Section 13 in The Post Office Savings Certificates Rules, 1960
13. Excess of irregular holdings.
(1)Any certificate purchased or acquired in excess of the limits prescribed in these rules or in the old rules or in contravention of these rules shall be encashed by the holder as soon as fact of the holding being in excess of the limit or in contravention of these rules is discovered and no interest shall be paid on either the excess holding shall not be considered in excess of the limit prescribed in these rules. Provided that the holding shall not be considered in excess of the limit prescribed in these rules or in the old rules, if it is due to any of the following reasons, namely:-(a)inheritance;(b)award by the Government for meritorious services;(c)survivorship in the case of joint holdings;(d)statutory devolution; and(e)nomination -Provided further that where the Central Government is satisfied that such purchase or acquisition of certificates is due to a bona fide error on the part of the holder thereof, it may authorise payment of simple interest on the face value of the certificate at the same rate as is admissible for the time being in force for the type of in the post office savings bank with which such holder is entitled to open under the provisions of the Post Office Saving Accounts Rules, 1981.(2)If any interest has been paid on any excess holding or any holding which is in contravention of these rules, it shall be forthwith refunded to the Government, failing which, the Government shall be entitled to recover the amount involved from any money payable by the Government to the investor or as an arrear of land revenue.
