Post Office Savings Account Scheme
• Only one account can be opened by an individual as a single account.
Single Account can be opened in the name of
• a single adult;
• a guardian on behalf of a minor;
• a guardian on behalf of a person of unsound mind;
• a minor who has attained the age of ten years, in his own name
Joint Account can be opened in the names of two adults jointly;
• The share of an individual in the balance in a joint account shall be in equal proportion.
• 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.
• Account may be continued only if account holder has no other single account, else this shall be closed
type of accounts
• There will be no difference between Savings Account opened with cheque book or without cheque book.
• An individual can open one joint savings account with any other adult individual. Provided that only one account can be opened by an individual as a single account.
• Minor account through guardian cannot be opened if that minor has already opened a SB account in any post office in his/her own name.
• Lunatic Account will be called as Savings Account opened on behalf of person of unsound mind through Guardian.
• There will be no separate Pension Account. If any Pensioner wants to get pension payment through POSB account, the Disbursing Authority has to ensure that Savings Account provided by pensioner is either a Single Savings Account in his/her name or joint account opened with his/her spouse only. No other restriction of pension account shall be applicable.
Interest, Minimum & Maximum Limit:
• Account not bearing interest and Basic Savings Accounts are discontinued since date of receipt of SB Order 13/2019 dtd. 18.12.2019.
• Minimum initial deposit: INR.500.
• Minimum subsequent deposit: INR.10.
• Maximum deposit: No limit.
• Minimum withdrawal: INR.50.
• All deposits and withdrawals are allowed in whole rupee only.
• No withdrawal is permitted that will reduce the balance below INR.500.
From date of receipt of POSA amendment dated 09.04.2021, maintenance charge of Rs 50/- + GST @ 18% shall be deducted on the last working day of Financial Year from respective savings account irrespective of if the account is silent or not. Earlier it was Rs.100/- + GST
• A minimum balance of Rs 500/- has to be maintained.
• The account holder shall be reminded through a notice to reactivate the account to avoid automatic closure after balance shall become NIL.
• Rate of interest is revised by MoF quarterly.
• 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.
• Interest shall be calculated and credited in the account at the end of each year.
• The interest shall be allowed only on sums of whole rupees.
• Any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
• If balance falls below INR.500 between the tenth and end of the month, no interest is allowed for that month.
• If an account is closed during a year, interest shall be allowed up to the previous month of the closing month.
• 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.
Conversion of accounts
• The conversion of single account into a joint account and vice versa is not allowed as per new Rule 8 of GSPR(Government Savings Promotion General Rules), 2018.
Transfer of accounts
• From date of receipt of SB order 13/2019 dated 18.12.2019, transfer of account can be done by HPO only where the account stands.
• In case account stands to a SO, it can be transferred by only that HPO in whose jurisdiction that so is working.
• If application for transfer of account along with prescribed documents is presented to any other SO or HO, the application along with documents should be sent to SO/HO where account stands (home SOL) in a service insured cover and details of such application should be entered in a register maintained in manuscript.
• Account cannot be transferred after death of depositor or closure of account.
Issue of Cheque Book:
• A cheque book of ten leaves may be issued free of charge in a year.
• Subsequent issue of cheque book shall be charged at two rupees per chequeleaf.
Silent Account:
• An account becomes ‘Silent Accounts’ if no deposit or withdrawal has taken place for three completeyears.
• Transaction is allowed only after revival of silent account.
• Credit of interest in a Silent Account shall not be treated as a transaction
Closure of Account:
• Account may be closed at any time by account holder.
Nomination
• registration of nomination is mandatory including minor accounts opened through guardian.
• Nomination can be made in the name of maximum 4 individuals.
• 2 witness shall be taken at the time of registration, cancellation or variation of nomination in case account holder is illiterate
• No witness shall be required in case of a literate depositor for this purpose.
SB KYC
• As per GSPR 2018, Identification Proof and Address Proof should be taken from one of the below mentioned officially valid documents if the account holder has not mentioned his/ her Aadhaar number details and provided the copy of same:
• The passport.
• The driving licence
• The Voter’s Identity Card issued by Election Commission of India.
• Job Card issued by MGNREGA duly signed by an officer of the SG.
• Letter issued by National Population Register.
• Age proof of minor should be taken as mandatory document while opening account either in the name of minor or on behalf of minor by Guardian.
National Savings Recurring Deposit Scheme
• An individual may have more than one account in his name or jointly with another.
• The maturity period RD Account is five years.
• Eligibility to open Account:
a single adult; upto three adults jointly;
a guardian on behalf of a minor or a person of unsound mind;
a minor who has attained the age of ten years, in his own name.
• Minimum Denomination: Rs 100/- ( or above in multiple of Rs 10).
• Denomination cannot be varied during currency of the account.
• Initial funding to be done at the time of account opening.
Subsequent Deposits:
• Account opened before 16th day of a calendar month- Subsequent deposit shall be made upto fifteenth day of each month.
