Standardised Agency System (SAS) Rules ~ India Posts' Retired Officers' Association

Standardised Agency System (SAS) Rules

(Issued vide Ministry of Finance (DEA) O.M. No. F1(53)/NS/57 dated 31.12.1959 and D.G.’s Special P.O. Circular No. 66 dated 4.3.1960 and further amended from time to time.)

1. Introduction :- Prior to 1.10.1960 various agency systems were introduced from time to time with an object of creating small savings workers on commission basis to approach various sections of the population in India to invest their savings in Government Securities. On 1.10.1960 various Agency Systems were rationalized by introducing one common agency system both for urban and rural areas. The new agency system is called as “Standardised Agency System.”

2. Scope of the Agency:- The agency at present is confined to canvass for the sale of Kisan Vikas Patras, National Savings Certificates (VIII-Issue), deposits in Time Deposits Accounts, Monthly Income Savings Accounts and Senior Citizens Savings Scheme Accounts. It may be extended to such other small savings securities as may be notified by the Government of India from time to time as being saleable through Authorized Agents.

3. Eligibility:- a) Adult individuals and EDBPMs will be eligible for appointment as authorized agents. An individual selected for appointment should be a person of substance having wide contacts and sufficiently educated to transact the agency business. He\She must be a person of integrity preferably owning some immovable property or well-known to the local authorities, Non-gazetted employees of the Central and State Governments are eligible for appointment as Internal Agents only on the recommendation of the head of the office concerned. Agency of such government officials will stand automatically terminated on their promotion to Gazetted post or on transfer to other office. The scope of Internal Agent so appointed will be limited to the staff of that office premises and their family members only.

Important Decision :- Discontinuance of appointment ofjuridical persons as SAS/MPKBY/PPF Agents- (1) The responsibility for appointment and renewal of small savings agents to promote the various small savings schemes issued by Government of India, vests with the State Governments. Instructions have been issued by the Government of India for appointment of agents under the Standardised Agency System, the Mahila Pradhan Kshetriya Bachat Yojna and the PPF Agency System. The existing instructions, inter alia, provide for the appointment of juridical persons like registered co-operative societies, scheduled Banks, registered social service organisations, universities, gram panchayats and institutions specially approved by the government as agents.

(2) Keeping in view the current strength of agents and the small savings mobilizations, it has been decided that fresh approvals for agencies to juridical persons may henceforth not be considered. Fresh approvals include extensions of existing agencies held by juridical persons on expiry of their tenure.

(3) The above changes may be given immediate effect.

[MOF (DEA) letter No. F.2/6/2005-NS.II dated 12.8.2005 addressed to all State/UT Governments]

b) Persons not eligible:- The agency shall not be granted to

i) Employees of the National Savings Institute

ii) Employees of the Department of Posts

iii) Central and State Government employees except when they are appointed as Internal Agents.

iv) Extra Departmental Employees of the Department of Posts other than Extra Departmental Branch Postmasters.

v) Near relatives of the employees of Departments of Posts and the National Savings Institutes whether gazetted or non gazetted. The term near relations includes wife/husband, legitimate child or step child, father/step father, mother/step mother, brother/step brother, sister/step sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law and daughter-in-law.

c) Near relatives of officials working in other Departments of the Central or State Union territory Government are, however, at present eligible for appointment as agents under Standardised Agency system. With a view to discouraging misuse of official position, it has been decided that in such cases, the appointment of agent may be made only if the Controlling Authority of the Government servant to whom the applicant is related has no objection to the appointment.

4. Application for appointment- An individual desirous of being appointed as authorized aget will make an application to the Appointing Authority in Form AAS-1 (Annexue-I). The solvency of the sureties will be verified by the Appointing Authorities concerned to their satisfaction. The verification should be completed as far as possible within a week of the receipt of the application.

5. Appointing Authority:- i) The authorized agents will be appointed by the officers authorized by the State Government ( Collector/ Deputy Commissioner of the District, Tehsildar and Block Development Officer or other gazette officers).

ii)The Appointing Authority will send an advice regarding appointment of agents and cancellation of certificates of Authority to the National Savings Institute regularly every month with a copy to the Head/Sub Postmaster concerned. The intimation of cancellation of agencies must always be sent to the Head Post Office concerned and to the post offices with which the agent is attached in Form AAS-7 (Annexure-3). The collector of the District will send consolidated statement in form AAS-8A (Annexure-4) to Directorate of the State Government every month.

iii) All appointments of agents shall be recorded serially in a register in Form AAS-9 (Annexure-5) district-wise in the office of the Appointing Authorities.

iv) A Certificate of Authority containing the specimen signature of the agent and a photograph of the agent (except in the case of agents who are exempted vide para 15) will be supplied by the Appointing Authority to the post office to which the agent is attached for the purposes of receiving receipt books. In case the agent is attached to a sub office, the Head Office will also be supplied a copy of certificate of authority containing the specimen signature for the purpose of purchase of certificates and opening of accounts only will not be supplied a copy of the Certificate of Authority. The Certificate of Authority should be kept carefully in a serially numbered guard file by the Head or Sub Postmaster.

Note-From 21.11.2002, the SAS agents will be appointed by the respective State Governments. They will also renew the agency of existing agents as and when due. The Regional Director/Deputy Regional Director, National Savings Institute will neither appoint new agents nor renew the agency of the existing agents after this date.

[N.S.C. Nagpur letter No. 12684-712/Tech/Agency/21-2/2002 dated 21.11.2002]

6. Security:- The security terms on which the agents are appointed under the Standardised Agency System and the value of the receipt books to be issued to them are as under;

i) Cash security of Rs. 5,000 or Bank Guarantee or a Fidelity Guarantee Policy with the General Insurance Corporation for an equivalent amount. The value of receipt books will be Rs. 1,00,000 plus two blank crossed cheques receipt books without any denomination.

ii) Cash security of Rs. 2,000 or a Fidelity Guarantee Policy with the G.I.C. for an equivalent amount of two sureties of Rs. 2,000 each or one surety of a bank for Rs. 4,000. The value of receipt books will be Rs. 50,000 plus two blank crossed cheques receipt books without any denomination.

iii) Cash security of Rs. 1,00 or a Fidelity Guarantee Policy with the G.I.C. for an equivalent amount or two sureties of Rs. 1,000 each or one surety of a bank for Rs. 2,000. The value of receipt books will be Rs. 20,000 plus two blank crossed cheques books without any denomination.

iv) Cash Security of Rs. 100. The value of receipt books will be Rs. 5,000.

Note- the Fidelity Guarantee Proposal form to be filled by the agent is given at annexure 7.

v) No security will be taken from members of the non-gazetted staff appointed as internal agents in Government Offices and other officials who have been specifically exempted from furnishing security by orders of the Government of India issued from time to time. The value of receipt books will be Rs. 5,000 plus one blank crossed cheque book without any denomination.

Note1- The security will be either in cash or in the form of Government securities. Personal sureties should be accepted only with the approval of the reserve Bank of India.

Note2- The Fidelity Guarantee Policy and Agency is to be renewed every three years by the Agent. A fresh F.G.P. should be obtained in time otherwise the agency will stand inoperative.

Note3- If the security is pledged by the agent in the shape of National Savings Certificates, the agent should apply for reinvestment after the maturity of the security.

Note 4- If a personal surety is given by the agent, he should give a certificate to the Appointing Authority on completion of every one year of the agency that the surety is alive.

