Can the payment of a Government security be made to minor or insane person?
No. If a Government security is held on behalf of a minor , the payment for the same may be made to the father or mother of such minor and in case neither parent is alive, to a person entitled as per law to take care of the property of the minor. However, if a Government security, whose principal value does not exceed Rupees one lakh, belongs to a minor or person who is insane and incapable of managing his affairs, RBI may make a vesting order in terms of regulation 17 in favour of a person whom it considers to represent the minor or insane person.
