Savings Bank and Savings Certificate
From 01/06/2009 onwards, KYC (Know Your Customer) policy is applicable to Post Office Savings Bank. The objective of KYC/AML/CFT guidelines is to prevent money laundering or terrorist financing activities by use of Post Office Savings Bank intentionally or unintentionally by criminal elements. KYC procedures also enable to post office Savings Banks to know/understand their customers better which in turn help them manage the risks prudently.
It has been decided by Min. of Finance that from 1.4.2016, interest rates of small savings schemes will be reviewed and revised on quarterly basis. Min. of Finance (DEA) has also notified that maturity/premature value of RD, NSC (VIII- issue) and KVPs which shall be applicable for the accounts opened /certificates purchased on or after 1.4.2016.
Interest rates on various Savings
schemes from 01.04.2020 shall be as under:
|
Types of savings accounts |
Rate of interest |
|
Savings account |
4.0 % |
|
I year
Time deposit |
5.5 % |
|
2 year Time
deposit |
5.5 % |
|
3 year
Time deposit |
5.5 % |
|
5 year Time
deposit |
6.7% |
|
5 year Recurring Deposit |
5.8 % Maturity value
Rs6969.70 |
|
5 year Senior
Citizens Savings scheme |
7.4 % |
|
5 year Monthly Income Account Scheme |
6.6 % |
|
5 year
National Savings Scheme |
6.8% |
|
Public
Provident Scheme |
7.1% |
|
KisanVikasPatra |
6.9%(will mature
in 124 months) |
|
SukanyaSamriddhi Account Scheme |
7.6 % |
The Government Savings
Promotion General Rules,
2018. – Short Note.
The Definitions:
i.
Accounts Office - means an office of a Government Savings
Bank authorized to open an account.
ii.
Eligible Balance - means the
amount of balance at the credit of the account,
including interest accrued thereon, after effecting recoveries on account of outstanding principal and
interest, if any, in respect of a loan availed by the depositor.
iii.
Joint Account - means an account opened in the names of
more than one and up to four individuals.
iv.
Matured account - means an
account, which has completed its term or extended term and
has become due for payment.
v. Non-resident Indian - means an individual being a citizen of India or a person of Indian origin who is not a ‘resident’ as per the provisions of the Income Tax Act, 1961 (43 of 1961).
vi.
Officially Valid Document -
means the passport, the driving license, the
Voter's Identity Card issued by the Election Commission of India, job
card issued by Mahatma Gandhi
National Rural Employment Guarantee Act duly signed by an officer of the State
Government, letter issued by the National Population Register containing details
of name and address.
vii.
Operation of an Account - means
opening of, deposit in, transfer of or withdrawal from an
Account.
viii.
Passbook - means a document, in physical or electronic form,
issued by an Accounts Office containing
particulars of the depositor and details of transactions made in that account.
ix.
Single Account - means an account
opened in the name of one individual.
x.
Transfer - means transfer of an
account of a depositor from one Accounts Office to another Accounts
Office.
Eligibility to open an account:
i.
An adult who is a resident
citizen of India.
ii.
A Minor who has attained the age of ten years.
iii. A guardian on behalf of a minor or person of unsound mind.
Opening of an account:
i.
An Account may be opened by the depositor
either by visiting
the Accounts Office in person or through
permissible electronic modes including internet
or mobile banking
application.
ii.
A blind or visually challenged
or illiterate depositor may open joint account
with literate depositor.
List of Identity Documents:
i.
Aadhaar Number.
ii.
Permanent Account
Number or Form 60.
iii.
Any other document as may be
considered necessary by the Accounts Office including
those related to the nature of business and financial status of the depositor.
(If a depositor fails to submit his PAN within a
period of six months from the date
of the opening of the account, the account shall cease to be operational till the time PAN is submitted.)
List of Proof of Address Documents:
i.
Utility bill which is not more
than two months old of any service provider
(electricity, telephone, postpaid
mobile phone, piped gas, water
bill);
ii. Property or Municipal tax receipt;
iii.
Pension or family pension
payment orders issued to retired employees by
Government Departments or Public Sector Undertakings, if they contain the address;
iv.
Letter of allotment of
accommodation from employer issued by the State Government or Central Government Departments, statutory or
regulatory bodies, public sector
undertakings, scheduled commercial banks, financial institutions;
·
Note: The depositor shall submit Aadhaar or PAN or a certified copy of an officially valid document
containing updated current address within a period of three months of submitting the above documents.
ü In Joint Account,
identity documents of all the depositors are needed.
ü In accounts on behalf of minor or person of unsound mind, the
identity documents of the guardian
are needed.
ü Account opened through, the agent shall affix signature and mention
the particulars of his agency
on the identity documents.
ü In case of change of address, the depositor shall submit the
relevant identity document
with updated address
within a period
of three months.
Modes of Deposit:
i.
In cash in Indian rupees;
or
ii.
by means of a crossed Cheque, a
Demand Draft or a Pay Order; or
iii.
by submitting a signed
withdrawal Form in respect of a savings account standing in the same Accounts
Office; or
iv.
by electronic transfer
permitted by the Reserve Bank of India in respect of similar transactions in commercial banks.
ü In case of deposit by means of a cheque, the date of realisation of the cheque shall be the date of deposit.
Types of Accounts:
i.
Single Account
ii.
Joint Account
1.
Joint ‘A’to be operated by all
the depositors or the surviving depositors jointly.
2.
Joint ‘B’to be operated by any
of the depositors or the surviving depositors severally.
iii.
An account opened as a Single
Account cannot be subsequently converted into a Joint Account
or vice versa.
Payment of Interest:
ü No interest shall be payable on an account opened or maintained, or
on a deposit made, in contravention of these rules.
ü In an account which has matured but not closed, the eligible balance
in the account shall continue to
earn interest at the rate applicable to the
Post Office Savings
Account till the closure of the account.
ü Any interest credited erroneously to an account shall be reversed immediately on the detection
under written intimation to the depositor.
Operation of an account
opened in the name of a minor:
ü An Account opened in the name of a minor shall be operated by
i.
the guardian, if opened
by the guardian;
ii.
the minor, if opened
by the minor.
ü In account opened on behalf of a minor, when the minor attains
majority, the minor shall submit a
revised application on which his signature shall be attested by his guardian
who opened the account.