7. Agreement:-

i) There will be two types of agreement, one for individuals furnishing personal sureties (Form ASS-3) (Annexure-8) and the other for all classes of agents who furnish security or for whom no security is prescribed (Form AAS-4) (Annexure-9). The agreement will be signed by the Appointing Authorities on behalf of the President. The agreement shall be initially for a period of three years and thereafter it may be renewed for further periods not exceeding three years at a time. The agreement provides for recovery of the amount due from an agent and his sureties in the same manner as an arrear of land revenue.

ii) In cases, in which an agent gives a bank as surety, it should be ensured that the agreements, etc. are signed by the person duly authorised to execute such documents on behalf of the bank.

iii) The agreements will be executed in duplicate. The original will be retained along with the pledged securities by the Appointing Authority and the duplicate by the agent himself/herself.

8. Deleted

9. Deleted

10. Stamp Duty- the Stamp Duty on the agreement will be payable by the Government.

11. Certificate of Authority- The agent will be issued one consolidated Certificate of Authority in the form (AAS-5) (Annexure-10) to individuals.

12. Renewal:-

i) The agency is valid for three years and can be renewed on completion of this period the agent should apply for renewal of his Agency to the Appointing Authority in the prescribed form AAS (1A) (Annexure-2) much in advance i.e. 45 days prior to the date of expiry of agency period. No commission shall be paid on business transacted after the expiry date if the agency is not renewed.

ii) Fresh certificate of Authority need not be issued to agents on the renewal of their agencies but instead the old certificate of authority should be suitably endorsed by the Appointing Authority by indicating therein the date upto which it has been renewed. A new Certificate of Authority, should, however, be issued in cases where the old Certificate of Authority with the agent is worn out and the Appointing Authority feels that it should not be advisable to merely renew the old Certificate of Authority.

13. Validity of the Certificate of Authority :- The Appointing Authority should ensure that the period of validity of the Certificate of Authority, the duration of which the Agreement is effective and the currency of the Fidelity Guarantee Policy are the same. The period of all these three documents must coincide. The same date as given in the preamble of the Agreement should be given in the Certificate of Authority against the printed item “Date of Certificate……………….”. At the bottom of Certificate of Authority against the printed word “Date” appearing below the printed word “Place” is different. The date in preamble of the agreement should in no case differ to that of date of commencement of the Fidelity Guarantee Policy.

14. Life Certificate of Sureties :- In the case of an agent furnishing personal sureties the Appointing Authority will obtain from him annually a certificate that the sureties are alive.

15. Affixing of photo on the Certificate of Authority:-

The requirement of affixing photo on the Certificate of Authority has been waived in the case of Government servants appointed as internal agents in offices, Extra Departmental Branch Postmasters and in the case of agents in rural areas where adequate facilities for photograph do not exist.
In case of an agent desiring to be attached to all Sub Post Offices under one particular Head Post Office except the Post Office to which the agent is attached for the purpose of drawing commission and obtaining receipt Books. The other Sub Post Offices will identify the agent be reference to his specimen signature on the counterfoil of the certificate of authority in his possession which should invariably be shown to the post office official at the time of each transaction. The copy of the Certificate of Authority to be sent to the post office to which the agent is attached for the purpose of receiving Receipt Books and obtaining commission will bear the specimen signature and the photograph of the agent.

16. Extra Departmental Branch Postmaster Agents:- They will be appointed as agents by the State Government Authorities. They will be paid commission at source at the time of deposit of money like other agents. The Branch Postmaster will receive payment from the cash balance of his office and sent the voucher to the Sub/Head Post Office in support of the charge.

17. Deleted

18. Minimum Guarantee of Business:- There will be no condition regarding minimum guaranteed business under the Standardised Agency System but inactive agents will be weeded out after periodical reviews. The Agreement of inactive agents and of agents whose sureties do not continue to be solvent and are otherwise unacceptable will not be renewed.

19. Field of operation:-

The Agent is allowed to canvass investment throughout the State in which he is appointed. He can be attached to one or all the post offices under the same head post office for effecting transactions but receiving receipt books he can be attached to any one sub office or head office.

Note:-The agent is allowed to canvass business only in the State in which he is appointed. This restriction will not, however, preclude (prevent) him from purchasing certificates or opening of accounts on behalf of an investor whose permanent address as given in the application is outside the jurisdiction of the state of the issuing post office to which he is attached.

The above concession will not, however apply to government servants appointed as internal agents whose scope will be limited to canvassing amongst employees who are either working or have retired from the same office and their family members. They may also be allowed to canvass the staff of other neighbouring offices provided

No similar agent is functioning in such offices
The administrative heads of such offices agree to the agents of other offices functioning in their offices
The administrative heads of offices in which such agents are employed agree to their working in other offices. The agents will, however, continue to be attached for transaction of business to one post office only.

With a view to ensure that investments have been secured by the Government Servant appointed as internal agent from persons of eligible categories only, the checking authorities should obtain a certificate from the Government employee on the counterfoil of the receipt that the applicant is a member of the family indicating his/her relationship to him

Note- The term ‘family’ will include the employee’s wife, legitimate children, step children, parents, sisters and minor brothers if residing and wholly dependent upon the employee.

Important Instructions

1. Attachment of SAS agents to Sub Post Offices :- Please refer to the copy (reproduced below) of letter No. 17512-98/Dev. 1/23-4/86-I dated 4^th July, 1988 from the National Savings Commissioner, Nagpur regarding attachment of SAS agents to sub post offices. The instructions contained therein may be brought to the notice of all Superintendents of Post Offices/ Post Masters and other concerned authorities under your control so as to ensure that there is no concentration of agents at the head Post Offices alone. For this purpose, the Divisional Superintendents may obtain the details of SAS agents attached to the Head Offices and Sub Offices under their division and may propose to the concerned Regional Director, national Savings Institute (now Director, Small Savings of State Government) reallocation of agents in an even number so that there is no unnecessary concentration of agents either at the Head Offices or at the Sub Post Offices.

[D.G. Posts letter No. 62-4/88-SB dated 1.8.1998]

[Copy of the National Savings Commissioner, Nagpur Letter No. 17512-98/Dev. 1/23-4/86-I dated 4.7.1988 addressed to all Secretaries of State Governments and Regional Directors, National Savings Institute.]

Subject: Attachment of SAS Agents to Sub Post Offices:-

It has been brought to our notice by Department of Posts, new Delhi that a large number of agents are attached to head Offices as result the Head Offices remain crowded by the agents. It has further been suggested that more agents may be attached to Sub offices to relieve the head Offices from crowd and rush of work.
At present, SAS agents are attached to one or all the sub offices under the Head Office for effecting transactions but for receiving receipt Books they are attached to any one Sub Office or Head Office.
You are requested to issue suitable instructions to all the Appointing Authorities authorised by you to attach more agents to Sub Offices instead of Head Offices.

2. Attachment of SAS agents to more than one Head Post Offices:- I am directed to say that para 19 of this Department’s O.M. No. 1(13) NS/57 dated 31.12.1959 as amended from time to time regarding Standardised Agency System provides that in large cities, where there are more than one Head Post Office, an agent can be attached to all sub-offices under all the Head Offices to effect transactions. The position has been reviewed and it has now been decided that in future, a SAS agent will be attached to sub-offices falling under the jurisdiction of a particular Head Post Office only. This would be applicable to the agents appointed after the date of issue of these instructions. However, the cases of the existing agents change in their case within a period of six months from the date of issue of this letter.

[MOF(DEA) letter NO. 1/20/90/NS.II dated 28.10.1991 and D.G. Posts Letter No. 62-9/89-SB dated 20.11.1991]

3. Congregation of SAS/MPKBY Agents in Post Offices:-

1. Instances have come to the notice where SAS/MPKBY agents are seen congregating in the post offices soliciting business from the public who approach the post office directly for investment. This practice is against the rules.