• Account opened between 16th to last working day of calendar month-Subsequent deposit shall be made upto last working day of each month.
• Maximum four defaults are allowed in a RD Account.
• Upto four defaults, account holder may extend the maturity period by numbers of default months and deposit the same in extended months.
• If more than four defaults, account is treated as ‘Discontinued.’
• Revival of ‘discontinued account’ is allowed only within a period of two months from the month of the fourth default.
• Revival fee: INR.1 for every INR.100 of a defaulted instalment for each month of default
• Advance deposits cannot be made in a ‘discontinued account.’
• Can be made in any month during the currency of account i.e. at the time of opening of the account or any time thereafter.
• Minimum six-monthly instalments (for maximum five years) including the current month shall be made to be eligible for rebate.
• If the advance deposits are made for a period less than 12 months, the rebate will be that of 6 monthly advance deposits only.
• 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.
6 to 11 months deposits made in a calendar month - INR 10
12 or more deposits made in a calendar month - INR 40 Accounts may be continued beyond maturity period with or without fresh deposit.
• 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.
• The continued account may be closed at any time.
• The amount of repayment will be calculated as per the prescribed rates specified from time to time.
• If discontinued account is retained after date of maturity @ applicable to RD for completed years and @ applicable to POSB for completed months shall be paid on the maturity value on the date of maturity.
• 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.
• Repayment shall be made to the nominee or legal heirs.
• Then the amount of repayment will be calculated as per the prescribed rates specified from time to time.
• If there are upto three surviving nominees or legal heirs, they may continue the account as if their own.
• 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 Protected Savings Scheme if depositors expire, full maturity value is paid to the nominee/ legal heir.
• Benefit is restricted to 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.)
• The account has not become a discontinued account.
• The account should have completed at least two years on the date of death of depositor.
• No withdrawal should exist.
• 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.
• If more than one account of the denominations exceeding one hundred rupees benefit is given to the account specified by the depositor.
Conditions for Protected Savings Scheme:
• If no account has specified, benefit is given to the earlier account which qualifies the eligibility conditions.
• The first 24 monthly deposits have been made without default.
• 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.
• No loan has been made from the account during the first 24 months.
• 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.
• The claim should be made within a year from the date of death of the account holder.
• 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
• The Head Postmaster will settle the claim.
RD Loan or Part Withdrawal:
• The account should not be a discontinued one.
• Account should have completed minimum one year.
• Minimum of 12 monthly instalments should have been made.
• Maximum available loan amount is 50% of the balance at credit including that of advance deposits made.
• The loan amount should be a multiple of INR.10.
Conversion of minor account
• A minor attaining majority can continue the account for the full period.
• If the minor does not continue the account any longer, he may claim proportionate amount as specified.
• For continuing the account, needs to furnish a certificate as:
“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.”
Repayment
• The loan may be repaid, at any time during the currency of the account in one lump sum or in equal monthly instalments.
• Simple interest at the rate of 2% over and above the RD interest rate is applicable to the loan.
• 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.
• If repaid in equal monthly instalments, the amount of each instalment shall be in multiples of ten rupees.
• The number of instalments shall not exceed the number of months remaining for maturity of the account.
• The interest shall be calculated on the amount remaining unpaid at the end of each month from the month of withdrawal of the loan.
• Unpaid loan amount with interest, if any, can be recovered from the amount payable at the time of the closure of account.
• The amount of interest recoverable on loan repaid on any one occasion shall be rounded off to the nearest rupee
Premature Closure
• Premature Closure allowed after three years of account opening.
• Not allowed until the period for which advance deposits have been made.
• Interest at the rate of Post Office Savings Account will be paid.
MIS: SB Order 06/2020 dated 14.02.2020
National Savings Monthly Income Scheme
• Minimum Deposit: Rs 1000 or any sum in multiple of Rs 1000/-.
• There shall be only one deposit in the account.
• The depositor shall not opt for payment of interest through post dated cheque.
• An account shall continue to earn Post-maturity Interest at the rate applicable to Post Office Savings Account, till the closure of account.
Eligibility
• a single adult;
• upto a maximum of three adults in joint names;
• a minor who has attained the age of ten years;
• a guardian on behalf of a minor or a person of unsound mind
Deposits and withdrawal:
• Only one deposit is allowed in an account.
• Minimum deposit: INR.1000 (in multiples of INR.1000)
• Maximum deposit:
o 9 lakhs rupees in a single account.
o 15 lakhs rupees in a joint account
• The depositor shall not opt for payment of interest through post dated cheque.
• An account shall continue to earn Post-maturity Interest at the rate applicable to Post Office Savings Account, till the closure of account
• Interest is paid on completion of a month from the date of deposit.
• If the interest payable every month is not claimed, such interest shall not earn any additional interest.
• Interest shall be rounded off to nearest multiple of one rupee.
