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Contents GOVERNMENT SAVINGS PROMOTION ACT, 1873 PAGE
PRELIMINARY 1. Short title
1
2. [Omitted by the Finance Act, 2018, w.e.f. 1-4-2018]
2
3. Definitions
2
3A. Framing of Savings Schemes
4
3B. Deposit by minor
4
4. Nomination by depositor
5
4A. Payment on death of depositor
6
5. Payment to be a discharge
8
6. Security for due administration
9
7. Power to administer oath
10
7A. Power to call for information
10
8. Deposit when excluded in computing court fees
11
9. Act not to apply to deposits belonging to estates of European Soldiers or deserters
11
Deposits belonging to minors 10. Payment of deposits to minor or guardian
11
11. [Omitted by the Government Savings Banks (Amendment) Act, 1959, w.e.f. 18-9-1959]
12
Deposits belonging to Lunatics 12. Payment of deposits belonging to lunatics 12A. Operation of account by differently abled persons I-5
12 13
CONTENTS
I-6 PAGE
13. [Omitted by the Finance Act, 2018, w.e.f. 1-4-2018]
13
Miscellaneous 14. Protection of action taken in good faith 14A. Protection against attachement
14 14
15. Power to make rules
15
16. Repeal and savings
16
SCHEDULE
17
SUBJECT INDEX
19
PUBLIC PROVIDENT FUND SCHEME, 2019 1. Short title and commencement
21
2. Definitions
21
3. Limits of number of accounts
21
4. Limits of subscription
21
5. Manner of making deposit
22
6. Discontinuation of account
22
7. Interest
22
8. Loans
23
9. Repayment of loan and interest
23
10. Withdrawal from account
24
11. Closure of account or continuation of account without deposits after maturity
24
12. Extension of account with deposits after maturity
24
13. Premature closure of account
25
14. Closure of account on death of the account holder
26
15. Protection of credit balance from attachment
26
16. Application of General Rules
26
17. Power to relax
26
FORM 1: Application for opening an account
26
FORM 2: Application for Loan/Withdrawal
29
FORM 3: Application for closure of account
30
FORM 4: Application for extension of account
31
FORM 5: Application for premature closure of account
32
Government Savings Promotion Act, 1873 [5 OF 1873] [An Act to regulate and channelise the savings from general public into Government Savings Schemes.]
1
Preamble.— Whereas it is expedient to amend the law relating to the payment of deposits in Government Savings Banks; It is hereby enacted as follows:— PRELIMINARY Short title. 1. This Act may be called the Government Savings 2[Promotion] Act, 18733. Local extent.—It extends to 4[the whole of India 5[***]]. [***]
6
COMMENTS SECTION NOTES
1.1 Title of the Act u
The section officially designates the name of the legislation as the “Government Savings [Promotion] Act, 1873.”
1. Substituted for “An Act to amend the law relating to Government Savings Banks” by the Finance Act, 2018, w.e.f. 1-4-2018. 2. Substituted for “Banks” by the Finance Act, 2018, w.e.f. 1-4-2018. 3. Dated 28-1-1873. The Act has been extended to the Union territory of Goa, Daman and Diu vide Notification No. S.O. 2734, dated 1-9-1962, extended to and brought into force in Dadra and Nagar Haveli by Reg. 6 of 1963, w.e.f. 1-7-1965 and to the whole of the Union Territory of Lakshadweep by Reg. 8 of 1965, w.e.f. 1-10-1967. The Act came into force in Pondicherry on 1-10-1963 vide Reg. 7 of 1963. The Act has been extended to the State of Arunachal Pradesh by Act 44 of 1993. 4. Substituted for “all the Provinces of India” by the Adaptation of Laws Order, 1950. Prior to substitution, said words were amended by the Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948. 5. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir (Extension of Laws) Act, 1956, w.e.f. 1-11-1956. 6. Commencement clause omitted by the Repealing Act, 1874.
1
S. 3
GOVERNMENT SAVINGS PROMOTION ACT, 1873
2
1.2 Local Extent u
The section clarifies that the Act applies to “the whole of India”.
2. 7[***] [Definitions.