2. The Small savings agent is expected to make contact with customers at their residence/ office etc. to explain to them the advantages of savings instruments and secure business by motivating them for investment. The very purpose of their appointment is defeated if they grab the ready business from the public coming to post offices for investment directly at the counter. The agents should not sit in post offices for canvassing business.

3. In this regard, instructions have been issued from time to time. You are requested to reiterate these instructions to all Postmasters once again and impress upon them to take necessary steps to avoid such congregation of small savings agents in the post offices.

4. A close watch may be kept over this issue and during visits by officers and agents if found operating in the public area soliciting business form customers who are anyway attending post office for investment, should be immediately reported to their Appointing Authority for adverse notice as they are not following the letter and spirit of their appointment.

[D.G. Posts letter No. 107-1/2006-SB dated 31.3.2006]

20. Supply of receipt Books to Agents:-

The Receipt books will be supplied to the agents by the post office to which they are attached for this purpose. The receipt of the agents will be obtained in the Stock Register of the post office. Each receipt will be machine numbered and will be with the counterfoil. The foil of the receipt will be issued by the agent to the investor which will be taken back from him duly signed after the pass book or certificates are delivered to him. The receipt books will be in the following denominations:-

The receipt books are printed in the following three types viz.
Not above Rs. 1,000
Not above Rs.5000 and
Not above Rs. 10,000.
The crossed cheque receipt books are without denomination. The column of the amount is left blank.
The agents will use ‘crossed cheques receipt books’ only when crossed cheques are tendered by investors. They cannot convert cheque receipt books into cash receipt books unless specified by the post office.
The agents will be given the choice to select the denominations of receipt books, and how many of each denomination they would like to have, subject to the condition that the overall maximum limit prescribed is not exceeded.
The total value of the receipt books of all denominations issued to an agent will not exceed the total value specified in the Certificate of Authority.

[D.G. Post letter No. 107/2002-SB dated 21.11.2003]

Note 1- In the event of loss of receipt book the agent should report the loss to the Post Office. Appointing Authority and the Regional Director, National Savings concerned immediately. Also notify the loss of C.A. at least in one local newspaper.

Note2- if any receipt in the receipt book of an agent is cancelled by him for any reason, the foil of the receipt will be destroyed by the Postmaster/ Sub Postmaster himself after recording a remark about the cancellation of the receipt under his dated signature on the counterfoil of the receipt.

Note 3- The receipt book will be issued in Form AAS-11 (Annexure-11)

IMPORTANT ORDERS ON RECEIPT BOOKS

1. Deleted

2. Supply of excess Receipt Books to SAS Agents:- It has been reported y the MOD(DEA), Government of India, New Delhi that by some Post offices, AAR Books were supplied to an agent in excess of the maximum limit prescribed and the agent mis-appropriated the amount. To obviate occurrence of such lapses you are requested to issue necessary instructions to all post offices under you that limits on the values of receipts books as prescribed in the administrative instructions are strictly adhered to by the post offices who issue the AAR books to the agents. Any disregard to these instructions may be viewed seriously.

[D.G. Posts letter No. 93-2/88-SB dated 3.4.1989]

3. Enhancement of denomination of Cash receipt Books for SAS Agents:-

At present, Agents receipt Books (AAR Books) under Standardised Agency System are got printed by the National Savings Institute in the denomination of not above Rs. 100/-, Rs. 1000/- and Rs. 5,000/- respectively. The matter of enhancement of denomination limit of Cash Receipt Books for SAS Agents was under consideration in the Ministry of Finance for some time. The ministry of Finance (DEA) vide their letter No. 1/15/2000-NS-II dated 12.11.2003 has decided to enhance the denomination of Cash Receipt Books not above Rs. 1000/-, Rs. 5000/- and Rs. 10,0000 respectively subject to the maximum cash handling limit of Rs. 50,000 at a time by Authorised Agents.
You are requested that the requirement of printing of receipt books may be reviewed and indented accordingly.
This change in denomination of cash receipt books be brought to the notice of all concerned for guidance and compliance.

[D.G. Posts letter No. 107-7/2002-SB dated 21.11. 2003]

Cheques to be drawn in favour of the Postmaster:- It has been noticed in some cases that the investor has issued cheques in the name of the agents. The existing instructions envisage issue of cheques by investor in favour of the Postmaster. In order to avoid such lapse, it has been decided that in the cross cheque receipt book, it may be printed on each page for information of investors that the cheque should be issued in favour of Postmaster and not in favour of the agent. You are, therefore, requested to take necessary action when next printing of the cross-cheque receipt books is taken-up.

[MOF(DEA) letter No. F.3/18/87-NS-II dated 2.3. 1989 addressed to NSC Nagpur and copy to D.G. Posts]

Issue of receipt books to SAS Agents:-

1. I am directed to refer to this Ministry’s letter No. F.1 (53)- NS/57 dated 31. 112.1949 on the subject cited above and to state that the existing system of allowing agents to accept cash from investors has been further reviewed. In supersession of this ministry’s letter N. F.3/37/91-NS-II dated 16.8.1993, it has now been decided that the maximum limit of cash receipt books to be issued to Small Saving Agents will henceforth be Rs. 50,000 at a time. There will, however, be no restriction for accepting cash from a single investor subject to the maximum limit of Rs. 50,000/- at a time. There is no change in so far as issue of cheque receipt books is concerned.
2. It is reiterated that the agents shall never, under any circumstances exceed the amount up to which a receipt form is valid for an investment or investments and they shall not make any alteration in the matter printed on the receipt form and counterfoil.
3. The Appointing Authorities will check the antecedents of the agents before their appointment. In case where the Appointing Authority is an Officer authorised by a State Government, that State Government will appoint Supervisory Authority whose duties include checking of receipt books on demand and to report the irregularity, if any, to the Appointing Authority. In the event of any misappropriation of investor’s money by an agent appointed by an Appointing Authority authorised by a State Government, that State Government will bear the loss.
4. It is requested that necessary instructions may be issued accordingly to all concerned. It may be ensured that the existing instructions relating to maintenance of the agents register etc. and other instructions issued by the Ministry from time to time are strictly followed by the Post Offices.

[MOF(DEA) letter No. F.3/37/91-NS.II dated 8.11.1993 and D.G. Post Letter No. 61-12/92-SB (Pt.) dated 16.11.1993]

6. Supply of receipt books to SAS Agents:-

Some of the Circles have reported that SAS Agents have secured business exceeding the prescribed limit of Rs. 50,000 in a day by cash by obtaining excess receipt books fraudulently from the Post Office. This matter has been examined in consultation with Ministry of Finance (DEA) and it has been decided that strong action should be taken against the erring agent as well as postal officials in charge issuing receipt books to the agents. The maximum limit of cash receipt books to be issued to SAS agents and also the limit of cash handled by him at a time is Rs. 50,000 uniformly in the country.
The Head and Sub Offices will maintain a stock register of receipt books. Whenever a receipt book is supplied to the agent, his receipt will be obtained in the stock register. Each receipt will be machine numbered and will be with the counterfoil. The foil of the receipt will be issued by the agent to the investor which will be taken back from him duly signed after the certificates are delivered to him. All the rules regarding stocking, supply, checking and other matters as applicable to certificates will be applicable to receipt books and the amount so collected have been deposited in the post office.
Whenever a new receipt book is supplied to an agent, the Postmaster will ensure that the authorised limit of Rs. 50,000 is not exceeded. The Postmaster will also ensure from the counterfoils of the used receipt books and the amount so collected have been deposited in the post office.
It is requested that necessary instructions may be issued accordingly to all concerned.

