SB Order No. 05 / 2024 No. FS-113-03/2024 Government of India Ministry of Communications Department of Posts (Financial Services Division) Dak Bhawan, New Delhi - 110001 Dated: 21.08.2024
Subject: Guidelines for regularization of accounts opened in deviation of Rules stipulated under National Small Savings Schemes.
Department of Economic Affairs. Ministry of Finance has issued guidelines for processing the cases of regularization of irregularly opened accounts under various National Small Savings Schemes through Post Offices vide OM. No. 14/1/2018-NS-Part (1) dated 12.07.2024. (Copy enclosed)
2. It needs to be noted that the power to regularise irregular small
savings accounts is vested with Ministry of Finance. Therefore, all cases
pertaining to irregular accounts should be forwarded to this division for
regularisation by the Ministry of Finance.
3. Following six categories have been identified Relevant guidelines
issued by DEA, MoF are as below:
(1). Irregular NSS accounts: These have been assessed to be of the following
types.
(a). Two NSS-87 accounts opened prior to DG Posts’ Order. No. 35- 19/90-SB- Ill dated 02.04.1990:
(i). The earliest/first opened account will get prevailing scheme
rate.
(ii). The second account (opened after the first account) will get
prevailing POSA rate plus 200 bps on the outstanding balance.
(iii). Points (i) and (ii) will be subject to the following conditions:
(a). Cumulative deposits in both the accounts put together should not
exceed the applicable deposit limits for each year.
(b). Excess deposits (if any) shall be refunded to the investor without any interest.
(v). From 1 Oct 2024 onwards,
both the accounts will earn zero percent rate of interest.
(b). Two NSS-87 accounts opened after DG Posts’ Order. No. 35- 19/90-SB-Ill
dated 02.04.1990:
(i). The earliest/ first opened account will get the prevailing
scheme rate.
(ii). The second account (opened after the first account) will get prevailing POSA rate on the outstanding balance.
(iii). Points (i) and (ii) are subject to the following conditions:
(a). | Cumulative deposits in both accounts together should not
exceed the applicable deposit limit for each year.
(b). Excess deposits (if any) shall be refunded without any interest
to the investor.
(iv). Points (i) to (iii) are in the nature of one-time special
dispensation to the investors of NSS-87 till 30 September 2024 from the date of
OM dated
(v). From 1 Oct 2024 onwards,
both the accounts will earn zero percent rate of interest.
(c). In case of more than two NSS-87 accounts Principles outlined for two accounts opened before/after DG Posts’ Order. No. 35-19/90-SB-III dated 02.04.1990, shall apply. For the third account’ more irregular accounts, no interest shall be paid and the principal amount shall be refunded to the investor. shall get zero percent rate of interest from 1 October 2024.
(2) PPF account opened under the name of a minor:
(a). POSA interest shall be paid for such irregular accounts until
the individual (minor) becomes eligible for opening of account, that is, the
individual attains 18 years of age. Thereafter, the applicable interest rate
will be paid.
(b). Maturity period for such accounts will be calculated from the
date the minor becomes an adult, that is, the date from which the individual
becomes eligible to open the account.
(3) More than one PPF Account:
(a). The primary account shall earn the scheme rate of interest subject to the deposit being within the ceiling applicable for each year. (Primary Account is one of the two accounts chosen by the investor in any Post Office/ agency bank where the investor prefers to continue with the account upon regularisation).
(b). The balance amount in the second account shall be merged with the first account subject to the primary account remaining within the applicable investment ceiling in each year. Post-merger, the primary account will continue to enjoy the prevailing scheme rate of interest. Excess balance in the second account, if any, shall be refunded with Zero percent rate of interest.
(c). Any additional accounts beyond the primary and second account, shall
earn zero percent rate of interest from the date of opening of that account.
(4) Extension of PPF account by NRI:
For only those active NRI's PPF accounts opened under the Public Provident
Fund Scheme (PPF), 1968, where Form H did not specifically ask the residency
status of the account holder, POSA rate of interest shall be given to the account
holder (Indian citizen who became NRI during the currency of Account) till 30th
September 2024. Thereafter, the said account shail earn zero percent rate of interest.
(5). Small Savings scheme account opened under the name of a minor (except PPF and SSA): Such irregular accounts may be regularised with simple interest. The interest rate for calculation of simple interest on the account should be the prevailing POSA rate.
(6). Regularization of Sukanya Samriddhi Account (SSA) opened by Grandparents,
other than Guardian:
(a). In case of accounts opened under the guardianship of grandparents (who are other than legal guardian), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian.
(b). If more than two accounts are opened in a family in violation
of Para 3 of Sukanya Samriddhi Account Scheme, 2019, then the irregular
accounts shall be closed by treating it as account opened in contravention to
the scheme guidelines.
4. All Post Offices are directed to obtain PAN and Aadhaar details
of the account holder(s)/ guardian (if not already available) without fail and
feed the same in the system before forwarding the regularization requests to
this office.
5. All Post Offices shall take urgent action to identify such accounts and inform account holders of the approved guidelines through all channels.
6. All Circles/Regions/Divisions are requested to proactively track cases that need regularization, so as to avoid inconvenience to account holders of the small savings schemes.
7 . It is reiterated that the power to regularize irregular small
savings accounts is vested with Ministry of Finance only, hence alt cases of regularizing
irregular accounts should be forwarded to this Division for onward submission
to the Ministry of Finance.
8. Only on receipt of the concurrence ofBudget Division, DEA, Ministry of Finance for regularization of irregularly accounts opened under various National Small Savings Schemes, the Post Offices shall settle those accounts following the above guidelines.
9. This may be circulated to all the Offices for information and
necessary action. Wide publicity may be gwen through all available means and it
may also be exhibited on Notice Boards of all Post Offices.
10. This issues with the approval of competent authority.