ü On death of minor or person of unsound mind, the eligible balance
shall be paid to the nominee (or to guardian
if nomination is unavailable.)
ü On death of guardian, the succeeding guardian shall be eligible to
operate the account of the Minor or the person
of unsound mind.
Operation of an account by depositors suffering from
physical infirmity or by differently-abled
persons (including persons with autism, cerebral palsy and mental
retardation):
ü Any literate person of depositor’s choice can be authorized to
operate on his behalf.
ü Such authorization can be either withdrawn or varied at any time by
the depositor.
Withdrawal from an account:
ü At the time of payment of maturity proceeds or partial withdrawal or interest,
the depositor shall
affix his signature or thumb impression in the presence of the
authorized officer who shall verify the identity of the person.
ü Guardian to furnish
the following certificate for withdrawal:
o “that the amount
sought to be withdrawn is required for the use of Mr./ Ms. who is minor
or a person of unsound mind and is alive on this day.”
ü Payment can be made through
any of the following modes:
i.
by transfer to the Savings Bank account of the payee,
ii.
by a crossed cheque,
iii.
by cash, if the amount is below the prescribed limit.
Transfer of an account
ü Account may be transferred from one
PO to another anywhere in India.
ü Application may be submitted to either the PO where the account is maintained or to the PO where it is to be transferred.
List of documents (in original) to be transferred to the transferee office:
i.
Account Opening Form,
ii.
Specimen signatures of the depositors,
iii.
Particulars of nomination,
iv.
Identity documents,
v.
Updated Account Statement or Ledger,
vi.
Certified copy of Savings
Certificate, in case of Savings
Certificate,
vii.
Pay Order or Demand Draft in
respect of the balance at the credit of the
Account.
Nomination:
ü Nomination is mandatory
for all types
of accounts.
ü Maximum four individuals can be nominated.
ü If nominee is a minor,
the depositor to authorize an appointee.
ü Nomination can be varied by the depositor any time before the
maturity of the account.
ü Nomination stands cancelled
on:
i.
death of all the nominee,
ii.
transfer of the account
as security (pledging)
ü If depositor is illiterate, attestation by two witnesses is required
while making/altering nomination.
No witness is necessary for literate depositors.
Payment on the death
of depositor:
ü If nomination in force:
o
to the nominee(s) on production
of proof of death of depositor(s) and other nominee(s),
if any.
o
If any nominee dies, his
specified share in the eligible balance shall
be distributed among the surviving nominees in the same proportion as their specified
shares.
o
If nominee is minor to the
appointee or guardian, as the case may be.
ü If no nomination in force:
o
If probate of his will or
letters of administration of his estate or a
succession certificate is notproduced within six months from the death of the depositor then,
§
if the eligible amount in the
account does not exceed Rs.5lakhs,
the authority may pay the same to any person
appearing to him as the rightful claimant and to his satisfaction to be entitled to receive the
amount, when submitted with relevant documents.
§
if amount is above Rs. 5 lakh,
shall be paid to the claimant on
submission of ‘Succession Certificate’ issued
by the court along with other relevant
documents.
Pledging of an account
(where the provision
of the Savings Scheme so permit):
ü Transfer of an account as security may be made to:
i.
the President of India or the
Governor of a State in his official capacity;
ii.
the Reserve Bank of India or a
Scheduled Bank or a Cooperative Society, including a Co-operative Bank;
iii.
a Public or Private
Corporation or a Government Company;
iv.
a Local authority;
v.
a housing finance company
approved by the National Housing Bank and notified
by the Central Government.
ü Guardian to certify that minor/person of unsound mind is alive and
that the transfer is for his benefit.
ü A blind or a person with physical infirmity may pledge his deposit
through any literate individual whom he authorizes.
ü The transferee of an account, until it is transferred back, shall be
deemed to be the depositor.
Passbook:
The passbook shall contain:
ü Customer Identification number,
ü Name and address
of Accounts Office,
ü System generated unique
accounts number,
ü Name of the scheme,
ü Name and address
of the depositors,
ü Type of account
(single or joint-A
or Joint-B or Minor or authorized),
ü Amount of deposit,
ü Date of deposit, date of extension and date of maturity,
ü Nomination registration number and date.
Loans and partial withdrawal:
ü In an account on behalf of a minor or a person of unsound mind, loan
or partial withdrawal is permitted to the guardian
on furnishing certificate:
o
“Certified that the amount sought to be withdrawn is required for the use and welfare of Shri/Smt/Master/Kumari who is a
minor/ a person of unsound mind/ a person incapable of operating his account due to physical
infirmity and is alive on this the day of (month),_ (year).”
ü In account opened by a minor, the loan or partial withdrawal shall
be permissible to the minor.
|
Fee to be charged for the Services |
||||
|
Sl No |
Details of service |
Fee |
GL Code |
|
|
|
|
|
|
|
|
1 |
Issue of duplicate pass book |
Rs 50/- |
8800800010 |
|
|
2 |
Issue of statement of account or deposit receipt |
Rs 20/- in each case |
1800423500 |
|
|
3 |
Issue of pass book in lieu of lost or mutilated certificate |
Rs 10/- per registration |
8800800010 |
|
|
4 |
Cancellation or change
of nomination |
Rs
50/- |
1800423200 |
|
|
5 |
Transfer of account |
Rs 100/- |
8800800040 |
|
|
6 |
Pledging of account |
Rs100/- |
1800423500 |
|
|
7 |
Issue of cheque
book in Savings Bank Account a.
Up to 10 leaf in a FY b. Above 10 leaf in a FY |
Free Rs 2/- per
leaf |
1800423500 |
|
|
8 |
Charges on dishonour of cheque |
Rs 100/- |
1800423500 |
|
|
Tax as applicable on the above
service charges shall
also be payable. |
||||
|
9 |
CGST Collection on Banking and FIN Services |
9% |
8866102590 |
|
|
1 0 |
SGST Collection on Banking and FIN Services |
9% |
8866102610 |
|
|
1 1 |
UTGST Collection on Banking and FIN Services |
9% |
8866102630 |
|
The Post Office
Savings Account Scheme,
2019 – Short Note.
ü “Year” means a period of twelve months commencing on the 1st day of April.
ü Only one account
can be opened by an individual as a single
account.
Eligible to Open Account:
ü a single adult;
ü two adults jointly;
ü a guardian on behalf
of a minor;
ü a guardian on behalf
of a
person of unsound
mind;
ü a minor who has attained
the age of ten years, in his own name.