[D.G. letter No. 107-24/96-SB-III dated 26.8.1998 and MOF(DEA) No. F.1/4/97-NS.II dated 20.7.1998]

7. Supply of receipt books to SAS Agents:-

1. Kindly refer to this office letter of even number dated 26.8.1998 (Para6) on the subject cited above. Some Circles have misconstrued the wordings of para 1 of that letter. This has been reported by the SAS Agents from some Circles. In this connection, the clarification on this aspect is given below.
2. The maximum limit of cash receipt books to be issued to the agent is Rs. 50,000 at a time and not in a day. If the receipt books re consumed and the cash is deposited in the post office, the agent can obtain again the receipt books on the same dat. In other words, he can obtain receipt books on more than one occasion on the same day. The idea is that he should not retain cash more than Rs. 50,000 with him at a time.
3. It is requested that necessary instructions may be issued accordingly to all concerned.

[D.G. Post Letter No. 107-24/96-SB dated 24.11.1998]

21. Commission:- The agent shall be entitled to receive a commission of such rates as may be notified by the Government from time to time in respect of each of the securities sold through him under the terms of the agreement executed by him. The rates of commission admissible to authorised agents as fixed from 1.1.2000/2.8.2004 for SCSS by the Government are (on current schemes) furnished below for information.

S.no.

Name of securities

Rate of commission

ii)

iii)

iv)

1/2/3/5-year Time Deposits

Monthly Income Account Scheme

Kisan Vikas Patras

6-Year national Savings Certificates(VIII-issue)

Senior Citizens Savings Scheme

0.5%

MOF(DEA) Notification No. F.18/5/99-NS dated 1.1.2000 and No. 2-8/2004-NS-II dated 2.8.2004]

22. Investment on which commission is not payable to agents:-

1. On scale of certificates representing investment of Provident Superannuation, Gratuity and endowment Fund money, funds of co-operative societies including co-operative banks, compensation money paid to displaced persons in the form of Savings Certificates, court funds, funds in the control of Government Officers or local statutory authorities or conversion to certificates of cash securities already pledged to Government Officers by contractors, etc., or investments required to be made in Small Savings Securities under any statute or by an express order of the Government, investments made by Institutions, trusts, Companies, Associations etc. or such other investment as may be notified by the Government in this behalf from time to time.
2. On holding invested in excess of the prescribed limit. If any commission is found paid to the authorised agent on the excess holdings, it should be recovered.
3. Where a redeposit of a matured Time Deposit is made under sub rule (3) of rule 6 of the Post Office time Deposit Rules, 1981 retrospectively from the date of maturity. The commission will, however, be payable in case of redeposit made under rule 6(1) of the Post Office time Deposit Rules, 1981.

[Rule 17 of P.O.S.B Manual Volume II and D.G. Post letter No. 63-7/83-SB dated 27.7.1983]

23. Time limit for transactions:- All transactions must be handled promptly and completed expeditiously by the agents. The maximum time allowed is as follows:-

Deposit of money in the post office:- 10 days from the date of receipt of money from the investor.
Delivery of Certificates/Pass Book to the investor:- 30 days from the date of receipt of money.

Note- The authorised agents will be required to show under their signature on the top of application form for purchase of National Savings Certificates/KVPs and for opening of TD/MIS/SCSS accounts the date of presentation of the application at the post office.

24. Termination of Agency:-

When an agency is terminated or an agent dies, the Appointing Authority will send intimation under registered post to the post office to which the agent was accredited with a copy to the head office if the agent is accredited to a sub office. In the order terminating the agency, the Appointing Authority will specify the date by which the unused and partially used up receipt books should be returned to the post office.
The agent shall deposit the amount of investment lying with him un-deposited and return the partially used and unused receipt books forthwith to the post office concerned. Non-compliance of this rule by the authorised agent by date fixed by the Appointing Authority in the order terminating the agency shall be reported to the Appointing Authority by the post office.
The used up receipt books containing only agent’s copies of receipt need not be obtained from the agents on the termination of their agency. The unused receipt books after surrender by the agent(s) to the post office will be brought again on the stock register and issued to other authorised agents for their use.

24A. Misappropriation of Investor’s money by the agents:- In case of misappropriation of Investors’ money by the agent, the Appointing Authorities concerned should deal with the matter and take suo moto prompt action in the matter and should see that the investigation of the cases are not delayed at any circumstances. It is the duty of the Appointing Authority to obtain information, ascertain the extent of such misappropriation, locate the defrauded investors, realize the losses from the agents and/or their sureties and should also take steps for issue/ antedated of certificates, etc.

24B. Acting of SAS/MPKBY/PPF agents as an agent or messenger for withdrawal of money:- These agents cannot act as an agent or messenger of the depositor for the purpose of withdrawal of money from his/her account in various savings schemes.

25. Loss of Certificate or Receipt Book by the agent:- On receipt of information of the loss of Certificate of Authority or Receipt Book from the agent, the Appointing Authority or the Head Post Office, as the case may be, should forthwith intimate the loss to offices with which the agent is registered for transacting Security business. The loss must invariably be notified in the State gazette and at the cost of the agent, in local Newspapers, besides putting up a notice on the notice board, if any. The agent shall also execute an Indemnity Bond (Annexure 12 and 13) indemnifying the Government against any loss. The stamp duty on such bond will be payable by the agent and should be based on the value of receipt Books lost or the total value of Receipt Books permissible to the agent in the case of the loss of certificate of Authority.

26. Forms- The supply of Agreement and other forms in English will be arranged by the National Savings Institute through the regional Director, National Savings Institute of the State. However, the State Government can also print in regional languages with the rider that in case of doubt, the English version alone will be treated as authentic.

27. Deposits receiving Authority:-

i) For the purpose of purchasing National Savings Certificate, the deposits of money in respect of Time Deposit and other accounts the agent will be allowed to be attached to all Sub Offices falling under the jurisdiction of one particular Head Post Office. The Certificate of Authority to be issued to an agent may mention either the names of the post offices to which he is attached for purchase of above certificates etc. or merely say “all Sub Offices under Head Post Office”. A copy of certificate of Authority need not be sent to any sub office except the office to which the agent is attached for purpose of drawing commission and obtaining Receipt Books i.e. Issuing Authority and the copy of the Certificate of Authority to be sent to this post office will bear the specimen signature and photograph of the agent.

ii) Issuing Authority:- Issuing Authority will be the Post Office. For the purpose of obtaining receipt Books, the agent will be attached to one post office only.

iii) Checking and Paying Authorities:- The checking and paying authorities in respect of Savings Certificates, Time Deposits etc. will be post office.

iv) Supervising Authorities:- The field officers of the National Savings Institute, Government of India, such as regional director/Deputy regional Director, National Savings/District Savings Officer and such other field officers nominated by the State Government from their own Directorate. (The term “Supervising Authority” involves checking of receipt Books on demand and to report the irregularity, if any, to the Appointing Authority.)

28. Transfer of agents from one place to another:- The procedure to be followed by the Appointing Authority in case of transfer agents from one place to another is as under:-

Type of transfer

Procedure to be followed

ii)

iii)

iv)

Transfer to a place outside the state in which the agent has been appointed.

Transfer from one Tehsil to another Tehsil involving change of the Appointing Authority but not change in the Head Post Office.

Transfer to a place outside the jurisdiction of the head post office but within the area of same Appointing Authority.

Transfer involving change of both the Appointing Authority and the head post office but not involving a change of the state.

Since it is the transfer to another state, the agent should be required to execute a fresh agreement with the Appointing Authority of the State to which he is transferred.