• If a deposit exceeds the specified limit, the excess amount should be refunded to the depositor immediately.
• This excess amount will earn interest at the Post Office Savings Account rate 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.
• 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.
• 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
• Only allowed after one year from the date of opening.
• If the account is closed on or before the expiry of three years, 2% of the deposit shall be deducted.
• If the account is closed after the expiry of three years, 1% of the deposit shall be deducted
PMC due to Death of Account Holder:
• 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 up to the month preceding the month in which refund is made.
National Savings Time deposit Scheme
• Minimum deposit: Rs 1000/- and
• Deposit shall be in multiple of Rs 100/-, only one deposit is allowed in an account.
Types of accounts:
• Single Account:
• By a single adult or
• By a minor who has attained the age of 10 years.
• A guardian on behalf of a minor or a person of unsound mind.
• Joint ‘A’ Type:
• May be opened by maximum three adults and to be operated by all the depositors or the surviving depositor/s jointly.
• Joint ‘B’ Type:
• May be opened by maximum three adults and to be operated by any of the depositors or the surviving depositors severally.
Interest & closure
• If the date of payment of interest falls on a non-working day, the payment shall be deemed to be due on the immediately preceding working day.
• No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
• Post maturity interest will be allowed till the closure of account at the rate applicable to Post Office Savings Account.
• From the date of receipt of SB order 13/2019 dated 18.12.2019 –The rate of interest on such deposit shall be payable to depositor for the completed years and months from date of deposit to the date of closure.
• The interest rate shall be 2% less than the rate specified for a deposit of 1 year, 2 year or 3 year as the case may be.
• Interest for the completed year shall be calculated on quarterly compounding basis.
• For any part of year, interest shall be payable to the account holder at the rate of Post Office Savings Account for completed months.
Premature closure of TD Accounts
5 Year TD –
• For first six months from date of opening – Lock up period No PMC allowed.
• After six months to one year – SB rate of interest
• After one year but before two years – One year TD interest rate - 2% for completed year quarterly + savings bank interest for the part of the year.
• After one year but before two years – One year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year.
• After Three years but before four years- Three year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year
• After Four years but before five years- Three year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year
Extension of TD accounts
• TD account can further be extended by an application to the account office in Form-3 for another tenure for which the account was initially opened.
• Option for extension shall be exercised as follows to avail interest applicable to the category of account under the scheme on date of maturity of original deposit:
• Period from date of repayment by which option for extension may be exercised
1. One year – six months
2. Two years – Twelve months
3. Three years – Eighteen months
4. Five years – Eighteen months
• Account can be extended only twice after initial repayment date.
• Option to extend account may be exercised at the time of opening of account and this may be revoked any time before repayment.
Sukanya Samriddhi Account (SSA) Scheme
• A special type of account for the benefit of girl child
• Birth Certificate of Girl Child is mandatory to be submitted at the time of account opening.
• Birth Certificates issued by only following authorities shall be accepted:
Municipal authority
Any office authorised to issue birth and death certificate by the Registrar or Births and Deaths.
The Indian Consulate as defined in clause (d) of sub-selection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955)
• Subsequent deposits can be made in SukanyaSamriddhi Account in multiple of Rs 50/- with minimum of Rs 250/- and maximum Rs 150000/- in a financial year.
• Subsequent deposit in an Account may be made till completion of fifteen years from date of opening of account.
• If depositor fails to deposit minimum prescribed amount in a financial year a penalty of Rs 50/- per year along with such minimum amount for year or years of default shall be deposited.
• In case of an account under default, if not regularized within 15 years of opening of account, then the whole deposit including made prior to the date of default, shall be eligible to earn interest @ applicable to the scheme till closure of the account.
• Interest rate will be notified by the Government from time to time which is presently @ 7.6% w.e.f. 01.04.2020.
• From 1st April to 31st March of each Financial Year, the interest shall be calculated for the calendar month on the lowest balance in an account on the deposits made between theclosure of 5th day and the end of month.
• The account shall be operated by the guardian till the account holder (girl child) is minor.
• After attaining majority i.e. age of 18 years, the account holder shall operate the account after submitting her KYC documents as prescribed for opening of SB account.
• Account can be transferred from one PO to another or to Bank and vice versa on payment of Rs 100/-+18% GST.
• Transfer from a CBS office to non CBS and vice versa not permitted.
• From date of receipt of SB Order 13/2019 dated 18.12.2019, registration of nomination is mandatory at the time of opening of account.
• For Accounts already opened, the account holder or guardian shall register nomination latest before maturity of the account.
• Guardian or the account holder after attaining age of majority may nominate any individual, including the guardian himself.
• Till provision of nomination made in Finacle CBS application, nomination should be registered in a Nomination Register to be maintained in manuscript as this was done before introduction of technology.
• The account shall mature on completion of twenty one years from date of opening of account.
• At the time of closure of account, payment will be made to the Girl only, in whose name the account was opened.