Joint Account:
ü The share of an individual in the balance in a joint account shall
be in equal proportion.
ü On the death of one of the account holder in a joint account, the
surviving account holder
shall be treated
as the sole owner of the account.
o
He may continue the account if
he has no other single account in this
Scheme. If he already has another account, this account shall have to be closed.
Deposits and Withdrawals:
ü Minimum initial deposit:
INR.500.
ü Minimum subsequent deposit:
INR.10.
ü Maximum deposit: No limit.
ü Minimum withdrawal: INR.50.
ü All deposits and withdrawals are allowed in whole
rupee only.
ü No withdrawal is permitted that will reduce
the balance below INR.500.
Interest on deposits:
ü Rate of interest
is revised by MoF quarterly.
ü The interest is allowed for a calendar month on the lowest balance
at the credit of an account between
the close of the tenth day and the end of the
month.
ü Interest shall be calculated and credited in the account at the end
of each year.
ü The interest shall be allowed
only on sums of whole rupees.
o
Any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
ü If balance falls below INR.500 between the tenth and end of the
month, no interest is allowed
for that month.
ü If an account is closed during a year, interest shall be allowed
upto the previous month of the closing month.
ü On death of an account holder, the interest in his account shall be
paid only in the end of the month
preceding the month in which the account is
closed.
Issue of Cheque Book:
ü A cheque book of ten leaves
may be issued free of charge in a year.
ü Subsequent issue of cheque book shall be charged at two rupees per cheque
leaf.
Silent Account:
ü An account becomes ‘Silent Accounts’ if no deposit or withdrawal has taken
place for three complete
years.
ü Transaction is allowed
only after revival
of silent account.
ü Credit of interest
in a Silent Account
shall not be treated as a transaction.
Closure of Account:
ü The account may be closed
at any time by the account holder.
The National Savings
Recurring Deposit Scheme,
2019 – Short Note
ü “Year” means a period of twelve months commencing from the date of first
deposit in the account.
ü An individual may have more than one account in his name or jointly
with another.
ü The maturity period
RD Account is five years.
Eligibility to Open Account:
ü a single adult;
ü upto three adults
jointly;
ü a guardian on behalf
of a minor or a person of unsound mind;
ü a minor who has attained
the age of ten years, in his own name.
Maturity period.- The
maturity period of the account shall be five years. Deposits:
ü Generally 60 monthly
deposits in an account.
ü Minimum denomination: INR.100
(or above in multiples of INR.10.)
ü Initial funding to be done at the time of account opening.
ü Denomination cannot be varied during
the currency of account.
ü Subsequent deposits:
o
if account is opened before the
sixteenth day of a calendar month, subsequent
deposits to be made upto the fifteenth day of each month;
o
if the account is opened
between the sixteenth day and the last working
day of a calendar month, deposits to be made upto the last working
day of each month.
Defaults in deposits:
ü Maximum 4 defaults
allowed in a RD account.
ü Upto 4 defaults, the account holder may extend the maturity period
by as many months as the number of
defaults and deposit the defaulted installments during the extended
period.
ü If more than four defaults, the account is treated as ‘discontinued.’
ü Revival of ‘discontinued account’ is allowed only within a period of
two months from the month of the fourth
default.
ü Revival fee: INR.1 for every INR.100 of a defaulted installment for
each month of default.
Advance deposits:
ü Advance deposits cannot
be made in a ‘discontinued account.’
ü Advance deposits can be made in any month during the currency of account
ie. at the time of opening of the account
or any time thereafter.
ü Minimum six-monthly installments including the current month shall
be made to be eligible
for rebate.
ü If the advance deposits are made for a period less than 12 months,
the rebate will be that of
6 monthly advance deposits
only.
ü Rebate is given irrespective of whether the amount was deposited in
one lump sum in any calendar month
or on different dates in any calendar month.
ü Advance deposits may be made for any period up to five years.
ü
|
Sl. No. |
Number of advance deposits |
Rebate for an account of INR.
100 denomination |
|
1. |
6 or more deposits but
not exceeding 11
deposits made in any calendar month. |
INR.10. |
|
2. |
12 or more deposits made in any
calendar month. |
INR.40 for every 12 deposits and INR.10 for the balance, if any, of not less
than 6 deposits. |
Premature closure:
ü Allowed after three years.
ü Not allowed until the period for which any advance deposits have
been made.
ü Interest as the same rate at the Post Office Savings Account.
Maturity:
ü Amount on maturity
will be revised quarterly by MoF.
ü Discontinued and not been revived account to receive an amount in
the same proportion to the maturity.
ü The amount payable on final closure on maturity or otherwise in the account
shall be rounded
off to the nearest rupee.
Accounts continued
beyond maturity period
with or without fresh deposits:
ü The account may be continued for a further period of up to a maximum
of five years in the same
denomination with fresh deposits by making an
application in Form-4.
ü The continued account may be closed at any time. Then the amount of repayment will be calculated as per the
prescribed rates specified from time to time.
ü
|
Illustration |
|
|
If an account completed 9 years
and 6 months from the date of |
1 . Amount payable inclusive
of interest for the account continued with |
|
opening (continued for 4 years and
6 months) and deposited with 114
installments (60+48+6) is closing
today, the amount payable
will be the total of |
fresh monthly deposits for four years
as per the table |
|
2 . SB rate
of interest for six months on the amount mentioned above
as item number(1) |
|
|
3 .The amount of 6 installments
without any interest. |
ü If a discontinued account is retained after the date of maturity,
interest at the rate applicable to
RD for completed years, and at the rate applicable to the Post Office Savings Account for completed months shall be
paid on the maturity value on the date of maturity.
ü
|
Illustration |
|
|
If an account completed 9
years and 6 months from the date
of opening (continued without fresh deposits and retained the deposit for 54 months (48+6))is closing today,
the amount payable will be the total of |
1 . Amount payable inclusive of interest
for the account continued without fresh
monthly deposits for four years as per the table |
|
2 . SB rate of interest
for six months on the amount
mentioned above as item number(1) |
|
Repayment on the death of the account
holder:
ü On the death of the account holder in a single account, or of all
the account holders in a joint
account, no further deposits shall be made in
the account.
ü Repayment shall be made to the nominee
or legal heirs.
