Ceylon Post Office Savings Bank Ordinance

Arrangement of Sections

1. Short title.

2. Continuation, of existing Savings Bank and application of Ordinance thereto.

3. Management and control of Bank.

4. Appointment and discontinuance of offices of the Bank.

5. Employment of officers.

6. Deposits and repayments.

7. Interest on deposits.

8. Repayment guaranteed by Government of Ceylon.

9. Expenses of the Bank.

10. Trustees of the Bank.

11. Investment and deposit of moneys in the Bank.

11A. Bank moneys to be used for the construction of buildings.

12. Sale of securities, and advances to the Bank out of Consolidated Fund.

13. Accounts of the Bank.

14. Surpluses and deficits.

15. Moneys in name of married woman.

16. Moneys of deceased depositors.

17. Exemption from stamp duty.

18. Settlement of disputes.

19. Power to make deductions from accounts of depositors in the Bank.

20. Non-liability of Government and officers.

21. Names of depositors not to be disclosed.

22. Power to make regulations.

23. Interpretation.

24. Savings and transitory provisions.

18 of 1941,

51 of 1946,

22 of 1948,

32 of 1956,

47 of 1958.

AN ORDINANCE to amend the law relating to the Post Office Savings Bank.

[Date of Commencement: 1st October, 1941]

1. Short title.

This Ordinance may be cited as the Ceylon Post Office Savings Bank Ordinance.

2. Continuation, of existing Savings Bank and application of Ordinance thereto.

The Post Office Savings Bank existing on the day immediately preceding the appointed date by virtue of the provisions of the Post Office Ordinance shall be continued under this Ordinance as the Ceylon Post Office Savings Bank and shall be conducted in accordance with the provisions of this Ordinance and the regulations made thereunder.

3. Management and control of Bank.

Subject to the provisions of section 11, the Bank shall be under the management and control of the Postmaster-General who may take such steps as he may deem necessary for the encouragement of thrift, for the proper management of the Bank, and generally for the promotion of the objects and purposes of this Ordinance.

4. Appointment and discontinuance of offices of the Bank.

(1) The Postmaster-General may from time to time appoint any post office in Ceylon to be an office for the transaction of the business of the Bank and may discontinue any office so appointed.

(2) Every office of the post office savings bank appointed under the provisions of the Post Office Ordinance, and existing on the day immediately preceding the appointed date, shall be deemed to be an office appointed under subsection (1) for the transaction of the business of the Bank.

5. Employment of officers.

There may be appointed such officers and servants as may be necessary for the purposes of this Ordinance, and, where all the necessary officers and servants are not so appointed, the Postmaster-General may for such purposes employ for the whole or part of their time officers and servants of the Posts and Telecommunications Department.

6. Deposits and repayments.

Deposits of money to be paid into the Bank shall be received, and moneys to be withdrawn from the Bank shall be repaid, under such conditions as may be prescribed.

7. Interest on deposits.

(1) Interest shall be payable on deposits at the rate of two rupees and forty cents per hundred rupees per annum, or at such other rate1 as may be fixed from time to time by the Minister with the concurrence of the Minister of Finance. Notice of any change in the rate of interest shall be published in the Gazette not less than three months before the date of such change.

(2) No interest shall be payable—

(a) on any amount in deposit which is less than the amount prescribed as the minimum amount on which interest is payable; or

(b) on the sum, if any, by which an amount in deposit exceeds the amount prescribed as the maximum amount on which interest is payable.

(3) Interest shall be payable only on such complete unit or units of a prescribed sum as may be comprised in the amount in deposit.

(4) Interest on any amount in deposit—

(a) shall not commence to accrue until the first day of the month next following the date of the deposit of that amount; and

(b) shall be deemed to have ceased to accrue on the last day of the month preceding the date on which that amount is withdrawn.

(5) Interest on every amount in deposit shall, subject to the provisions of subsections (2) and (4), be calculated to the thirty-first day of December in every year, and shall then be added to and become part of the principal amount remaining on deposit.

8. Repayment guaranteed by Government of Ceylon.

The repayment of all moneys deposited in the Bank and of the interest thereon is guaranteed by the Government of Ceylon and is hereby constituted a charge upon the Consolidated Fund; and accordingly, whenever the assets of the Bank are insufficient to pay a lawful claim made by any depositor, the deficiency shall be met out of the Consolidated Fund.

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