Postal Assistant/ Postmen/MTS Examination – Refresh on Post Office Savings Account (SB) -16
Public Provident Fund Account (PPF)
439. What is the minimum number of deposits required in a PPF account in a financial year?
a) One b) Two c) Three d) Four Answer: a) One
440. What is the maximum number of deposits allowed in a PPF account in a financial year?
a) 10 b) 12 c) 15 d) No limit mentioned for number of deposits, but a maximum amount.Answer: d) No limit mentioned for number of deposits, but a maximum amount. (Only the total annual limit of ₹1.5 lakh is specified)
441. What is the penalty for not depositing the minimum amount in a PPF account in a financial year?
a) ₹20 b) ₹50 c) ₹100 d) ₹500 Answer: b) ₹50 (for each year of default)'
442. How is interest calculated on a PPF account for a calendar month?
a) On the highest balance between the 1st and 5th. b) On the lowest balance between the 5th and the end of the month. c) On the average daily balance. d) On the closing balance of the month.Answer: b) On the lowest balance in the account between the close of the fifth day and the end of the month.
443. What is the interest rate charged on a loan from PPF if it's repaid within 36 months?
a) 1% above the PPF interest rate. b) 2% above the PPF interest rate. c) 3% above the PPF interest rate. d) A fixed 6%.Answer: a) 1% above the PPF interest rate.
444. Can a PPF account be jointly held?
a) Yes b) No c) Only with a spouse d) Only with a minor Answer: b) No (Can only be opened by an individual, not jointly or by HUF)'
445. When can a PPF account be prematurely closed on change of residency status of the account holder?
a) After 1 year b) After 3 years c) After 5 years from the end of the year in which the account was opened. d) At any time.Answer: c) After 5 years from the end of the year in which the account was opened.
446. When a PPF account is extended after maturity, can fresh deposits be made?
a) Yes, if opted for extension with contribution. b) No, deposits are not allowed during extension. c) Only for the first 5-year block of extension. d) Only if the account was discontinued.Answer: a) Yes, if opted for extension with contribution.
Senior Citizen Savings Scheme (SCSS)
447. If an SCSS account is extended, is a new age criterion checked for the depositor?
a) Yes b) No c) Only if the extension is for more than 3 years. d) Only if the interest rate changes.Answer: b) No (The age criteria is at the time of opening or within 1 month of opening of the account. For extension, the rate applicable on the date of maturity is considered.)
448. What is the tax treatment of interest earned from an SCSS account?
a) Tax-free b) Fully taxable c) Taxable if total interest exceeds ₹50,000 in a financial year (or ₹40,000 for non-senior citizens). d) Taxable only at maturity.Answer: c) Taxable if total interest exceeds ₹50,000 in a financial year (for senior citizens) or ₹40,000 for others.
449. Can a power of attorney be used to open an SCSS account?
a) Yes b) No c) Only for medically incapacitated individuals. d) Only if the power of attorney is registered.Answer: b) No (Implied by the KYC and eligibility rules)
450. If an SCSS account is prematurely closed after 2 years but before 5 years, what percentage of the deposit is deducted?
a) 0.5% b) 1% c) 1.5% d) 2% Answer: b) 1%
Mahila Samman Savings Certificate (MSSC)
451. What is the maximum amount that can be deposited in all MSSC accounts held by an individual?
a) ₹1 lakh b) ₹1.5 lakh c) ₹2 lakh d) No maximum limit Answer: c) ₹2 lakh
452. Is a guardian allowed to open an MSSC account for a minor girl?
a) No b) Yes c) Only if the minor is above 10 years. d) Only with court approval.Answer: b) Yes
453. How is the interest for MSSC compounded and credited?
a) Annually b) Half-yearly c) Quarterly d) Monthly Answer: c) Quarterly compounded
454. What is the applicable interest rate if an MSSC account is opened in contravention of the scheme rules?
a) The scheme interest rate. b) The Post Office Savings Account interest rate. c) 2% less than the scheme rate. d) No interest.Answer: b) The Post Office Savings Account interest rate.
