The Government Savings Certificates Act, 1959 was enacted by Parliament on 10th year of Republic of India came into force on 1 August 1960 through gazetted notification. Central Government through notification applies to all the class of savings certificate. Section 2 defines the words holder, minor, prescribed, savings certificate, and transfer under the Act. Any transfer of Savings Certificate that has been made before or after this act commenced shall not be valid unless it has been done so by concerned authority in writing is explained under Section 3 of the Act. Savings Certificates can be held by a minor and any person can apply for such certificate on behalf of the minor. Any rules made under the act and any provisions of this act is applicable to all savings certificate that is held by a minor.
Section 5 states that when the Savings Certificate that is held by a minor matures on a due date then that amount can be paid personally to the minor itself if he had applied for the certificate. If a person other than a minor has applied for such certificate on behalf of a minor then that person or a guardian can take the amount under the act. If a person has been nominated by the holder of the Savings Certificate to receive the payment of the sum on the holder’s death and before certificate matures, then that nominee will be entitled to the savings certificate. The nominee will be paid the sum on due unless the nomination is cancelled in a prescribed way. If a nominee predecease the certificate holder then that nomination will become void. If the nominee is a minor then any guardian can receive the amount on its maturity if the nominator dies during minority of nominee. If savings certificate is transferred then nomination is cancelled automatically but if the certificate is held by a pledgee it shall not have any effect of on cancelling of the nomination.
Section 7 speaks about the payment of Savings Certificate to be made on the nominee up on the death of the holder. The sum due shall be made where the nominee is a minor to a person appointed to receive such amount and when no person is there then guardian of property of the minor can receive the amount. When there are 2 or more nominees and if one or either of them dies then the surviving nominee will get the amount from the certificate. No amount shall be paid to any person before the maturity of the savings certificate. Section 8 states that the payments given to a minor/parent/guardian according to the provisions of the Act shall be a full discharge of the sum so paid. The representative or executor of the deceased holder has to discharge the debts that are due in the amount received by the savings certificate. A creditor can claim his debt out of the amount paid under this Act. Section 9 states that if any amount is paid under the said Act the prescribed authority can provide security to whom the amount was paid.
The prescribed authority can take evidence on oath to ascertain the right of the person who is claiming the Savings Certificate under the Act. If that person makes false oath or provides false statement then he/she can be penalised under Section 193 of IPC. If any government officer acts in good faith under the Act he cannot be sued for his actions. The Central government can make rules by gazette notification to carry out the purpose of the Act. The rules that central government can make for carrying out the purpose of the Act can be related to maximum limits of holdings, transfer and conversion of savings certificates, fees to be levied, savings certificates replacement, form of nominations, cancellation of nominations, registration fees etc.
Section 13 explains about repeals and savings in the Act. It states that Post Office National Savings Certificates Ordinance 1944 has been repealed. Although the ordinance has been repealed any rules framed or actions taken under the said Ordinance will be considered to have been done under the above mentioned Act.