4. [ Nomination by depositor
. - [(1) The depositors shall designate one or more individuals, as nominee or nominees, who shall be entitled, in the event of the death of the depositor of a single account, or all the depositors of a joint account, as the case may be, to receive the sum due, as an owner or a trustee, and to the extent, as may be specified by the depositor at the time of making nomination:
Provided that if the depositor is a minor or a person of unsound mind, the nominee shall be designated by the guardian.]
(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 depositor.
(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 minority of the nominee.
(4)
[ The transfer of deposit, if permitted under a Savings Scheme, shall automatically cancel a nomination previously made.] [Inserted by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
4A. Payment on death of depositor .-(1) If a depositor dies and there is in force at the time of 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-
(a)
in any case where a person has been appointed to receive it under sub-section (3) of section 4, to that person; 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 the surviving nominee or nominees.
(3A)
[ Where the deposit belongs to a minor or to a person of unsound mind who dies and there is no nominee immediately before the date of commencement of Part I of Chapter VIII of the Finance Act, 2018, the deposit shall be paid to the guardian.]
(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 (39 of 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 [such limit as may be prescribed] [ Substituted by Act 56 of 1985, Section 2, for " five thousand rupees" (w.e.f. 4.9.1985).][, 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 in accordance with such procedure as may be prescribed.] [Substituted by Act 45 of 1959, Section 3, for Section 4 (w.e.f. 18.9.1959). ]
[***] [Omitted '(b)' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
[***]] [Omitted '(5) Nothing contained in this section shall be deemed to require any person to accept payment of a deposit, which is a time deposit, before it has become due.' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
5. Payment to be a discharge .- [Any payment made in accordance with the foregoing provisions of this Act] shall be a full discharge from all further liability in respect of the money so paid:
Saving of right of executor. - [Nothing] [Substituted 'But nothing' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.] herein contained precludes any executor or administrator, or other representative of the deceased, from recovering 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.
Saving of right of creditor. - [Every creditor] [Substituted 'And any creditor' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.] or claimant against the estate of the deceased may recover his debt or claim out of the money paid under this Act, [* * *] [ The words and figures " or Act No. 26 of 1855" omitted by Act 45 of 1959, Section 4 (w.e.f. 18.9.1959).] to any person, and remaining in his hands unadministered, in the same manner and to the same extent as [if that person had obtained] [Substituted 'if the latter had obtained' by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.] letters of administration of the estate of the deceased.
6. Security for due administration .-The Secretary of [a Government Savings Bank] may take such security as he thinks necessary from any person [to whom he pays any money under sub-section (4) of section 4-A ] [ Substituted by Act 45 of 1959, Section 5, for " to whom he pays any money under section 4" (w.e.f. 18.9.1959).] the due administration of the money so paid, and he may assign the said security to any person interested in such administration.
7. Power to administer oath .-For the purpose of ascertaining the right of the person claiming to be entitled as aforesaid, the Secretary of [a Government Savings Bank] may take evidence on oath or affirmation according to the law for the time being relating to oaths and affirmations.
Penalty for false statements .-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 of 1860).
7A. [ Power to call for information. [Inserted by Finance Act, 2018 (Act No. 13 of 2018), dated 29.3.2018.]
- The Central Government through any designated authority, may call for such information, documents and evidence as it may deem necessary, in relation to any account, for carrying out the purposes of this Act.]
8. Deposit when excluded in computing Court-fees .-Where the amount of the deposit belonging to the estate of a deceased depositor does not exceed [the prescribed limit] such amount shall be excluded in computing the fee chargeable, under the Court-fees Act, 1870 (7 of 1870), on the probate, or letters of administration, or certificate (if any), granted in respect of his property:
Provided that the person claiming such probate or letters or certificate shall exhibit to the Court authorised to grant the same a certificate of the amount of the deposit in any Government Savings Bank belonging to the estate of the deceased. Such certificate shall be signed by the Secretary of such Bank, and the Court shall receive it as evidence of the said amount.
9. Act not to apply to deposits belonging to estates of European soldiers or deserters .-[ Repealed by the Government Savings Banks (Amendment) Act, 1959 (45 of 1959), section 7 (w.e.f.18-9-1959).]