The agent may be allowed to continue to work without any change but he should be required to register his new address with the Appointing Authority and also with the D.S.O. of N.S.O. and State Government at the District level.

The agent’s name may only be transferred from the rolls of previous head post office to the new head post office on the advice from the Appointing Authority and the change in address of the agent may be recorded with the Appointing Authority and the field officers of N.S.O or State Government at the local level concerned.

The Appointing Authority on a request from the agent for transfer may send necessary advice to the head post office and the Appointing Authority of the area of which the agent is transferred. The agreement and the other papers concerning the agent transferred to another District/ City may remain with the authority who issued the Certificate of Authority in the first instance. The Appointment Authority in his register of agents may make an entry to the effect that the agent has been transferred from such place by such and such authority.

Note- In the case of items (i) and (iv) above, the Head Post Office or the Sub Post Office to which the agent was attached should call for the unused receipts and receipt books and after varying them intimate to the new Head Post Office or Sub Post Office the particulars of unused receipts and receipt books and send copy of his Certificate of Authority containing his photograph.

29. Nomination of messenger on behalf of the agent:- The Appointing Authority may on the written request of an agent permit him to nominate one messenger to transact business with the post office on his behalf. This facility will be given only to those agents whose annual turnover is sufficiently large. Supplementary Agreement (Annexure 15) indemnifying the Government against any loss as a result of this messenger transacting business with the post office on his behalf. The supplementary agreement to be signed by the agent should also be signed by the same individual sureties as have signed the Principal Agreement. The Appointing Authority should also send to the post office concerned a copy of the authorisation letter, a specimen signature of the messenger, his photograph which should be kept as a record in the post office along with the Certificate of Authority of the agent.

30. Returns:-

i) The Appointing Authority will send necessary intimation in form AAS-7 (Annexure 6) regarding new agents appointed or termination of agencies regularly to the District concerned with a copy to the Collector of the area who will maintain their register of agents up-to-date. The intimation of cancellation of agencies must always be sent to the Head Post Office concerned and also to other post offices with which the agent has been allowed to transact business.

ii) The Paying Authority i.e. Head Post Office will send by the 10^th of the following month a consolidated monthly return of commission paid by all Paying Officers in form AAS-8 (Annexure-9) to the Director, Small Savings of his area. The Paying Authorities should also intimate regarding the collection made by the agents.

iii) The agents must submit a return every month to the respective District Small Savings Officer of the area regarding investments secured by them and commission drawn thereon.

Supplementary Instructions

1. Commission on certificates pledged as security:- A question has been raised whether the authorised agents are entitled to commission for the sale of N.S.Cs. required to be pledged as security to Government offices and other statutory authorities. The matter was referred to the Ministry of Finance (DEA) who held the view that the earning of commission by agents on certificates purchased through them immediately before they were pledged as security cannot be termed as irregular and as such the commission cannot be denied to the authorised agents on such transactions.

[D.G. Posts letter No. 3-7/73-SS dated 16.8.1975]

2. Reinvestment of matured Certificates/Deposits through agents:-

1. The investors can reinvest their matured securities (certificates/deposits) through the agents. The agents will be entitled to the commission for such investments. For this purpose, the agent will obtain pass book along with withdrawal form duly completed and signed or matured certificates duly signed on the back by the investor. The depositor/investor will write on the application form (SB-3) or application for purchase of certificate under his signature that the matured deposit/certificates are being reinvested through the agent…….(name of agent and C.A. Number. Since handling of cash is nto involved in such cases, the agent will issue receipt of the documents from the cheque book with suitable remark and hand it over to the investor as per normal procedure. The particulars of deposit/certificate which is to be reinvented will be written in place of cheque number on the receipt.

In this connection, the following clarifications have been issued by the D.G. Posts:-

Points

Clarifications

In case of deposit the agent will obtain pass book along with withdrawal form.

i. Whether withdrawal form has to be obtained in the capacity of the agent or messenger. If in the capacity of agent, then who will sign the acquittance portion.

In case of MIS Account having maturity of 3 lacs or 6 lacs rupees and depositor opts for re-investment, then who will sign the acquittance portion and who will receive the bonus/ interest/ PMI in cash/cheque.

For reinvestment in certificates/KVP agents will obtain the certificates/KVP duly signed on the back of it, by the investor. Whether any authority letter is required or not.

In case of reinvestment through agent is there any requirement of endorsement with or without signature of the depositor/investor on the back of the certificates or on the withdrawal form, for reinvestment.

4. For making reinvestment in accounts/certificates can extra amount be taken/paid to make it round figure.

1.i. The withdrawal form has to be obtained in the capacity of the acquittance potion and hand over completed SB-7, SB-3 (account opening form) along with pass book to the agent for reinvesting the matured amount into a new account.

ii. In case of MIS Account where depositor opts for reinvestment through agent, he/she will sign the acquittance portion and follow the procedure as given in (i) above. The bonus/ interest/ PMI of the matured amount shall be returned to the investor through an account payee cheque in favour of the investor and the same shall be collected by the agent.

2. If the investor wishes to reinvest his/her matured KVP/Certificates through agent, he/she will be required to send KVP application Form A1 duly completed along with his/her signature on the back of matured certificates, in token of discharge. Since he/she will authorise the agent to collect fresh certificates on his/her behalf in the application form itself, no separate authority letter shall be required.

3. As per the rules, in case of reinvestment of matured certificates through agent, the investor is required to send NSC/KVP application form along with matured certificates duly signed on the back by him or her the post office.

In the case of reinvestment of matured deposits through agents an investor is required to send SB withdrawal form along with pass book and fresh application form (SB-3) for opening a new account.
No further endorsement is required as the Application Form (SB-3)/NSC/KVP application form will already be having an authorisation by the investor in favour of the agent.

For making reinvestment in accounts/certificates, amount as per the required denomination under the rules gets reinvested and the residual amount gets paid to the investor through agent in cash or cheque as the case may be.

[D.G. Posts letter No. 25-1/2006-FS (Pt.) dated 31.8.2006 addressed to Shri Surjit Singh Sahni, President, SAS Agents Association, LG-9, Akarshan Bhawan, 23, Ansari Road, Daryaganj, New Delhi-110002]

facilities to be provided to agents by the Post Offices:- The agents should be provided all facilities and full cooperation by the Postal Staff whenever they attend the post office to transact their business. They should be treated with all courtesy and allowed to come inside the post office. They should, in no case, be asked to stand in queues with the members of the public. The Post Master should fix separate hours after the close of the business of Savings Bank so that the agents can come and transact their business during these hours.

[D.G. Posts Letters NO. F.114-27/49 dated 28.3.1951 and No. 30-13/74-SS dated 1.7.1974]

Loss of Savings Certificates by Authorised Agents:- An authorised agent from whose custody savings certificates are lost before their delivery to the investor should report the loss promptly to the-

a)Appointing Authority (b) Local Police, (c) Post Office where the certificates stand registered, and (d) Head of the Postal Circle and execute an Indemnity Bond (Annexure-14). The stamp duty on the Indemnity Bond and the postal fee for the issue of duplicate certificates shall be payable by the authorised agent. The Appointing Authority of the agent will intimate to the post office where the certificates stand registered, the fact that the agent has executed an Indemnity Bong in respect of the lost certificates. On receipt of this information further necessary action may, as usual, be taken for the issue of duplicate certificates.

[Rule 43(6) of P.S.B. Manual Volume II]

Purchase of certificates by the agents in their own names: Cases have occurred where the authorised agents have under the Standardised Agency System purchased certificates in their own names and have consequently claimed payment of commission on sale of such certificates. A question has, therefore, arisen whether or not an authorised agent is eligible to claim commission on such investments. It has been decided by the Government of India that an authorised agent cannot legitimately be debarred from payment of commission on investments made by him in his own name.