8
3. In this Act, unless the context otherwise requires,— (a) “account” means an account opened under any of the Savings Schemes; (b) “administrator” means an administrator as defined in clause (a) of section 2 of the Indian Succession Act, 1925 (39 of 1925); (c) “Authorised Officer” means— (i) in the case of a Post Office Savings Bank, an officer authorised by the Director General Posts; and (ii) in the case of State Bank of India or a banking company or any other company or institution, an officer so authorised by State Bank of India or that banking company or that other company or that institution, as the case may be; (d) “banking company” means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (e) “depositor” means an individual by whom, or on whose behalf money has been deposited in a Government Savings Bank and “deposit” means the money so deposited; (f) “executor” means an executor as defined in clause (c) of section 2 of the Indian Succession Act, 1925 (39 of 1925); (g) “Government Savings Bank” means— 7. Section 2 omitted by the Finance Act, 2018, w.e.f. 1-4-2018. Prior to its omission, said section as inserted by the Part B States (Laws) Act, 1951, read as under: “2. Act not to apply to deposits in Anchal Savings Bank.—This Act shall not apply to any deposits made in the Anchal Savings Banks of the State of Travancore-Cochin, and, notwithstanding anything contained in this Act, any law in force in the said State immediately before the commencement of the Part B States (Laws) Act, 1951 (3 of 1951) relating to such deposits, shall continue to apply thereto as if that law had not been repealed.” 8. Section 3 substituted by the Finance Act, 2018, w.e.f. 1-4-2018. Prior to its substitution, said section, as amended by the Amending Act, 1916, the Government Savings Banks (Amendment) Act, 1959, w.e.f. 18-9-1959, the Finance (No. 2) Act, 2004, w.e.f. 10-9-2004, the Finance Act 2005, w.e.f. 13-5-2005 and read as under : ‘3. Interpretation-clause.— In this Act— “depositor” means an individual by whom, or on whose behalf money has been heretofore, or shall be hereafter, deposited in a Government Savings Bank, and “deposit” means money so deposited. “Secretary” means, in the case of a Post Office Savings Bank, the Postmaster General appointed for the area in which the saving bank is situated, or if that area is in Pakistan, by the Postmaster-General for such area in India as the Central Government may by general or special order specify in this behalf. “minor” means a person who is not deemed to have attained his majority under the Indian Majority Act, 1875 (9 of 1875); “prescribed” means prescribed by rules made under this Act.’
3
GOVERNMENT SAVINGS PROMOTION ACT, 1873
S. 3
(i) a Post Office Savings Bank; or (ii) State Bank of India or a banking company, or any other company or institution, as the Central Government may, by notification in the Official Gazette, specify for the purposes of this Act; (h) “guardian”, in relation to a minor or a person of unsound mind means— (i) either of the parents; (ii) where neither parent is alive or where neither or the only living parent is incapable of acting as such, a person entitled under the law for the time being in force to have the care of the property of a minor or a person of unsound mind, as the case may be; (iii) legal guardian appointed by a court; (i) “minor” means a person who has not attained the age of majority under the Indian Majority Act, 1875 (9 of 1875); (j) “prescribed” means prescribed by rules made under this Act; (k) “Savings Schemes” means the Government Savings Schemes, including Savings Certificates and Public Provident Fund Scheme, listed in the Schedule; (l) “Schedule” means the Schedule annexed to this Act.] COMMENTS SECTION NOTES
3.1 Account [Section 3(a)] u
Refers to an account opened under any of the Government Savings Schemes.
3.2 Authorised Officer [Section 3(c)] u
Refers to: n
An officer authorised by the Director General Posts for Post Office Savings Banks.
n
An officer authorised by the State Bank of India, a banking company, or other specified companies or institutions.
3.3 Depositor and Deposit [Section 3(e)] u
A depositor is an individual who deposits or on whose behalf money is deposited in a Government Savings Bank.
u
Deposit refers to the money so deposited.
3.4 Government Savings Bank [Section 3(g)] u
Includes: n
Post Office Savings Banks.
n
State Bank of India, any banking company, or other companies or institutions notified by the Central Government for this Act.
3.5 Guardian [Section 3(h)] u
Defined in relation to a minor or person of unsound mind and includes: n
Either parent.
GOVERNMENT SAVINGS PROMOTION ACT 1873 WITH PUBLIC PROVIDENT FUND SCHEME 2019 – BARE ACT WITH SECTION NOTES AUTHOR : PUBLISHER : DATE OF PUBLICATION : EDITION : ISBN NO : NO. OF PAGES : BINDING TYPE :
Taxmann's Editorial Board Taxmann December 2025 2026 Edition 9789371260060 40 Paperback
Rs. 115 DESCRIPTION Government Savings Promotion Act 1873 with Public Provident Fund Scheme 2019 [Bare Act with Section Notes] by Taxmann is a concise and authoritative statutory publication covering one of India's most enduring and practically relevant financial legislations governing Government-backed savings instruments. The 2026 Edition presents the updated text of the Government Savings Promotion Act 1873, along with the complete Public Provident Fund Scheme 2019, supported by brief, section-wise editorial notes for ease of understanding and application. The publication reflects the post–Finance Act 2018 legal framework, under which the Act functions as the enabling law for major Government Savings Schemes such as PPF, National Savings Certificates, Sukanya Samriddhi Account, Senior Citizens' Savings Scheme, and other notified instruments. The law is up to date, ensuring accuracy and relevance. This book is intended for the following audience: • Legal Practitioners & Judicial Officers • Chartered Accountants, Tax Professionals & Financial Advisors • Banking & Post Office Officials • Students & Academicians • Policy Researchers & Government Officials The Present Publication is the 2026 Edition, covering the amended and updated text of the Government Savings Promotion Act [Act No. 5 of 1873] and Public Provident Fund Scheme 2019, with the following noteworthy features: • [Bare Act Text] Verbatim statutory text of the Act and the PPF Scheme for precise legal reference • [Updated with Amendments] Incorporates amendments made through recent Finance Acts and notifications • [Pre-amendment Provisions] Includes earlier versions of provisions in footnotes for comparative and transitional understanding • [Section Notes] Concise section-wise notes explaining definitions, scope, and practical implications • [Practical Forms & Schedules] Prescribed PPF forms covering account opening, loans, withdrawals, extensions, and closure • [Subject Index] Comprehensive index for quick and efficient navigation • [Easy Navigation & User-friendly Layout] Structured presentation with clear headings and logical sequencing
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