• The Girl has to get the account converted to her name on attaining the age of 18 years by submitting fresh identification and address documents from the list of officially valid documents mentioned for opening of Savings account.
• Closure of an account may be permitted before completion of twenty one years on application by girl for the reason of intended marriage after attaining 18 years.
• A declaration duly signed on non-judicial stamp paper attested by the notary supported with age proof confirming that the applicant will not be less than eighteen years of age on date of marriage.
• No such closure shall be allowed before one month from date of the intended marriage or after three months from date of marriage.
• In the event of death of the account holder, the account shall be closed immediately on application in Account Closure Form on production of death certificate issued by competent authority.
• The balance at the credit of the account and interest due thereon till date of death shall be paid to the guardian.
• Interest for the period between the date of death of the account holder and closure of account shall be paid @ of POSB interest for the balance held in the account.
• Premature Closure is also permissible on sanction by the Head of Division, Sr. Postmaster, Chief Postmaster, Director on extreme compassionate grounds such as:
medical support in life-threatening diseases of the account holder ordeath of the guardian that the operation or continuation of the account is causing undue hardship to the account holder
• PMC in such cases is allowed only after:
Completion of documentation establishes the grounds for such closure.
No PMC shall be made before completion of five years from date of opening.
Outstanding balance in the account with interest due @ SSA scheme shall be payable.
Senior Citizen Savings Scheme (SCSS)
• The individual may open one or more accounts in multiple of Rs 1000/- only, subject to a maximum limit of Rs 15 Lakh.
• If deposit exceeds the specified limit, excess amount (with interest @SB account) should be refunded to the depositor immediately.
• The deposits made by the depositors shall be restricted to the Retirement Benefits received by them or rupees fifteen lakh, whichever is lower.
• Deposit can be made by cash if account is opened upto Rs 1 Lakh.
Retirement Benefits means:
• Any payment due to the account holder on account of retirement on superannuation or otherwise.
• This includes Provident Fund dues, retirement or superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement, retirement cum withdrawal benefit under Employees family Pension Scheme and ex-gratia payments under a voluntary and special voluntary retirement scheme.
• Who has attained sixty years of age on date of opening of the account.
• Who has attained fifty five years or more but less than sixty years and who has retired on superannuation or otherwise on date of opening of account.
• The account is to be opened by such individual within one month from date of receiving of retirement benefits .
• Retired personnel from Defence Services (excluding Civilian Defence Employees) shall be eligible to open an account under this scheme on attaining age of fifty years subject to fulfilment of other specified condition.
•
• An individual may open this account in individual capacity or jointly with spouse.
• In joint account age of 1st account holder shall be considered to determine the eligibility.
• The account holder may withdraw the deposit and close the account at any time on an application in prescribed from subject to the following conditions, namely:
• In case, the account is closed before one year after date of opening of account, interest paid on the deposit in the account, shall be recovered from the deposit and balance shall be paid to the account holder.
• In case, account is closed after expiry of one year but before expiry of two years from date of opening, an amount equal to one and half per cent of the deposit shall be deducted and balance shall be paid.
• In case, account is closed on or after the expiry of two years from date of opening, an amount equal to one percent of deposit shall be deducted and balance shall be paid to the account holder.
• During extension period, account holder may withdraw the deposit and close the account at any time after expiry of one year from date of extension without any deduction.
• Interest on deposit shall be payable upto the date preceding the date of premature closure after deduction of specified penalty.
1. If closed before expiry of one year – No interest
2. If closed after one year, but before two years – 1.5% of the deposit shall be deducted.
3. 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
• 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.
• 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.
• 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.
• In case both the spouses have opened separate accounts, on death of a spouse the account standing in the name of the deceased account holder shall not be continued and shall be closed.
• An account can be extended only for once.
• This may be extended for a period of three years, within a period of one year from date of maturity on submission of application in Form-B.
• Irrespective of date of application for extension the account shall be deemed to have been extended from the date of maturity.
• Account may be closed at any time after one year from date of extension without any deduction.
• In case the depositor does not close the account on maturity and also does not extend the account within one year after maturity period of 5 years, the account shall be treated as matured and post maturity interest at SB rate of interest shall only be admissible for the period beyond maturity till closure of account.
• From date of receipt of SB Order 13/2019 dated 18.12.2019, registration of nomination is mandatory and should be registered as per procedure mentioned in Rule 14 of GSPR Rules, 2018.
• For existing accounts also, the account holder should be asked to register nomination latest before maturity of the account.
Public Provident Fund (PPF)
• Any individual can subscribe to Public Provident Fund on his own behalf or on behalf of a minor of who is a guardian (not as Joint).
• Deposit amount shall be in multiple of Rs 50/- not less than Rs 500/- and not more than Rs 150000/-.
• The subscriptions can be deposited in lump sum or in convenient instalments.
• More than one instalment can be deposited in a month.