[D.G. P&T letter No. 38-1/63-F dated 20.2.1963]

Loss of receipt by the investor:- In case where a receipt granted by the agent is lost/misplaced by the investor, a written statement of the investor may be obtained to this effect which should be attested by the agent. Then it should be pasted with the agent’s copy of the receipt in the receipt book.

[Rule 17(2) of P.O.S.B. Manual volume II as amended]

Loss of certificate from the custody of officer of National Savings Institute:- In cases where a certificate held by a District Savings Officer/ Deputy Regional Director of National Savings Institute in his official capacity is lost from his custody, he will furnish its details along with the identity slip, if any, to the post office where the certificate stands registered. The District Savings Officer/Deputy Regional Director, national Savings Institute will simultaneously execute an Indemnity Bond in the prescribed form (Annexure 16) and sent it to the Director, National Savings Institute who will send an intimation of this effect to the post office concerned. The officer concerned should thereafter apply to the post office of issue of the original certificate for issue of a duplicate certificate. It will then be issued by the post office without payment of the fee prescribed under the relevant rule of each series.

[Rule 43 (6) of P.O.S.B. manual Volume II]

Loss of certificate from the custody of Officer of Central/State Government:- In cases where the certificate(s) has/have been lost from the custody of an officer of the Central Government accepting the same as a pledgee no Indemnity Bond will be got executed form that officer and no fee for issue of duplicate certificate(s) will be charged. In case of loss of certificate from the custody of an officer of the State Government working as a pledgee Indemnity Bond (Annexure-8) will be got executed without any approved sureties. The stamp duty can also be exempted with prior approval of the State Government. IN cases of loss of certificate(s) from the custody of Panchayats, execution of Indemnity Bond is necessary.

[Rule 43(5) of P.O.S.B. Manual Volume II]

Collection of Small Savings through District Small Savings Officers:- The District Small Savings Officers of the State Governments are also authorised to collect small savings directly through receipt books for all schemes. The receipt books supplied to them are different pattern and can be easily distinguished from the receipt books supplied to the authorised agents by post offices. Whenever a District Small Savings Officer collects small savings directly, he will resent at any post office doing saving bank work in his jurisdiction, an application for purchase of savings certificates or application form (SB-3) for opening of SB/RD/TD/MIS/SCSS account along with pay-in-slip duly signed by the purchaser/depositor together with the amount and the receipt book containing the duplicate copy of the receipt the original of which was handed over to the investor/depositor. The post office will issue certificate(s)/pass book after observing the usual formalities except that no commission is payable on these sales/transactions. These transactions will be treated like direct purchase of certificates or opening of accounts at the counter. The counter Assistant will, however, sign and impress the date-stamp on the counterfoil of the District Small Savings Officer’s receipt book at the time of issue of the certificate /pass book.

[Rule 17(3) of P.O.S.B. Manual volume II as amended]

Part-II

IMPORTANT ORDERS

1. Appointment of State Government employee as also near relation of P&T as agents under Standardised Agency System:-

(1) I am directed to invite attention to this Ministry’s letter No. F.1(53)-NS/57 dated 31^st December, 1959 on the subject mentioned above as amended from time to time and to state that under the Standardised Agency System (SAS). Government servants were not eligible to be appointed as agents except in the case of non-gazetted staff appointed as Internal Agents in Government Offices. However, as the cancellation at a time of all the then existing agents and their re-appointment under Standardised Agency System would have caused a serious gap, it was suggested in this Ministry letter mentioned above that while new agents should be appointed only under Standardised Agency System, the existing agencies might continue to run for the time being and be brought under Standardised Agency System within a period of one year from 1wst April, 1960/ the intention was that only persons eligible under Standardised Agency System should eventually work as agents and the existing agents not satisfying the criteria for appointment under Standardised Agency System would be phased out.

(2) Subsequently, it came to the notice that certain State Governments had appointed revenue officials and other Government officials as authorised agents under Standardised Agency System. The matter was considered by the National Savings Central Advisory Board and, in the Ministry’s letter No. F.1/23/NS-66 dated 26^th November, 1968, the State Governments and Union Territory Governments were advised that wherever possible, steps should be taken to replace official agents by non-official and institutional agents. It was hoped that the process of replacing official agents in this manner would be completed over a period of time. It has, however,come to notice that the practice of officials working as agents is still persisting in some States. The matter has, therefore, been carefully considered in all its aspects by this Ministry and it has been decided that no official of the Central or State/Union territory Governments should be appointed as agent under Standardised Agency System, except as Internal Agent in a Government office and that the agency of such person, if any, should be terminated at the earliest. The State/Union Territory Governments are, accordingly, requested to take concrete steps for replacing the official agents by non-official and institutions in a phased manner in the next two or three years.
Several State/ Union Territory Governments have issued executive instructions to the Appointing Authorities regarding appointment of agents under Standardised Agency System. Where these instructions provide for or permit appointment of officials as agents under Standardised Agency System, the instructions may be suitably modified so as to preclude appointment of officials as agents. Specific instructions may also be issued to the Appointing Authorities not to appoint or re-appoint officials as agent in future. The case of existing official agents may also be reviewed and the agency terminated wherever feasible, after giving due notice as provided in the agency agreement.

(3) At present, near relative of the following types of officials working in the Department of Posts and the National Savings Organisation are barred from appointment as agents under Standardised Agency System:-

i. An official of the Department of Posts working in a non-gazetted capacity in the same division where the agency falls.
ii. An official of the Department of Posts working in a non-gazetted capacity in the same State or Union Territory where the agency falls, in cases where the near relative is dependent on the official.
iii. An official of the National Savings Organisation working in the same State or Union Territory where the agency falls; and
iv. An official of the Department of Posts or the national Savings Organisation working in a gazette capacity, anywhere in India.

This restriction will continue. The near relatives of officials working in other Departments of the Central or State/Union Territory Governments are, however, at present eligible for appointment as agent under Standardised Agency System. Wieth a view to discouraging misuse of official position, it has been decided that in such cases, the appointment of agent may be made only if the Controlling Authority of the Government servant to whom the applicant is related, has no objection to the appointment.

(4) In order to give effect to the decision mentioned in paragraphs 2 and 3 above, the following changes may be made in the Form of Application for appointment of agents under the Standardised Agency System. (Form AAS-1):-

i. Para 3 of the application form (AAS-1) may be amplified to include a declaration “I am not employed under the Central or State/Union Territory Government”.
ii. A new para 3(A) may be added in the application form (AAS-I) as follows:-

3(A)- I declare that none of my near relatives (i.e. my wife/husband, legitimate child or step child, father/step father, mother/step mother, brother/step brother, sister/step sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law) is employed under the Central or State Union Territory Government or,

I give below the particulars of my near relatives (i.e. my wife/husband, legitimate child or step child, father/step father, mother/step mother, brother/step brother, sister/step sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law) is employed under the Central or State/Union Territory Government.

Name of relative	Relationship with applicant	Name and address of office where employed

I attach the communication(s) in original form the Head(s) of Office/ Departments where the above mentioned persons(s) is/are employed to the effect that there is no objection to my being appointed as agent under the Standardised Agency System.

(5) The above modifications, if is hoped, will enable the Appointing Authority to screen he applications and reject ineligible candidates for appointment as agents otherwise than as Internal Agents.

