Provident funds ‑ Amendment of Post Office Savings Bank Rules in compliance of the section - Companies Law - No. 8/418/56‑PR,

Circular : No. 8/418/56 ‑ PR, dated 26 ‑ 6 ‑ 1957. Subject:- Provident funds ‑ Amendment of Post Office Savings Bank Rules in compliance of the section The question of amendment of Post Office Savings Bank Rules to enable joint stock companies to comply with the provisions of section 418 has been under the consideration of the Central Government, for some time. The Director General, Posts Telegraphs has now issued instructions to all the Postmaster Generals that the notice of one month necessary in terms of rule 44(j) of the said Rules need not be insisted upon, if the funds permit. He has also issued instructions that provident fund moneys may be allowed to be withdrawn twice a week from the accounts at New Delhi and Delhi Head Post Offices and General Post Offices at Bombay, Calcutta and Madras and all Post Offices under the jurisdiction of these Head Post Offices and General Post Offices. The rules have also been amended to enable conjoint accounts to be operated upon by one or two trustees. It may be pointed out that there should have been no difficulty in withdrawing fractions of an anna as rule 44(1) of the Rules already allowed such withdrawals. This rule will be amended in due course, as a result of the introduction of decimal coinage system. The Director General has pointed out that securities can be placed with treasuries for safe custody. The question of collection of interest through Post Office Savings Bank is under consideration. As regards withdrawal of provident fund money, by cheques, the system is being tried in General Post Office, Bombay as an experimental measure and the position will be reviewed after a year. The system of deposit of moneys in P.O.S.B. by cheques will be introduced in General Post Office, Bombay from July 1, 1957.