• For opening of PPF account minimum Rs 500/-are required.
• PPF account can be extended after maturity with deposits within 1 year of date of maturity of original PPF account or extended PPF account by submitting application in Form-4.
• PPF account can also be retained after maturity without further deposit and earn interest @ of PPF scheme notified time to time. In this case One withdrawal in each financial is permissible.
• Deposits made in a PPF Account up to 5th of a calendar month shall be eligible for earning interest.
• Deposits may be made by cash, cheque, demand draft or by any electronic mode.
• As per SB Order No 18/2020 dated 24.04.2020- PPF scheme extended up to Single Handed Sub Post Offices.
• As per SB Order No 02/2018 dated 09.03.2018, if a resident who opened an account under PPF scheme subsequently becomes a non resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes a non- resident.
• The principal amount of loan will be repaid by the subscriber through pay-in-slip with specific remark.
• It will be credited to the loan account of the subscriber in FINACLE CBS application by using CPDTM menu.
• After principal amount is fully repaid, the subscriber shall pay interest in not more than two monthly instalments at the rate of one percent (1%) per annum of the principal for the period commencing from the first day of the month in which loan is drawn up to the last day of month in which last instalment of the loan is repaid.
• If loan is not repaid or is repaid partially, penal interest will be charged at the rate of 6% per annum.
• The penal interest on the amount of outstanding loan and any portion of the interest payable, but not repaid, will be debited to the subscriber’s loan account by contra credit to the interest head as given above.
• For this purpose, amount of interest will be withdrawn by batch process in Finacle CBS application.
• Interest on subscription shall be eligible for a calendar month on the lowest balance at the credit of an account between the close of fifth day and the end of month.
• Interest on the subscriptions made during the financial year and balance in the account shall be admissible at rates prescribed from time to time by Central Government (presently7.1%).
• Interest will be calculated by FINACLE CBS application on 31st March day end as a batch process and credited into the account on 1st April.
• Only one account can be opened by an individual as a single account.
Single Account can be opened in the name of
• a single adult;
• a guardian on behalf of a minor;
• a guardian on behalf of a person of unsound mind;
• a minor who has attained the age of ten years, in his own name
Joint Account can be opened in the names of two adults jointly;
• The share of an individual in the balance in a joint account shall be in equal proportion.
• 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.
• Account may be continued only if account holder has no other single account, else this shall be closed
type of accounts
• There will be no difference between Savings Account opened with cheque book or without cheque book.
• An individual can open one joint savings account with any other adult individual. Provided that only one account can be opened by an individual as a single account.
• Minor account through guardian cannot be opened if that minor has already opened a SB account in any post office in his/her own name.
• Lunatic Account will be called as Savings Account opened on behalf of person of unsound mind through Guardian.
• There will be no separate Pension Account. If any Pensioner wants to get pension payment through POSB account, the Disbursing Authority has to ensure that Savings Account provided by pensioner is either a Single Savings Account in his/her name or joint account opened with his/her spouse only. No other restriction of pension account shall be applicable.
Interest, Minimum & Maximum Limit:
• Account not bearing interest and Basic Savings Accounts are discontinued since date of receipt of SB Order 13/2019 dtd. 18.12.2019.
• Minimum initial deposit: INR.500.
• Minimum subsequent deposit: INR.10.
• Maximum deposit: No limit.
• Minimum withdrawal: INR.50.
• All deposits and withdrawals are allowed in whole rupee only.
• No withdrawal is permitted that will reduce the balance below INR.500.
From date of receipt of POSA amendment dated 09.04.2021, maintenance charge of Rs 50/- + GST @ 18% shall be deducted on the last working day of Financial Year from respective savings account irrespective of if the account is silent or not. Earlier it was Rs.100/- + GST
• A minimum balance of Rs 500/- has to be maintained.
• The account holder shall be reminded through a notice to reactivate the account to avoid automatic closure after balance shall become NIL.
• Rate of interest is revised by MoF quarterly.
• 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.
• Interest shall be calculated and credited in the account at the end of each year.
• The interest shall be allowed only on sums of whole rupees.
• Any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
• If balance falls below INR.500 between the tenth and end of the month, no interest is allowed for that month.
• If an account is closed during a year, interest shall be allowed up to the previous month of the closing month.
• 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.
Conversion of accounts
• The conversion of single account into a joint account and vice versa is not allowed as per new Rule 8 of GSPR(Government Savings Promotion General Rules), 2018.
Transfer of accounts
• From date of receipt of SB order 13/2019 dated 18.12.2019, transfer of account can be done by HPO only where the account stands.
• In case account stands to a SO, it can be transferred by only that HPO in whose jurisdiction that so is working.
• If application for transfer of account along with prescribed documents is presented to any other SO or HO, the application along with documents should be sent to SO/HO where account stands (home SOL) in a service insured cover and details of such application should be entered in a register maintained in manuscript.
