A Case to Note

A formal case on the subject came up in January 2013 in Rajasthan State Commission and got a final verdict in National Commission in August 2015. The issue was primarily investment in National Savings Scheme (NSS). The depositor had opened two accounts at two different post offices despite knowing that one person could have only one account and was allowed to benefit only from ‘one’ scheme. The same facts are elaborated in Post Office Manual Vol. 1, Rule 156, which clearly states that an individual depositor can open only one NSS account.

Despite knowing the rules, Hanuman Prasad opened an account with Department of Post at Alwar head office by depositing Rs 5,000 in 1991. The complainant again deposited Rs 6,000 in the same year and another Rs 13,100 in 1992. At the time of maturity after 16 years, instead of paying 11 per cent interest, the post office paid a simple interest at 3.5 per cent (as payable in savings accounts). The department did this as it had discovered that the depositor had opened his first account under NSS in another post office at Arya Nagar in 1990 and hence opening of another account in a different post office was contrary to the rule.