ü Then the amount of repayment will be calculated as per the prescribed rates
specified from time to time.
ü If there are upto three surviving nominees or legal heirs, they may continue the account as if their own.
ü On the death of the guardian of minor or a person of unsound mind,
the new guardian may close the
account and claim the amount if the same is
required in the interest of such account
holder.
Protected Savings
Scheme:
Under the Protected Savings Scheme, on the death of
depositor before maturity of the
account, the legal heir is entitled to get full maturity value, subject to the conditions:
ü The payment of full maturity
value under this paragraph shall be restricted to the maturity value of an
account of the denomination of one hundred
rupees (even in cases of account holder having multiple accounts with
denominations exceeding or not exceeding
one hundred.)
ü The account has not become a discontinued account.
ü The account should have completed at least two years on the date of death
of depositor.
ü The age of the account holder at the time of opening the account was
not less than 18 years and not more than 55 years.
ü If more than one account of the denominations exceeding one hundred rupees
benefit is given
to the account specified by the depositor.
ü If no account has specified, benefit is given to the earlier account
which qualifies the eligibility
conditions.
ü The first 24 monthly deposits
have been made without default.
o
The amount of defaults, if any,
after 24 months from the date of opening,
together with revival fee on such amount at the specified rate,
shall be deducted
from the amount payable under PSS.
ü No loan has been made from
the account during the first 24 months.
o
If a loan has been availed
after 24 months from date of opening, any
outstanding amount of such loan with interest due shall be deducted
from the amount payable
under PSS.
ü The claim should be made within a year from the date of death of the account
holder.
ü The amount of advance deposits remaining after the death of the
account holder, if any, shall be
refunded back to the claimant along with the full maturity value of the account under PSS.
ü If the account holder has more than one account of the denominations
not exceeding one hundred rupees
the benefit is given to such accounts specified
by the account holder subject to the
maturity value of an account of one hundred
rupees.
ü If the account holder has more than one account of the denominations exceeding one hundred rupees the benefit
is given to such accounts specified
by the account holder subject to the
maturity value of an account of one hundred
rupees.
ü If no account is specified by the account holder this benefit is
given to the earlier accounts
which qualifies the eligibility conditions.
ü If there are more than one account with different nominations the
benefit is given to the earlier
accounts which qualifies the eligibility conditions.
ü In case of an account of denomination of more than one hundred
rupees, the proportionate maturity
amount which shall bear the same proportion to
the full maturity value as the number of instalments deposited in the account bear to sixty shall be calculated
and if the amount so calculated exceeds
the full maturity value of an account of the denomination of one hundred
rupees, no benefit
under this paragraph
shall be admissible.
ü If the said proportionate maturity value is less than the full
maturity value of an account of one
hundred rupees denomination, then an amount equal to the maturity value of a one hundred rupees denomination
shall be payable under the Protected Savings Scheme.
ü If a deceased
account holder has more than one account
having denominations of less
than one hundred rupees eligible for benefit under this Scheme, but the total of their denominations exceeds rupees
one hundred, the benefit of this Scheme shall be admissible only if the combined
proportionate maturity amount, of all such accounts is less than the maturity value of the account of one hundred
rupees denomination.
Loan:
Loan can be availed
in RD account under the conditions:
ü The account should not be a discontinued one.
ü Account should have completed minimum
one year.
ü Minimum of 12 monthly installments should have been made.
ü Maximum available loan amount is 50% of the balance at credit
including that of advance deposits
made.
ü The loan amount should be a multiple of INR.10.
Repayment of Loan:
ü The loan may be repaid, at any time during the currency of the
account in one lump sum
or in equal monthly installments.
ü Simple interest at the rate of 2% over and above the RD interest
rate is applicable to the loan.
ü If repaid in one lump sum, interest shall be calculated on the
amount of loan from the
date of withdrawal to the date of repayment.
ü If repaid in equal monthly installments, the amount of each
installment shall be in multiples
of ten rupees.
o
The number of installments
shall not exceed the number of months remaining for maturity of the account.
o
The interest shall be
calculated on the amount remaining unpaid at
the end of each month from the month of withdrawal of the loan.
ü Unpaid loan amount with interest, if any, can be recovered from the amount
payable at the time of the closure
of account.
ü The amount of interest recoverable on loan repaid on any one
occasion shall be rounded off to the nearest rupee.
Procedure on the minor attaining majority:
ü The minor attaining majority can continue the account for the full period.
ü If minor does not continue the account any longer, he may claim proportionate amount as specified.
ü For continuing the account, needs to furnish
a certificate as:
o
“I hereby declare that the General Rules and the National Savings Recurring Deposit Scheme, 2019 have been
read by/to me and I accept the said
rules and the scheme and all such amendments
thereto as may be issued
from time to time as binding
on me.”
The National Savings
Time Deposit Scheme,
2019 – Short Note.
ü “Year” means a period of twelve months commencing on the date of deposit
in an account.
ü Four categories of account: One year, Two year, Three year and Five year.
ü An individual may have more than one account in his name or jointly
with another.
ü A TD account
can be pledged.
Eligibility to Open Account:
ü A single adult;
ü Maximum of three adults in joint names;
ü A minor who has attained
the age of ten years;
ü A guardian on behalf of a minor or a person of unsound mind.
Deposit:
ü Only one deposit
is allowed in an account.
ü Minimum deposit: INR.1000
(or above in multiples of INR.100)
Extension of Account:
ü Account can be extended for another tenure for which the account was initially opened.
ü The rate of interest to the account in extended period will be at
the rate applicable to the scheme
as on date of maturity.
ü Account can be extended maximum
twice.
ü Account holder may exercise the option to extend at the time of opening.
ü Account holder may revoke the extension anytime before the date of repayment.
ü Account holder may exercise the option to extend account on maturity
as per the table below:
|
Sl. No. |
Category of Account |
Period from
date of repayment by which option for
extension may be exercised. |
|
1. |
One-year |
Six months |
|
2. |
Two-year |
Twelve months |
|
3. |
Three-year |
Eighteen months |
|
4. |
Five-year |
Eighteen months |
Rate of Interest:
ü Revised quarterly by MoF.
ü Interest shall be compounded on quarterly basis and payable to the account
holder at the end of each year during the period of deposit.
ü Interest is paid in whole rupee.
ü The rate applicable on the date of opening of the account shall apply till maturity.