• Account cannot be transferred after death of depositor or closure of account.
Issue of Cheque Book:
• A cheque book of ten leaves may be issued free of charge in a year.
• Subsequent issue of cheque book shall be charged at two rupees per chequeleaf.
Silent Account:
• An account becomes ‘Silent Accounts’ if no deposit or withdrawal has taken place for three completeyears.
• Transaction is allowed only after revival of silent account.
• Credit of interest in a Silent Account shall not be treated as a transaction
Closure of Account:
• Account may be closed at any time by account holder.
Nomination
• registration of nomination is mandatory including minor accounts opened through guardian.
• Nomination can be made in the name of maximum 4 individuals.
• 2 witness shall be taken at the time of registration, cancellation or variation of nomination in case account holder is illiterate
• No witness shall be required in case of a literate depositor for this purpose.
SB KYC
• As per GSPR 2018, Identification Proof and Address Proof should be taken from one of the below mentioned officially valid documents if the account holder has not mentioned his/ her Aadhaar number details and provided the copy of same:
• The passport.
• The driving licence
• The Voter’s Identity Card issued by Election Commission of India.
• Job Card issued by MGNREGA duly signed by an officer of the SG.
• Letter issued by National Population Register.
• Age proof of minor should be taken as mandatory document while opening account either in the name of minor or on behalf of minor by Guardian.
National Savings Recurring Deposit Scheme
• An individual may have more than one account in his name or jointly with another.
• The maturity period RD Account is five years.
• Eligibility to open Account:
a single adult; upto three adults jointly;
a guardian on behalf of a minor or a person of unsound mind;
a minor who has attained the age of ten years, in his own name.
• Minimum Denomination: Rs 100/- ( or above in multiple of Rs 10).
• Denomination cannot be varied during currency of the account.
• Initial funding to be done at the time of account opening.
Subsequent Deposits:
• Account opened before 16th day of a calendar month- Subsequent deposit shall be made upto fifteenth day of each month.
• Account opened between 16th to last working day of calendar month-Subsequent deposit shall be made upto last working day of each month.
• Maximum four defaults are allowed in a RD Account.
• Upto four defaults, account holder may extend the maturity period by numbers of default months and deposit the same in extended months.
• If more than four defaults, account is treated as ‘Discontinued.’
• Revival of ‘discontinued account’ is allowed only within a period of two months from the month of the fourth default.
• Revival fee: INR.1 for every INR.100 of a defaulted instalment for each month of default
• Advance deposits cannot be made in a ‘discontinued account.’
• Can be made in any month during the currency of account i.e. at the time of opening of the account or any time thereafter.
• Minimum six-monthly instalments (for maximum five years) including the current month shall be made to be eligible for rebate.
• If the advance deposits are made for a period less than 12 months, the rebate will be that of 6 monthly advance deposits only.
• 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.
6 to 11 months deposits made in a calendar month - INR 10
12 or more deposits made in a calendar month - INR 40 Accounts may be continued beyond maturity period with or without fresh deposit.
• 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.
• The continued account may be closed at any time.
• The amount of repayment will be calculated as per the prescribed rates specified from time to time.
• If discontinued account is retained after date of maturity @ applicable to RD for completed years and @ applicable to POSB for completed months shall be paid on the maturity value on the date of maturity.
• 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.
• Repayment shall be made to the nominee or legal heirs.
• Then the amount of repayment will be calculated as per the prescribed rates specified from time to time.
• If there are upto three surviving nominees or legal heirs, they may continue the account as if their own.
• 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 Protected Savings Scheme if depositors expire, full maturity value is paid to the nominee/ legal heir.
• Benefit is restricted to 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.)
• The account has not become a discontinued account.
• The account should have completed at least two years on the date of death of depositor.
• No withdrawal should exist.
• 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.
• If more than one account of the denominations exceeding one hundred rupees benefit is given to the account specified by the depositor.
Conditions for Protected Savings Scheme:
• If no account has specified, benefit is given to the earlier account which qualifies the eligibility conditions.
• The first 24 monthly deposits have been made without default.
• 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.
• No loan has been made from the account during the first 24 months.
• 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.
• The claim should be made within a year from the date of death of the account holder.
• 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
• The Head Postmaster will settle the claim.
RD Loan or Part Withdrawal:
• The account should not be a discontinued one.
• Account should have completed minimum one year.
• Minimum of 12 monthly instalments should have been made.
• Maximum available loan amount is 50% of the balance at credit including that of advance deposits made.
• The loan amount should be a multiple of INR.10.
Conversion of minor account
• A minor attaining majority can continue the account for the full period.
• If the minor does not continue the account any longer, he may claim proportionate amount as specified.
• For continuing the account, needs to furnish a certificate as:
“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.”
Repayment
• The loan may be repaid, at any time during the currency of the account in one lump sum or in equal monthly instalments.
• Simple interest at the rate of 2% over and above the RD interest rate is applicable to the loan.
