under sub-section o seetum 7 (4) of section 4a" shall be substituted 39 of 19:15 7 sections 9 and 11 of the principal act shall be omitted omission of sections 9 8ild ii s in section 13 of the principal act, for the words and figures ame~ent of seetion 3d "the indian succession act, 1865, section 4", the words and figures 13 "section 20 of the indian succession act, 1925" shall be substituted t for the heading "rules" and for section 14 of the principal act, subatitutioa of new the following heading and sections shall be substituted, namely: -,ectiona for , section 14 "miscellaneous as 14 no suit or other legal proceeding shall lie against the ~tectio~ of  action ta  eo secretary or any other officer of the government m respect of in aood anything which is in good faith done or intended to be done under faith this act 15 (1) the central government may, by notification in the power to official gazette, make rules for carrying out the purposes of this make ruin act (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-35 (a) the persons by whom and the terms and conditions subject to which deposits may be made in a government savings bank; (b) the maximwll limits of deposits and the condition8 as to interest or discount relating to deposits generally, or any class of deposits in particular; (c) the non-accrual of interest on deposits when the maximum limits are exceeded and the recovery of any s interest paid in excess in the same manner as an arrear of land revenue or in any other manner; (d) the persons to whom and the manner in which deposits may be paid; (e) the form of nominations, the manner in which, the 10 persons in whose favour and the conditions and restrictions subject to which, nominations may be made and the registration of nominations; <f> the variation or cancellation of nominations; (g) the fees that may be levied for registration of i ~ nominations and for variation or cancellation thereof; (h) the manner in which any person may be appointed for the purpose of sub-section (3) of section 4 (3) every rule made under this section shall be laid as soon as may be after it is made before each house of parliament 20 while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both houses agree in making any modification in the rule or both houses agree that the 2s rule should not be made, the rule shall thereafter have effect only in such modilied form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule"  statement of objects and reasonsunder section 4 of the government savings banks act, 1873, deposits in a government savings bank belonging to the estate of a deceased person are payable to his legal heirs on production of probate of his will or letters of administration of his estate or a succession certificate granted under the indian succession act, 1925; but if the deposit does not exceed rs 5,000 and any of the documents referred to above is not produced within a period of three months of the death of the depositor, payment can be made by the postal authorities to any person appearing to them to be entitled to receive it or to administer the estate of the deceased 2 suggestions have been made from time to time that, as the production of legal proof of succession involves considerable delay and expense, the depositors may be allowed the right to nominate a person or persons to receive the amounts due to the deceased depositors without the production of legal documents this bill, accordingly, seeks to allow nomination facilities to the depositors in the government savings bank by amending the savings banks act, 1873 new delhi; morarji r desai the 26th june 1959  memorandum regarding delegated legislationthe proposed section 15 sought to be inserted by clause 9 of the bill empowers the central government to mak~ rules for carrying out the purposes of the act· the particular matters in respect of which rules may be made are specified in sub-section (2) thereof these provisions would enable the central government to make rules relating mainly to matters of procedure, for example, the pers~ns by whom, and the terms and conditions subject to which, deposits may be made, the form of nominations, the registration, cancellation or change and the manner of payment of deposits under the act these are all matters of a routine nature and the delegation of legislative power is of a normal character - - - deposits belonging to the estates of deceased persona 4 if a depositor dies and probate of his will or letters of adminjs- paymedt 011 tration of his estate or a succession certificate granted under the ~=i~!r 39' 192, indian succession act, 1925, is not within three months of the death of the depositor produced to the secretary of the government savings bank in which the deposit is, then-(a) if the deposit does not exceed five thousand rupees, the secretary may pay the same to any person appearing to him to be entitled to receive it or to administer the estate of the deceased, and (b) within the aforesaid limit of five thousand rupees, ally officer employed in the management of a government savings bank who is empowered in this behalf by a general or special order of the central government may, to the extent to which he is empowered by such order and subject to any general or special orders of the secretary in this behalf, pay the deposit to any person appearing to him to be entitled to receive it or to administer the estate 5 such payment shall be a full discharge from all further liability paymcdt in respect of the money 60 paid: dt~_1c a j  u,c but nothing herein contained precludes any executor or adminis- savina of trator, or other representative of the deceased, from recovering ~~~~:r from the person receiving the same the amount remaining in his hands after deducting the amount of all debts or other demands lawfully paid or discharged by him in due course of administration and any creditor or claimant against the estate of the deceased savin,o( may recover his debt or claim out of the money paid under this act ~~~t~~ or act no 26 of 1855, to any person, and remaining in his hands unadr:1inistered, in the same manner and to the same extent as if the latter had obtained letters of administration of the estate of the deceased security for due administration 6 the secretary of any such ban k or any officer empowereci under section 4 may take such security as he thinks necessary from any person to whom he pays any money under section 4 for the due administration of the money so paid, and he may assign the said security to any person interested in such administration power to administer oath penalty for fall': statem:llts 7 for the purpose of ascertaining the right of the person claiming to be entitled as aforesaid, the secretary of any such bank or any officer empowered under section 4 may take evidence on oath or affirmation according to the law for the time being relating to oaths and affirmations any person who, upon such oath or affirmation, makes any statement which is false, and which he either knows or believes to be false or does not believe to be true, shall be deemed guilty of an offence under section 193 of the indian penal code 45 ol186o  - - - - 9 nothing hereinbefore contained applies to money belonging to the estate of any european officer, non-commissioned officer, or soldier dying in government service in india, or of any europe'an who, at the time of his death, was a deserter from the said service | act       | not    ||-----------|--------|| apply     |        || to        |        || deposits  |        || belonging |        || to        |        || estates   |        || of        |        || european  |        || aoldien   | or     || d~rteis |        |deposits belonging to minors - - - - 11 all payments of deposits heretofore made to minors or their guardians by any secretary of a government savings bank shall be deemed to have been made in accordance with law legalization of like payments heretofore made  deposits made by married women| paymel't    ||-------------|| married     || women',     || depolitll  |13 any deposit made by or on behalf of a married woman, or by or on behalf of a woman who afterwards marries, may be paid to her, whether or not the indian succession act, 1865, section 4, 10 of 1865 applies to her marriage; and her receipt for money paid to her under this section shall be a sufficient discharge therefor  rulesrules re-14 all certificates under section 8, and all payments under sojlating section 10, section 12 or section 13, shall be respectively granted and certi6cates under icc- made by the secretary of the bank, subject to such rules consistent tion 8, and with this act as the central government may, from time to time, payments  wlda'sections prescribe 10,12 oj '3  a billfurther to amend the government savings banks act, 1873 the president has, in pursuance of claus (i) of article ii? of the constitution of india, recommended to lok sabha, the introduction of the bill m n kaul, secretary (shri morarji desai, minister of fi"ance) 