ü If the date of payment of interest falls on a non-working day, the
payment shall be deemed to be due on the working day immediately preceding.
ü No additional interest shall be payable on the amount of interest
that has become due for payment
but not withdrawn
by the account holder.
ü The annual interest may be credited to the savings account of the
account holder at his option.
Premature Closure:
ü No premature closure allowed before expiry of six months from date
of deposit.
ü If a one-year, two-year, three-year or five-year account is
withdrawn prematurely after six
months, but before the expiry of one year from the date of deposit, interest shall be payable at the rate
applicable to Post Office Savings
Account for the completed months.
ü If a two-year, three-year or five-year account is withdrawn
prematurely after the expiry of one
year from the date of deposit, interest on such deposit shall be payable to the account holder for the completed
years and months, commencing
on the date of deposit and ending with the date of withdrawal at an interest
rate that is 2% less than the rate specified
for
a deposit of one-year, two-year or three-year. For part of a year
interest is calculated at that of Post Office Savings
Account.
|
Illustration: In case of Premature closure of a 5 year
TD Account |
||
|
1 |
For the first six months from date
of opening |
Lock up period . No PMC Allowed |
|
2 |
From Six Months to one year |
SB Rate of interest |
|
3 |
After one year but before two years |
One Year TD interest rate – 2% for completed year (Quartely compounded) Plus Savings Bank Interest for
part of the year |
|
4 |
After Two years but before three years |
Two Year TD interest rate – 2% for completed years (Quartely
compounded) Plus Savings Bank Interest for
part of the year |
|
5 |
After Three years but before four years |
Three Year TD interest rate – 2%
for completed years (Quartely compounded) Plus Savings Bank Interest for
part of the year |
|
6 |
After Four years but before five
years |
Three Year TD interest rate – 2%
for completed years (Quartely compounded) Plus Savings Bank Interest for
part of the year |
The National Savings
(Monthly Income Account)
Scheme, 2019 – Short Note.
ü “Year” means a period of twelve months commencing from the date of deposit
in the account.
ü An individual may open and operate one or more than one account as a single account or a joint account
subject to the ceiling of maximum deposit limit.
ü Maturity period is five years.
Eligibility to Open Account:
ü a single adult;
ü upto a maximum
of three adults in joint names;
ü a minor who has attained
the age of ten years;
ü a guardian on behalf
of a minor or a person of unsound mind.
Deposits and withdrawals:
ü Only one deposit
is allowed in an account.
ü Minimum deposit: INR.1000
(in multiples of INR.1000)
ü Maximum deposit:
o
4.5 lakhs rupees in a single
account.
o
9 lakhs rupees in a joint
account.
Interest on deposit:
ü Interest is paid on completion of a month from the date of deposit.
ü If the interest payable every month is not claimed, such interest
shall not earn any additional interest.
ü Interest shall be rounded off to nearest
multiple of one rupee.
ü If a deposit exceeds the specified limit, the excess amount should
be refunded to the depositor immediately.
o
This excess amount will earn interest at the Post Office Savings Account rate from from the date of deposit
of that excess amount till the end of
the month preceding the month in which the deposit has been refunded.
ü If the date of payment of monthly interest falls on Sunday or a
holiday, the payment shall be deemed
to be due on the business day immediately preceding that Sunday or a holiday.
ü If the deposit is made on 29th, 30th and 31st of a month and if
these dates do not come in the
following month, the payment of monthly interest
shall be made on the last date of the following month and if such last
day is a holiday, monthly
interest shall be paid on the preceding day.
Premature closure:
ü Only allowed one year from the date of opening.
ü If the account is closed on or before the expiry of three years, 2%
of the deposit shall be deducted.
ü If the account is closed after the expiry of three years, 1% of the
deposit shall be deducted.
Death of Account Holder:
ü In case the account holder dies before the maturity of the account,
the account may be closed and the
deposit shall be refunded along with interest upto the month preceding the month in which refund
is made.
The Senior Citizens’ Savings Scheme, 2019 –
Short Note.
ü “Year” means a period of twelve months commencing from the date of deposit
in the account.
ü More than one account may be opened subject to maximum
limit.
ü Maturity period is five years.
Eligibility to Open Account:
ü Who has attained the age of sixty years on the date of opening of the account;
ü Who has attained the age of fifty-five years or more but less than
sixty years, and who has retired on
superannuation or otherwise on the date of
opening of an account.
o
The account is opened by such individual within one month of the date of receipt
of the retirement benefits.
ü Retired personnel of Defence Services
attaining the age of fifty
years.
ü An individual may open an account in individual capacity, or jointly
with spouse.
o
There shall be no age-limit for the second
applicant.
o
The whole amount of deposit in
a joint account shall be attributable to the first account
holder only.
ü Both the spouses can open single account and joint accounts with
each other with the maximum deposit
of upto fifteen lakhs rupees in each account provided
both are individually eligible to open the account.
Deposit:
ü Only one deposit
is allowed in an account.
ü Minimum deposit: INR.1000
(in multiples of INR.1000)
ü Maximum deposit: 15 lakhs rupees.
o
For those retired on superannuation or otherwise deposits shall be restricted to the retirement benefits
received or fifteen lakh rupees, whichever is lower.
ü If a deposit exceeds the specified limit, the excess amount should
be refunded to the depositor immediately.
o
The excess amount will earn interest at the Post Office Savings Account rate from the date of deposit of
excess amount to the date of refund.
 |
Interest on deposit:
ü Interest is paid from the date of deposit to 31st March/30th
June/30th September/31stDecember on
the first working day of April/July/October/January, as the case may be, in the first
instance.
ü After interest shall be payable on first working day of April/July/October/January as the case may be.
ü Account holder can have the interest credited to his Post Office
Savings Account.
ü If the interest
is not claimed, no additional interest will be given.
ü Extended account shall earn interest at the rate applicable to SCSS
on the date of maturity.
ü Post Office Savings Account rate of interest shall be payable on
deposits in the account which are
not extended or closed on maturity or extended
maturity.
ü The interest for any period less than a quarter shall be calculated using formula:
o
Number of days in the period
x Interest for the quarter
o
Total number of days in the quarter
ü If the interest is not claimed on the due date, it can be claimed on
any date after the due date.
