(1) Where a deposit in an account has become due for repayment, the account holder may at his option by making an application to the accounts office in Form-3, may further extend the account for another tenure for which the account was initially opened.
(2) Where an extension is made under sub-paragraph (1), the option for extension shall be exercised as specified in the table below:
TABLE S. No.
Category of the account Period from date of repayment by which option for extension may be exercised.
170 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(1) (2) 3
1. One-year Six months
2. Two-year Twelve months
3. Three-year Eighteen months
4. Five-year Eighteen months
(3) Where option of extension of deposit is exercised within the period specified in sub- paragraph (2), interest applicable to the category of account under the Scheme on the date of repayment shall be payable.
(4) The account holder shall be allowed to extend the account as per sub-paragraph (2) only twice after the initial repayment date.
(5) Option to extend the account as per sub-paragraph (1), may be exercised by the account holder at the time of opening of the account also. However, the account holder may revoke the option to extend the account any time before the date of repayment.