• 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.
• If repaid in equal monthly instalments, the amount of each instalment shall be in multiples of ten rupees.
• The number of instalments shall not exceed the number of months remaining for maturity of the account.
• The interest shall be calculated on the amount remaining unpaid at the end of each month from the month of withdrawal of the loan.
• Unpaid loan amount with interest, if any, can be recovered from the amount payable at the time of the closure of account.
• The amount of interest recoverable on loan repaid on any one occasion shall be rounded off to the nearest rupee
Premature Closure
• Premature Closure allowed after three years of account opening.
• Not allowed until the period for which advance deposits have been made.
• Interest at the rate of Post Office Savings Account will be paid.
MIS: SB Order 06/2020 dated 14.02.2020
National Savings Monthly Income Scheme
• Minimum Deposit: Rs 1000 or any sum in multiple of Rs 1000/-.
• There shall be only one deposit in the account.
• The depositor shall not opt for payment of interest through post dated cheque.
• An account shall continue to earn Post-maturity Interest at the rate applicable to Post Office Savings Account, till the closure of account.
Eligibility
• a single adult;
• upto a maximum of three adults in joint names;
• a minor who has attained the age of ten years;
• a guardian on behalf of a minor or a person of unsound mind
Deposits and withdrawal:
• Only one deposit is allowed in an account.
• Minimum deposit: INR.1000 (in multiples of INR.1000)
• Maximum deposit:
o 9 lakhs rupees in a single account.
o 15 lakhs rupees in a joint account
• The depositor shall not opt for payment of interest through post dated cheque.
• An account shall continue to earn Post-maturity Interest at the rate applicable to Post Office Savings Account, till the closure of account
• Interest is paid on completion of a month from the date of deposit.
• If the interest payable every month is not claimed, such interest shall not earn any additional interest.
• Interest shall be rounded off to nearest multiple of one rupee.
• If a deposit exceeds the specified limit, the excess amount should be refunded to the depositor immediately.
• This excess amount will earn interest at the Post Office Savings Account rate 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.
• 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.
• 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
• Only allowed after one year from the date of opening.
• If the account is closed on or before the expiry of three years, 2% of the deposit shall be deducted.
• If the account is closed after the expiry of three years, 1% of the deposit shall be deducted
PMC due to Death of Account Holder:
• 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 up to the month preceding the month in which refund is made.
National Savings Time deposit Scheme
• Minimum deposit: Rs 1000/- and
• Deposit shall be in multiple of Rs 100/-, only one deposit is allowed in an account.
Types of accounts:
• Single Account:
• By a single adult or
• By a minor who has attained the age of 10 years.
• A guardian on behalf of a minor or a person of unsound mind.
• Joint ‘A’ Type:
• May be opened by maximum three adults and to be operated by all the depositors or the surviving depositor/s jointly.
• Joint ‘B’ Type:
• May be opened by maximum three adults and to be operated by any of the depositors or the surviving depositors severally.
Interest & closure
• If the date of payment of interest falls on a non-working day, the payment shall be deemed to be due on the immediately preceding working day.
• No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
• Post maturity interest will be allowed till the closure of account at the rate applicable to Post Office Savings Account.
• From the date of receipt of SB order 13/2019 dated 18.12.2019 –The rate of interest on such deposit shall be payable to depositor for the completed years and months from date of deposit to the date of closure.
• The interest rate shall be 2% less than the rate specified for a deposit of 1 year, 2 year or 3 year as the case may be.
• Interest for the completed year shall be calculated on quarterly compounding basis.
• For any part of year, interest shall be payable to the account holder at the rate of Post Office Savings Account for completed months.
Premature closure of TD Accounts
5 Year TD –
• For first six months from date of opening – Lock up period No PMC allowed.
• After six months to one year – SB rate of interest
• After one year but before two years – One year TD interest rate - 2% for completed year quarterly + savings bank interest for the part of the year.
• After one year but before two years – One year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year.
• After Three years but before four years- Three year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year
• After Four years but before five years- Three year TD interest rate – 2% for completed year Quarterly + savings bank interest for part of the year
Extension of TD accounts
• TD account can further be extended by an application to the account office in Form-3 for another tenure for which the account was initially opened.
• Option for extension shall be exercised as follows to avail interest applicable to the category of account under the scheme on date of maturity of original deposit:
• Period from date of repayment by which option for extension may be exercised
1. One year – six months
2. Two years – Twelve months
3. Three years – Eighteen months
4. Five years – Eighteen months
• Account can be extended only twice after initial repayment date.
• Option to extend account may be exercised at the time of opening of account and this may be revoked any time before repayment.
Sukanya Samriddhi Account (SSA) Scheme
• A special type of account for the benefit of girl child
• Birth Certificate of Girl Child is mandatory to be submitted at the time of account opening.