455. If an MSSC account is closed prematurely due to death, what is the interest rate applied?
a) The scheme interest rate for the period held. b) The PO Savings Account rate. c) No interest. d) A reduced interest rate.Answer: a) The scheme interest rate for the period held.
Post Office Time Deposit Account (TD)
456. What is the minimum period after which a TD account can be pledged as security?
a) 3 months b) 6 months c) 1 year d) 2 years Answer: b) 6 months (as premature closure is allowed after 6 months for pledge)
457. Can a TD account be converted from one tenure to another (e.g., 1-year TD to 3-year TD)?
a) Yes b) No c) Only after 1 year d) Only if the interest rate is higher Answer: b) No (Conversion between tenures is generally not allowed, closure and re-opening would be required)
458. What is the fee for pledging a TD account?
a) ₹10 b) ₹20 c) ₹50 d) Not mentioned in the document.Answer: d) Not mentioned in the document.
459. If an interest warrant for a TD account is not cashed, does it earn additional interest?
a) Yes b) No c) Only if submitted to the Post Office. d) Only if it's a large amount.Answer: b) No
460. What happens to a TD account if the depositor becomes a non-resident Indian (NRI)?
a) Continues till maturity. b) Closed, and interest paid up to the month preceding becoming NRI. c) Converted to NRI account. d) Interest rate is reduced.Answer: b) Closed, and interest paid up to the month preceding becoming NRI.
National Savings Certificates (NSC)
461. Can a Trust invest in National Savings Certificates?
a) Yes b) No c) Only registered trusts. d) Only charitable trusts.Answer: b) No (NSC is for individuals, minors, and guardians)
462. What is the denomination of NSC certificates?
a) ₹100, ₹500, ₹1,000, ₹5,000 b) ₹1,000, ₹5,000, ₹10,000, ₹25,000, ₹50,000 c) ₹1,000, ₹5,000, ₹10,000, ₹50,000, ₹1,00,000 d) ₹1,000 and multiples of ₹100.Answer: c) ₹1,000, ₹5,000, ₹10,000, ₹50,000, and ₹1,00,000.
463. Is the maturity amount of an NSC subject to TDS (Tax Deducted at Source)?
a) Yes b) No c) Only if it exceeds ₹50,000 d) Only if prematurely withdrawn Answer: b) No (The document states "TDS not deducted")
464. If an NSC is pledged as security, who is the "pledgee" that can cause premature closure?
a) Any bank b) A Gazetted officer c) Any financial institution d) The account holder's lawyer Answer: b) A Gazetted officer
465. What happens to an NSC if the account holder becomes a non-resident Indian (NRI)?
a) Continues till maturity. b) Closed, and interest paid up to the month preceding becoming NRI. c) Converted to an NRI account. d) Interest rate is reduced.Answer: b) Closed, and interest paid up to the month preceding becoming NRI.
Kisan Vikas Patra (KVP)
466. What is the primary method by which KVP certificates are issued?
a) Only physical certificates. b) E-mode (electronic) or Passbook mode. c) Only through banks. d) Online only.Answer: b) E-mode (electronic) or Passbook mode.
467. Can a KVP be transferred from one Post Office to another?
a) No b) Yes c) Only if the holder moves residence. d) Only after 1 year.Answer: b) Yes
468. What is the minimum age for a minor to purchase a KVP?
a) 5 years b) 8 years c) 10 years (as a general rule for minors operating accounts) d) KVP cannot be purchased by minors directly.Answer: c) 10 years (General rule for minor account operation)
469. Is the interest income from KVP taxable?
a) Yes, annually. b) No, it's tax-free at maturity. c) Only a portion is taxable. d) Only if withdrawn prematurely.Answer: b) No, it's tax-free at maturity. (The document states "The amount doubles in 115 months" and does not mention taxability of maturity amount which is generally tax-free)
470. Can a KVP be pledged as security to a Co-operative Society?
a) No b) Yes c) Only with government approval. d) Only for agricultural loans.Answer: b) Yes
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