Premature closure:
ü
|
if closed before expiry of one year |
No
Interest |
|
If closed after one year, but before
two years |
1.5% of the deposit
shall be deducted |
|
If closed after
expiry of two
years |
1% of the deposit shall
be deducted |
|
For accounts extended after five years |
Allowed after expiry one year
from the date of extension without
any deduction |
|
Interest on the deposit shall
be payable up to the date preceding the date
of premature closure |
|
Death of Account Holder:
ü On death of the account holder before maturity or extended maturity,
the account shall be
closed and deposit refunded along with interest as applicable till
the date of the death of the account
holder, to the nominee
or the legal heirs.
ü Interest on the deposits in the account shall earn interest at the
rate applicable on Post Office
Savings Account from the date of death of the
account holder till the date of final closure of the account.
ü In case of a joint account, or where the spouse is the sole nominee,
the spouse may continue the account
on the same terms and conditions, if the spouse
meets eligibility conditions on the date of death of the account holder.
ü In case both the spouses have opened separate accounts, on death of
a spouse the account standing in
the name of the deceased shall not be continued and shall be closed.
Extension after maturity:
ü An account can be extended
only once.
ü Account may be extended for three year period, within a period of
one year from the date of maturity.
ü Irrespective of the date of application for extension, the account shall be deemed
to have been extended from the date of maturity.
ü Account may be closed anytime after one year from the date of extension without any deduction.
The Public Provident
Fund Scheme, 2019 -
Short Note.
ü “Year” means the financial year.
ü Only one account
is permitted in the name of an individual.
ü Joint account is not permitted.
ü Minimum deposit in a
year: INR.500 (in multiples of INR.50)
ü Maximum deposit in a year: 1.5 lakhs rupees.
ü Maximum limit includes deposits made in his own account and in the accounts opened by him as
guardian.
ü More than one installment in an account
in a month can be deposited.
ü Maturity period is fifteen years.
ü Amount standing to the credit of any account holder shall NOT be
liable to attachment under any
order or decree of any court in respect of any debt or liability incurred by the
account holder.
Discontinuation of account:
ü After initial deposit, if an account fails to maintain minimum
deposit in a year, it is treated
as discontinued.
ü A discontinued account may be revived during its maturity period on payment
of a fee of fifty rupees.
ü Balance in a discontinued, but not revived account shall continue to
earn interest at the PPF rate.
ü Before the closure of a discontinued account, another PPF account
cannot be opened.
ü The facilities of loan and partial withdrawal are not allowed in a discontinued account.
Interest:
ü Interest shall be eligible for a calendar month on the lowest
balance at the credit of an account
between the close of the fifth day and the end of the month.
ü Interest shall be credited to the account
at the end of each year.
ü Interest shall be credited at the end of the year irrespective of the change of the account office due to transfer of the account during the year.
Loan:
ü Loan available after the
expiry of one year from the end of the year in
which the initial
subscription was made but before expiry of five years from the end
of the year in which the initial subscription was made.
ü Only one loan in a year.
ü Loan amount is a sum of whole rupees not exceeding 25% of the amount that stood to his credit at the end of
the second year immediately preceding the year in which the loan is applied for.
ü No fresh loan is allowed
if there is an existing
one.
ü Guardian to furnish
the certificate to avail loan:
o
“Certified that the amount sought
to be withdrawn is required for the use and welfare
of Shri/Smt./Master/ Kumari…………………………….
who is a minor/ a person of unsound mind/ a person incapable of operating his account due to physical
infirmity and is alive on this……the day of…………..(month),.............................. (year).”
Repayment of loan and interest:
ü The repayment may be made either in one lump sum
or in installments.
ü The principal amount of a loan shall be repaid within thirty-six
months from the first day of the
month following the month in which the loan is
sanctioned.
ü After the principal amount of the loan is fully repaid, interest to
be paid in not more than two
monthly installments at the rate of 1% per annum of the principal for the period commencing from the first day of
the month following the month in which
the loan is drawn up to the last day of the month in which the last installment of the loan is repaid.
ü If loan is not fully repaid within a period of 36 months, interest
on the amount of loan outstanding
shall be charged at 6% per annum (instead of
at 1%) with effect from the first day of the month following the month
in which the loan was obtained, to
the last day of the month in which the loan is finally
repaid.
ü On death of the account holder, the nominee or legal heir shall be
liable to pay interest
on the outstanding loan.
Withdrawal from account:
ü Withdrawal is permitted only after five years from the end of the
year in which the account was opened.
ü Only one withdrawal is permitted in a year.
ü No withdrawal is permitted from discontinued account.
ü No withdrawal is permitted if there is an outstanding loan.
ü Maximum withdrawal amount eligible is 50% of the amount that stood
to his credit at the end of the
fourth year immediately preceding the year of
withdrawal or at the end of the preceding year, whichever is lower.
ü Guardian to furnish
the following certificate for availing withdrawal:
o
“Certified that the amount sought to be withdrawn is required for the use and welfare of Shri/Smt./Master/ Kumari…………………………….
who is a minor/ a person of
unsound mind/ a person incapable of operating
his account due to physical infirmity and is alive on this……the day of…………..(month),.............................. (year).”
Continuation of account without
deposits after maturity:
ü The account may be retained after maturity without making any
further deposits for any period and
the balance in the account will continue to earn interest
at the PPF rate.
ü One withdrawal per year is allowed of any amount
within the balance.
ü Once an account is continued without deposits for more than a year,
then it cannot be continued with deposits.
Extension of account
with deposits after maturity:
ü Account after maturity can be extended with deposits for each
further block of five years
for as many times.
ü The option of extension of account should be exercised before expiry
of one year from the maturity
of the account.
ü Account opened on behalf of a minor or a person of unsound mind may
be extended at the request
of the guardian.
ü An account holder who has given his option for the extension of the account for a period of five years shall
not have the option to withdraw his request at a later stage.
ü If the account is continued with deposits for one or more five block periods, the account holder may leave the
account without deposits on completion
of any block period and the account shall continue to earn interest
till it is closed.
ü One withdrawal per year is permitted from the extended
account.
ü The total withdrawal during the block period of five years shall not
exceed 60% of the balance
at credit at the commencement of the block period.
o
Such withdrawal may be made
either in a single or in yearly installments.
Premature closure - conditions:
ü Not allowed before
expiry of five years.
ü Only allowed on the following
conditions:
o
Treatment of life-threatening
disease of the account holder, his spouse or dependent children
or parents.
o
Higher education of the account holder,
or dependent children.
o
On change in residency
status of the account holder.