[MOF (DEA) Letter no. F.1/4/NS/81 dated 26.11.1981 circulated under D.G. Posts letter No. 3-15/79-SB dated 19.12.1981 and MOF (DEA) letter No. F.1/5/83 dated 16.2.1985]

2. Appointment of extra Departmental Employees of Department of Posts as agents under the Standardised Agency System:-

(1) I am directed to invite attention to this Ministry’s letter no. F.1/4/NS/81 dated 26^th November, 1981 (Para1) on the subject mentioned above, wherein it was stated that no official of the Central or State/Union Territory Government should be appointed as agent under the Standardised Agency System, except as Internal Agency in a Government Office, and that the agency of such person, if any, should be terminated as the earliest. It has since come to notice that certain extra-Departmental Postal Employees have been appointed as agents under the Standardised Agency System in Uttar Pradesh. Since the Extra-Departmental Employees of the Department of Posts are Postal employees, their appointment as agents under the Standardised Agency System was clearly irregular. I am, therefore, to request that Extra-Departmental employees of the Department of Posts may not be appointed as agents under the Standardised Agency System and where such employees have been appointed as agents, their agency may be terminated immediately. The Extra-Departmental Branch Postmasters, are, however, an exempted category of Postal Employees as they have been specifically made eligible for appointment as agents under the Standardised Agency System.

(2) In accordance with the model executive instructions, the Appointing Authorities prescribed by the State Governments are required to send copies of the Certificate of Authority in respect of newly appointed agents to the Head Postmasters and intimation to the Regional Director, National Savings. It has been observed that many of the Appointing Authorities do not send any intimation of the appointment of new agents under the Standardised Agency System to the Regional Director, National Savings, with the result that complete information regarding number and the names of the agents appointed under the Standardised Agency System is not available in the office of the Regional Director, National Savings. All Appointing Authorities may therefore be instructed that in intimation regarding appointment of new agents under the Standardised Agency System may invariably be sent to the regional Director, National Savings concerned.

[Ministry of Finance (DEA) letter No. f.1/5/85-NS dated 1.7.1983 circulated under D.G. Posts letter No. 69-3/83-SB dated 20.8.1983 and MOF(DEA) letter No. F.1/5/83-NS dated 1985]

3. Appointment of Agents under the Standardised Agency System and Mahila Pradhan Kshetriya Bachat Yojna :-

(1) I am directed to invite your attention to this Ministry’s letter No. F.1/4/81-NS dated 26.11.1981 regarding restriction on appointment of Government servants and their near relatives as agents under the Standardised Agency System for canvassing deposits under the Small Savings Schemes and to state that her matter has been further considered in this Ministry. The Small Savings Schemes are operated mostly through the post offices though their promotion and development is the responsibility of the National Savings Organisation. It is felt that the appointment of the near relatives of employees of the Department of Posts and National Savings Organisation as small savings agent is not desirable considering that the agents get commission on the investment made through them. It has, therefore, been decided that hereafter near relatives of employees of the Department of Posts and the National Savings Organisation will into be eligible for appointment as agents or for renewal of their existing agency under the Standardised Agency Scheme. Mahila Pradhan Kshetriya Bachat Yojna and the Public Provident Fund Agency Scheme.

(2) The cases of existing agents, who are near relatives of employees of the Department of Posts and the National Savings Organisation may also be reviewed and the agency terminated, wherever feasible, after giving due notice as provided int eh agency agreement.

(3) The term near relatives includes wife/husband, legitimate child or step child, father/step father, mother/step mother, brother/step brother, sister/step sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law or daughter-in-law.

(4) It has been decided that in the matter of appointment of agents, preference should be given to the unemployed, particularly to the educated unemployed. Suitable instructions may kindly be issued to all the Appointing Authorities.

[MOF (DEA) letters no. F.1/5/83-NS dated 3.1.1984 and 16.2.1985]

4. Appointment of Agents under the Standardised Agency System (SAS) and Mahila Pradhan Kshetriya Bachat Yojna (MPKBY):-

(1) I am directed to invite your attention to this Ministry’s letter No. F.1/5/83-NS dated 3.1.1984 (Item3) conveying the decision that near relatives of employees of the P&T Department and National Savings Organisation will not be eligible for appointment as agents for the renewal of their existing agencies under the Standardised Agency System (SAS). Mahila Pradhan Bachat Yojna (MPKBY) and the Public Provident Fund Agency Scheme. It was also desired therein that the cases of existing agents who were near relatives of employees of P&T Department may also be reviewed and the agencies terminated wherever feasible after giving due notice as provided in the Agency Agreement.

(2) Since then, the P&T Department has been bifurcated into two Departments from 31.12.1984, namely, the Department of Posts and the Department of Telecommunications. The Small Savings Schemes will hereafter be operated through the Department of Posts. The Department of Telecommunications will not be involved with the operation of the small savings schemes. In the circumstances the ban will not be applicable to near relatives of employees of the Department of Telecommunications.

[MOF(DEA) letter No. F.1/5/83 dated 16.2.1985]

5. Deduction for expenses on commission payable to agents appointed under the Standardised Agency System for Government Securities and the agents of Unit Trust of India:-

(1) The agents of Standardised Agency System and Unit Trust of India have drawn the attention of the Board to the fact that where no detailed accounts are maintained and the gross commission received by them does not exceed Rs. 60,000/- during the year, the benefit of an ad-hoc deduction for expenses at the rate of 50% of the gross receipt of commission is available to the authorised agents of Unit Trust of India and the agents of the following securities:-

(i) National Savings Certificates II Issue (ii) National Savings Certificates VI Issue (iii) National Savings Certificates VII Issue (iv) Social Security Certificates (v) Post Office Time Deposits.

(2) In view of the discontinuance of some of the above certificates and the notification of new schemes, as listed in paragraph 3 below, may be allowed the benefit of the same ad-hoc deduction.

(3) The Board has considered these representations and has decided that the benefit of an ad-hoc deduction at the rate of 50% of the gross receipt of commission, when it does not exceed Rs. 60,000/- during the year, be given to the authorised agents of Unit Trust of India and the agent of the following securities:-

(i) National Savings Certificates (VIII Issue)

(ii) Post Office Time Deposits Accounts

(iii) Post Office Recurring Deposit Accounts.

(iv) National Savings Scheme Accounts

(v) Post Office Monthly Income Scheme Accounts

(vi)Kisan Vikas Patras

(vii) Public Provident Fund Accounts.

(viii) Senior Citizens Savings Scheme Accounts.

[Central Board of Direct Taxes Circular no. 168/6-IT (A1) dated 27.2.1991 and 15.5.1991 circulated under MOF (DEA) letter No. F.3/53/89-NSII dated 28.6.1991 and D.G. Posts letter No. 61-40/91-SB dated 28.9.1991]

(4) If the commission earned during the year exceed Rs. 60,000, no ad-hoc deduction will be allowed and admissibility of expenditure will be considered by the Assessing Officer as per provision of the Income Tax Act. Wherever complete and reliable accounts of expenditure are maintained, actual expenditure incurred can be allowed by the Assessing Officer.

[CBDT Circular No. 677 dated 28.1.1994]

6. Standardised Agency System- Facility of Nomination- Amendments to the Form of Agreement (Form AAS-4) :-

(1) I am directed to state that suggestions have been received from time to time from authorised agents of Small Savings, Advisory Boards and others that the agents may be allowed the facility of nomination in respect of commission payable to them in terms of the Agreement executed by them. These suggestions have been considered in this Ministry and it has been decided to allow the facility of nomination to agents in respect of commission payable to them under the Standardised Agency System.

(2) With a view to affording the facility of nomination to the agents under Standardised Agency System, it has been decided that he Form of Agreement under Standardised Agency System (Form AAS-4) may be amended as follows:-

(i) In the last para of the preamble, for the word “Schedule”, the word and letter ‘Schedule A’ shall be substituted.

