Deposits Made in N.S.C., N.S.S., U.T.I., Fixed Deposit in banks



GOVERNMENT OF TAMIL NADU
Personnel and Administrative
Reforms (A) Department,
Secretariat, Chennai-9.
Letter No.9546/A/97-1, dated 29.5.1997.
From
Thiru.K.A. NAMBIAR, IAS.,
Chief Secretary to Government.
To
All Secretaries to Government, Chennai-9.
All Departments of Secretariat (OP Sections), Chennai-9.
All Heads of Departments.
All Collectors, District Judges and Judicial Magistrates (Judicial)
The Registrar, High Court, Chennai-104.
The Secretary, Tamil Nadu Public Service Commission, Chennai-2.
The Registrar, Tamil Nadu Administrative Tribunal, Chennai-104.
Sir,
            Sub :      Tamil nadu Government Servants’ Conduct Rules, 1973 - Deposits
                         Made in N.S.C., N.S.S., U.T.I., fixed deposit in bank etc.-
                         Clarifications – Issued.
            Ref  :    1.Government Letter No.68618/89-2, Personnel & Administrative
                           Reforms (Per.A) Department, dated 28.9.89.
                        2.G.O.Ms.No.149, Personnel and Administrative Reforms (A)
                           Department, dated 15.3.96.
                        3.Letter No.2548/96/C2(369), dated 3.2.97 from the Additional
                           Registrar, High Court, Chennai.
In the Government letter first cited, it has been clarified that,-
(i)                 a member of the service should submit a report to the prescribed authority while taking an insurance policy if the annual premium of it exceeds Rs.5000/-.  However, if the annual premium first determined is less than Rs.5000/- but on conversion, it exceeds Rs.5000/-, a report to the prescribed authority is necessary at that stage.  When he receives the sum assured as survival benefit on maturity of the policy, he need not submit any report to the prescribed authority under rule 7(2) of the Tamil Nadu Government Servants’ Conduct Rules, 1973.
(ii)               a member of the service need not report to the prescribed authority while taking an insurance policy, the annual premium of which is less than Rs.5000/-.  He should however submit a report to the prescribed authority at the time of receiving the sum assured as survival benefit on maturity of the policy.
2.  A question has arisen whether in any of the Small Savings Schemes and fixed deposits in a bank by a Government servant require intimation to the Prescribed Authority.  The Additional Registrar, High Court, Madras in his letter third cited has also sought clarification whether the deposit made in N.S.S., N.S.C., U.T.I., CANPEP exceeding the value of Rs.5000/- have to be reported as per rule 7(2) of Tamil Nadu Government Servants’ Conduct Rules, 1973.
3.  After careful examination, the Government clarify the above points as follows :
(i)                 The transaction in any of the Small Savings Schemes and Fixed Deposits in a bank by a Government servant from out of his salary are exempted from the operation of the rule 6(4)(a) of the Tamil Nadu Government Servants’ Conduct Rules, 1973.  However, in regard to Fixed Deposit with banks, post office or with a public limited company of standing duly authorized to conduct banking business, a report should be made to the prescribed authority under rule 7(2) of the Tamil Nadu Government Servants’ Conduct Rules, 1973, if the monetary limit of Rs.5000/- laid down therein is exceeded.  The encashment of such Fixed Deposits on maturity need not be reported to the prescribed authority.  But, the day to day saving bank transaction either with a bank or with a post office would not come within the purview of rule 7(2) of the Tamil Nadu Government Servants’ Conduct Rules, 1973.  But, such items should be included in the assets and liabilities return submitted by the Government servants to the prescribed authority as per rule 7(3) of the Tamil Nadu Government Servants’ Conduct Rules, 1973.
(ii)               The purchase of N.S.S., N.S.C., U.T.I., etc. are investment of unspeculative nature involving practically no element of hazard.  Therefore, the purchase of N.S.S., N.S.C.,Units of U.T.I. etc. exceeding the monetary limits (now Rs.5000/- laid in rule 7(2) of the Tamil Nadu Government Servants’ Conduct Rules, 1973 shall be reported to the prescribed authority.  Encashment of such certificates however, is not required to be reported as this is not a separate transaction but is a consequence to the initial transaction of the purchase of these certificates.
4.  I am, directed to request you to bring the above clarifications to the notice of the subordinates under your administrative control for information and strict adherance.
                                                                                    Yours faithfully,
                                                                                    (Sd.)
                                                            for CHIEF SECRETARY TO GOVERNMENT.
Copy to :-
All Sections in Personnel and Administrative Reforms Department, Chennai-9.
All Officers in Personnel and Administrative Reforms Department, Chennai-9.
The Additional Registrar, High Court, Chennai-104.

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