ü In PMC, interest shall be lower by 1% than the PPF rate at on the
date of opening/extension of the
account.
Death of the Account Holder:
ü The account shall
be closed.
ü The nominee or the legal heir shall not be allowed to continue the account.
ü The balance shall earn interest till the end of the month preceding the month in which the eligible balance is paid to the nominee or the legal heir.
The Sukanya Samridhi
Account Scheme, 2019 –
Short Note.
ü “Account holder” means a girl child
in whose name the account
is held.
ü “Family” means a unit consisting of a person and his spouse (both or either of whom are alive or deceased)
and their children, adopted or otherwise.
ü
“Financial year” means the
period commencing on the 1st day of April and ending on the 31st day of March of the following year.
ü “Maturity” means maturity of an account on completion of a period of
21 years from the date of its opening.
ü Birth certificate is mandatory at the time of opening
of account.
Eligibility to Open Account:
ü Guardian can open an account in the name of a girl child below 10
years of age at the date of opening.
ü Only one account
is permissible per account holder.
ü Accounts can be opened in the names of a maximum of two girl
children in one family.
o
More than two accounts may be opened, if such children are born in the first or in the second order of birth or in both,
in a family.
Deposits:
§
The above exemption shall not apply to girl child of the second order of birth, if the first order
of birth in the family results in two or more surviving
girl children.
ü Minimum initial deposit:
INR.250.
ü Subsequent deposits should
be in multiples of INR.50.
ü Minimum deposit in an account
in a financial year: INR.250.
ü Maximum total amount of deposit
in an account in a FY:
Rupees 1.5 lakhs.
o
If total deposit in excess of 1.5 lakhs in any financial year is accepted due to any accounting error,
shall not be eligible for any interest and be returned
immediately to the depositor.
ü Deposits may be made till the completion of a period of 15 years
from the date of opening of the account.
ü An account will be treated as “under default” if minimum amounthas
not been deposited.
o
An account under default may be regularized any time till completion of a period of fifteen years
from the date of opening of account
on payment of a penalty of fifty rupees for each year of default along with the minimum annual deposit in respect of the defaulted
years.
Interest on deposit:
ü The interest shall be calculated for the calendar month on the
lowest balance in the account between
the close of the fifth day and the end of the month.
ü The interest shall be credited to the account at the end of each
financial year.
ü Interest shall be credited at the end of the financial year irrespective of the change of the account office due to transfer of the account during the financial year.
Operation of account:
ü The account shall be operated by the guardian till the account
holder attains the age of eighteen years.
ü The account shall be operated by the account holder herself after
attaining age of eighteen years.
Premature closure:
ü On death of the account
holder, the account
shall be closed
immediately.
ü SB rate of interest shall be paid from date of death to date of
closure of the account.
ü PMC is allowed
in extreme compassionate grounds such as:
o
Medical support in life-threatening diseases of the account holder.
o
Death of the guardian that the
operation or continuation of the account is causing undue
hardship to the account holder.
§
No PMC on the above grounds
shall be made before completion of
five years from the date of opening of the
account.
§
Power of sanction of such PMC
is delegated to Head of Division, Senior
Postmaster, Chief Postmaster, Director.
Withdrawal:
ü Only allowed for the purpose
of education of the account
holder.
ü Withdrawal shall be allowed after the account holder attains the age
of 18years or has passed 10thstandard, whichever is earlier.
ü Withdrawal amount is maximum of 50% of the balance at the end of the FY preceding the year of application for withdrawal.
ü The withdrawal may be made in one lump sum or in installments not exceeding one per year, for a maximum of
five years subject to the ceiling mentioned above.
o
Amount of withdrawal shall be
restricted to the actual requirement on account
of fee and other charges.
Closure on maturity:
ü Maturity on completion of a period of 21 years from the date of its opening.
ü Closure may be permitted before 21 years if the account holder
making a request for reason of her intended
marriage.
o
She has to submit a declaration
duly signed on non-judicial stamp paper
attested by the notary and proof of age confirming that she will not be less than eighteen years of age on the date of marriage.
o
No such closure shall be
allowed before one month from the date of the
intended marriage or after three months from the date of marriage.
The National Savings
Certificates (VIII Issue)
Scheme, 2019 – Short Note.
ü “Year” means a period of twelve months commencing from the date of deposit
in the account.
ü Single Holder Type Account,
ü Two or three adults can open Joint A- Type Account and Joint B -
Type Account.
ü An individual may open any number of accounts.
ü Minimum deposit: INR.1000.
ü Maximum deposit: No limit. In multiples of INR.100.
ü Maturity period is five years.
ü Maturity value will be notified
by the Government from time to time.
ü An Account may be pledged
or transferred as security.
Premature closure:
ü PMC will be allowed only:
o
On the death of the account
holder in a single account, or any or all the account
holders in a joint account;
o
On forfeiture by a pledgee
being a Gazetted Officer, when the pledge is in conformity with this Scheme;
o
When ordered by a court.
ü If PMC occurs
before one year, only principal
amount shall be payable.
ü If prematurely closed after one year but before three years,
interest shall be at POSB rate.
ü If PMC occurs after three years, amount payable shall be as under:
|
PREMATURE CLOSURE VALUE OF ACCOUNT
WITH INR.1000 |
|
|
Period from the date of the account to the date of
its premature closure |
Amount payable inclusive of interest (Rupees) |
|
Three years or more, but less
than three years and six months |
1221.61 |
|
Three years and six months or
more, but less than four
years |
1263.05 |
|
Four years or more, but less
than four years and six months |
1305.90 |
|
Four years and six months or
more, but less than five
years |
1350.20 |
Transfer of account from one individual to another:
ü Account may be transferred from one individual to another, if
transferee is eligible to open a NSC Account, in the following cases:
o
On the death of account holder
in case of a single account or on the death
of all the account holders in a joint account, the amount shall be transferred to the legal
heirs or the nominees.
o
On the order of the court, the
account shall be transferred from the account
holder to the court or to any other individual as per the orders of the court.
o
On pledging.
o
In the event of the death of
any of the account holders in a joint account,
the account shall be transferred in the name of the surviving account holder or account
holders.
Payment on the death of account
holder:
ü If a nomination is in force:
o
To the surviving nominee/s.
o If nominee is minor, to appointee/guardian.