(ii) The following new Para 7A may be added, namely;-

(7A) In the event of death of the agent, the amount due and payable to him as commission in terms of this Agreement, shall be payable to his nominee(s) specified by him in the Schedule ‘B’ hereunder written.

(iii) In the Schedule to the Form of Agreement, for the Heading ‘Schedule refered to above’ the Heading “Schedule A referred to above” shall be substituted.

A new schedule ‘B’ may be annexed to the Form of Agreement as in the form enclosed.

(3) Similar action in respect of the Form of Agreement under Mahila Pradhan Kshetriya Bachat Yojna is being taken separately.

[MOF (DEA) letter NO. F.1/13/81-NS dated 2.6.1983 and N.S.C. Nagpur letter No. Dev. 23/1/1/83 dated 14.7.1983]

Schedule ‘B referred to above

I…………………………… the agent under this agreement hereby nominate the person(s) mentioned below, who shall, on my death, become entitled to any amount due and payable to me by way of commission in terms of this Agreement to the exclusion of all other persons.

S.No.	Name of the nominee(s)	Full Address	Date of Birth of nominee, if minor

As the nominee(s) at Serial No.(s) above, is/are minor, I appoint the following persons(s) to receive the aforesaid amount in the event of my death during the minority of the nominee(s).

Name of Nominee(s)	Name and address of person appointed

Place………… Signature…………………

Date………… (Name of Agent in full) C.A. No. and Address

Witness Accepted

Signature with date…………….

Name in full…………………… Signature of Appointing

Address………………………… Authority

Signature with date………………

Name in full…………………….. (Name and designation Stamp)

Address……………………….. Date……………

7. Standardised Agency System- Facility of Nomination- Amendments to the formof Agreement (Form AAS-4):-

(1) Please refer to the Government of India, Ministry of Finance (DEA), New Delhi letter NO. F.1/13/81-NS dated 2.6.1983 addressed to all Finance Secretaries with an endorsement to Regional Directors regarding introduction of a nomination facility to SAS agents. Our letter of even number dated 14.7.1983 on the same subject addressed to all Regional Directors may please be referred to.

(2) It is requested that the following procedure may be followed with regard to the nomination facility to SAS Agents.

(a) While sending a copy of the Certificate of Authority of a newly appointed agent under SAS to the head Post Office, Sub Post Office concerned, the Appointing Authority should also send a copy of nomination (Schedule B to the form of Agreement) to be made by an agent. This nomination may be obtained from an agent in triplicate.

(b) The Appointing Authorities should also get the form of nomination (Schedule B) filled up by all existing SAS Agents on roll immediately by issuing letters individually or if the cases of renewal of agencies of certain SAS agents are under finalisation at the office of the Appointing Authorities, copies of Nomination of all these existing agents may be sent to the respective Head Post Offices/Sub post Offices on top priority basis.

(c) In the agent’s Register, being maintained by the Appointing Authorities, suitable column may be provided to show that the Nomination has been made by an agent.

(d) The provision of a nomination is an additional facility given to an agent and this has not caused major/legal changes in the Agreement form already executed by existing agents. We, therefore, feel that at the time of obtaining nomination from the existing agents, no separate agreement need to be executed by them. However, after obtaining the nomination in ‘Schedule B’ the same may be simply attached to the Agreement executed by the existing SAS Agents.

(e) After receipt of copies of Schedule B in respect of SAS Agents, the concerned Head Post Office/Sub Post Office should file these copies with the copies of Certificate of Authority of the respective Agents.

(f) The form of nomination i.e. Schedule B as forwarded to you by the Ministry vide their letter under reference does not provide for dated signature by the agent concerned and two witnesses who should attest the signature of a particular agent. This was considered necessary and therefore the amended form of nomination (Schedule B) enclosed herewith may be used in all cases.

(g) The forms of nomination may be cyclostyled or printed by you as per your requirement.

(3) Similar procedure may also be followed in case of MPKBY agents. In regard to PPF agency, no agreement is executed by PPFP agents, and hence the form of nomination (Schedule B) may be completed and obtained from them at the time of appointment. This document may be kept by the Appointing Authority along with copies of appointment letter, C.A. etc.

[ N.S.C. Nagpur letter No. Dev/23/1/1/83 dated 12.5.1987 circulated under D.G. Posts letter No. 62-10/83-SB dated 30.6.1987]

8. Appointment of near relatives of EDBPM as agent under the SAS/MPKBY Agency System-Clarification regarding:- (1) Some Postal Circles had sought clarification about the eligibility of near relatives of EDBPM for appointment as agents under SAS/MPKBY Agency System. The matter has been examined in consultation with the Ministry of Finance (DEA) and it has been clarified by the Ministry that there is no bar in appointing relatives of EDBPM as agents under SAS. In so far as MPKBY is concerned, there is no specific provision for appointing EDBPMs as MPKBY agents since this scheme is specifically for women. As such their relatives cannot be appointed as MPKBY agents.

(2) It is requested that this clarification may be brought to the notice of all concerned in your jurisdiction for information and guidance.

[D.G. Posts letter No. 107-4/2001-SB dated 10.1.2002]

9. Stopping of appointment and renewal of agency under SAS and MPKBY agency system by Regional Directors, National Savings Organisation (Institute):- The Ministry of Finance, (DEA) New Delhi, have directed us vide letter No. F.2/1/2001-NS-I dated 15.11.2002, to stop appointment of agency and renewal of agency under SAS and MPKBY Agency System with immediate effect. They have also mentioned that the existing agency force under SAS and MPKBY should approach the concerned agency as well as renewal of old agency, as per the prescribed rules. Henceforth, you are directed not to issue any fresh agency or renew old agency as stated above.

However, regarding PPF agency system, the present system of appointment and renewal will continue with NSO till further orders.

[NSC Nagpur letter No. 12684-712/tech./Agency/21-2/2002 dated 21.11.2002 addressed to all Regional Directors and Deputy Regional Directors, National Savings Organisation (Institute)]

Issue of certificate of commission earned by authorised agent:- A certificate of commission actually paid during the financial year should be issued to the authorised agent by the Postmaster annually at the end of the financial year on receipt of a written request to this effect from the authorised agency. Such certificate may be issued on charging a fee of Re.1/- per certificate. The request of issue of such a certificate can be made on plain paper with postage stamp of Re.1/- duly affixed which will be defaced by the date stamp of post office.

[D.G. Posts letter No. 3-14/77-SS dated 27.3.11978]

11. Payment of commission of heirs of deceased agents:- In the case of death of the authorised agent, the commission admissible to him/her may be sanctioned and paid to his/her heir(s) by the authorised Postmaster after establishing the claim. The agent can also nominate any person or persons to take payment of his commission after his death. The nomination will be given in the Schedule in triplicate to the agreement (Form AAS-4) to be executed by him. One copy of the nomination will be sent by the Appointing Authority to the concerned Head/Sub Post Office to be kept along with the Certificate of Authority.

[Rule 17(11) of P.O.S.B. Volume II and Ministry of Finance (DEA) letter No. F.1/13/81-NS dated 2.6.1983]

12. Report to Income Tax Authorities:- (1) The Head Postmasters should send a list of authorised agents drawing commission of Rs. 5000 and above during the financial year to the concerned Income Tax Commissioners as soon as possible after the close of the year.

[D.G. Posts letters No. 3-9/75-SS dated 14.4.1976 and No. 107-16/2000-SB dated 4.5.2000]

U.P.C.Tauro, Secretary IPROA

Contact Secretary

Tuesday, 18 July 2023