ü If no nomination in force:
o
If probate of his will or
letters of administration of his estate or a
succession certificate is not produced within six months from the death
of the depositor then,
§
if the eligible amount in the
account does not exceed Rs.5lakhs,
the authority may pay the same to any person
appearing to him as the rightful claimant and to his satisfaction to be entitled to receive the
amount, when submitted with relevant documents.
§
if amount is above Rs. 5 lakh,
shall be paid to the claimant on
submission of ‘Succession Certificate’ issued
by the court along with other relevant
documents.
ü If there are not more than three surviving nominees or legal heirs,
they may, at their option, continue
the account and receive the amount of deposit
along with interest on maturity, as if they had opened the account themselves.
o
If the account is not continued as per the above paragraph, it shall be closed and the amount of deposit
along with interest shall be paid.
ü On the death of one or two of the account holders in a joint
account, the surviving account
holder or holders, if any, shall be treated as the owner
or owners of the account and such account holder or holders may
continue the account or close the account
at their option.
The Kisan Vikas
Patra Scheme, 2019 – Short Note.
1.
“Year” means a period of twelve
months commencing from the date of deposit in the account.
2. Single Holder Type Account,
3. Two or three adults can open Joint A- Type Account and Joint B -
Type Account.
4.
An individual may open any number
of accounts.
5.
Minimum deposit: INR.1000.
6.
Maximum deposit: No limit.
In multiples of INR.100.
7.
Maturity period is 10 years and 4
months.
8.
Deposit shall double on maturity.
9.
PMC will be allowed
at any time in the following circumstances:
o
On the death of the account
holder in a single account, or any or all the account
holders in a joint account;
o
On forfeiture by a pledgee being
a Gazetted Officer,
o
When ordered by a court.
Ø On the closure of the account in such circumstances, principal amount along with simple interest
calculated at the rate applicable from
time to time to Post Office Savings Account for the complete months for which the account
has been held, shall be payable.
10.
The account holder can
prematurely close the account any time after
2 years and 6 months.
o
Proportionate interest for
completed years and half year is paid. 11.Account may be pledged
or transferred as security.
12. Account may be transferred from one individual to another.
13.
For pledging, transfer from one
individual to another, payment on death of account
holder the same operational procedures of NSC is followed.
SB/SC Claim Settlement:
Latest SB Claim Limits (Click Here)
Latest PLI/RPLI Approver Limits
|
Authority |
With Nomination Rs |
Without Nomination With legal
evidence Rs |
Without Nomination Without legal evidence Rs |
||
|
Time Scale SPM Single/ Double (SB/RD/TD/MIS) |
handed |
5000 |
5000 |
5000 |
|
|
Triple handed SPM |
SB/TD |
5000 |
5000 |
5000 |
|
|
RD/MIS |
No |
Limit |
5000 |
5000 |
|
|
All Departmental SPM NSC/KVP/SCSS/PPF/SSA |
No |
Limit |
5000 |
5000 |
|
|
LSG SPM |
SB/TD |
10000 |
10000 |
10000 |
|
|
RD/MIS |
No |
Limit |
10000 |
10000 |
|
|
SPM/DPM/PM in HSG |
SB/TD |
25000 |
25000 |
25000 |
|
|
RD/MIS |
No |
Limit |
25000 |
25000 |
|
|
MDG Post Master |
No |
Limit |
No Limit |
25000 |
|
|
HPM (Non – Gazetted)/Sr PM/CPM |
No |
Limit |
No Limit |
25000 |
|
|
DPM/Sr, PM/Dy. Chief
PM/SPO’s ( all Gazetted group-B) |
100000 |
||||
|
Chief Postmasters in HO/SSPO’s (all
Gazetted group-A) |
250000 |
||||
|
Regional Director/ Director GPO (in Mumbai
and Kolkata) |
375000 |
||||
|
Chief Postmaster General/Postmaster General (HQ and Region) |
500000 |
||||
1. For all Protected Savings Scheme in RD, sanctioning authority is
Head Postmaster,
2. For the Claim of Certificates of above Rs 5000 of Time Scale Sub
Offices based on legal evidence,
the sanctioning authority is the Divisional Head.
Protected Savings Scheme:- Conditions:
1.
Full maturity amount limited
to maturity value of Denomination of Rs. 100/-.
2.
Age of Depositor not below 18 years and not above
55 years on the date of opening.
3.
First 24 installments deposited
before Death.
4.
No loan made during first 24 months.
5.
Two years should be completed from the date of opening
of the account as on date of death
6.
Account not discontinued as on date of death.
7.
Claim should be preferred
within one year from the date of death.
|
If the
account holder has more than |
||
|
1 |
If more than one account
exists |
To the account
specified by the Depositor |
|
2 |
If no account is specified |
To the earliest qualifying account will
considered |
|
3 |
If nominees are different |
To the first eligible account |
|
|
||
|
1 |
If any defaults after 24 months |
Defaulted installments + Interest on Default deducted from the Maturity Value |
|
2 |
If any advance
deposits for the
period after death |
Repaid along with maturity value |
|
3 |
The benefits can be given to more than one account |
But Up to maturity value of denomination Rs.100 |
|
Denomination exceeds Rs 100/- for one or more
accounts |
||
|
1 |
If the Deposit + Proportionate Interest exceeds maturity value of Rs.100/- |
No benefit admissible |
|
2 |
If the Deposit
+ Proportionate Interest is less than maturity value
of Rs.100/- |
Maturity value equal
to 100 |
|
Note: PSS Maturity Value
or Claim Amount whichever is benefit to the Claimant is payable |
||
|
TD Commission to BPM |
||
|
From business procured from the jurisdiction of the BO |
||
|
1 |
TD 1 Year |
0.5 % |
|
2 |
TD 2 Year |
1% |
|
3 |
TD 3 Year |
1% |
|
4 |
TD 5 Year |
2% |
SB Commission to BPMs: 1 % of the net Accretion (Deposit-W/L) in a Fin-Year
|
SAS/MPKBY Agents
Commission |
||
|
1 |
Recurring Deposit (MPKBY) |
4% |
|
2 |
National Savings Time Deposit |
0.5% |
|
3 |
National Savings Monthly
Income Scheme |
0.5% |
|
4 |
National Savings Certificate |
0.5% |
|
5 |
Kisan Vikas Pathra |
0.5% |