• Birth Certificates issued by only following authorities shall be accepted:
Municipal authority
Any office authorised to issue birth and death certificate by the Registrar or Births and Deaths.
The Indian Consulate as defined in clause (d) of sub-selection (1) of section 2 of the Citizenship Act, 1955 (57 of 1955)
• Subsequent deposits can be made in SukanyaSamriddhi Account in multiple of Rs 50/- with minimum of Rs 250/- and maximum Rs 150000/- in a financial year.
• Subsequent deposit in an Account may be made till completion of fifteen years from date of opening of account.
• If depositor fails to deposit minimum prescribed amount in a financial year a penalty of Rs 50/- per year along with such minimum amount for year or years of default shall be deposited.
• In case of an account under default, if not regularized within 15 years of opening of account, then the whole deposit including made prior to the date of default, shall be eligible to earn interest @ applicable to the scheme till closure of the account.
• Interest rate will be notified by the Government from time to time which is presently @ 7.6% w.e.f. 01.04.2020.
• From 1st April to 31st March of each Financial Year, the interest shall be calculated for the calendar month on the lowest balance in an account on the deposits made between theclosure of 5th day and the end of month.
• The account shall be operated by the guardian till the account holder (girl child) is minor.
• After attaining majority i.e. age of 18 years, the account holder shall operate the account after submitting her KYC documents as prescribed for opening of SB account.
• Account can be transferred from one PO to another or to Bank and vice versa on payment of Rs 100/-+18% GST.
• Transfer from a CBS office to non CBS and vice versa not permitted.
• From date of receipt of SB Order 13/2019 dated 18.12.2019, registration of nomination is mandatory at the time of opening of account.
• For Accounts already opened, the account holder or guardian shall register nomination latest before maturity of the account.
• Guardian or the account holder after attaining age of majority may nominate any individual, including the guardian himself.
• Till provision of nomination made in Finacle CBS application, nomination should be registered in a Nomination Register to be maintained in manuscript as this was done before introduction of technology.
• The account shall mature on completion of twenty one years from date of opening of account.
• At the time of closure of account, payment will be made to the Girl only, in whose name the account was opened.
• The Girl has to get the account converted to her name on attaining the age of 18 years by submitting fresh identification and address documents from the list of officially valid documents mentioned for opening of Savings account.
• Closure of an account may be permitted before completion of twenty one years on application by girl for the reason of intended marriage after attaining 18 years.
• A declaration duly signed on non-judicial stamp paper attested by the notary supported with age proof confirming that the applicant will not be less than eighteen years of age on date of marriage.
• No such closure shall be allowed before one month from date of the intended marriage or after three months from date of marriage.
• In the event of death of the account holder, the account shall be closed immediately on application in Account Closure Form on production of death certificate issued by competent authority.
• The balance at the credit of the account and interest due thereon till date of death shall be paid to the guardian.
• Interest for the period between the date of death of the account holder and closure of account shall be paid @ of POSB interest for the balance held in the account.
• Premature Closure is also permissible on sanction by the Head of Division, Sr. Postmaster, Chief Postmaster, Director on extreme compassionate grounds such as:
medical support in life-threatening diseases of the account holder ordeath of the guardian that the operation or continuation of the account is causing undue hardship to the account holder
• PMC in such cases is allowed only after:
Completion of documentation establishes the grounds for such closure.
No PMC shall be made before completion of five years from date of opening.
Outstanding balance in the account with interest due @ SSA scheme shall be payable.
Senior Citizen Savings Scheme (SCSS)
• The individual may open one or more accounts in multiple of Rs 1000/- only, subject to a maximum limit of Rs 15 Lakh.
• If deposit exceeds the specified limit, excess amount (with interest @SB account) should be refunded to the depositor immediately.
• The deposits made by the depositors shall be restricted to the Retirement Benefits received by them or rupees fifteen lakh, whichever is lower.
• Deposit can be made by cash if account is opened upto Rs 1 Lakh.
Retirement Benefits means:
• Any payment due to the account holder on account of retirement on superannuation or otherwise.
• This includes Provident Fund dues, retirement or superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement, retirement cum withdrawal benefit under Employees family Pension Scheme and ex-gratia payments under a voluntary and special voluntary retirement scheme.
• Who has attained sixty years of age on date of opening of the account.
• Who has attained fifty five years or more but less than sixty years and who has retired on superannuation or otherwise on date of opening of account.
• The account is to be opened by such individual within one month from date of receiving of retirement benefits .
• Retired personnel from Defence Services (excluding Civilian Defence Employees) shall be eligible to open an account under this scheme on attaining age of fifty years subject to fulfilment of other specified condition.
•
• An individual may open this account in individual capacity or jointly with spouse.
• In joint account age of 1st account holder shall be considered to determine the eligibility.
• The account holder may withdraw the deposit and close the account at any time on an application in prescribed from subject to the following conditions, namely:
• In case, the account is closed before one year after date of opening of account, interest paid on the deposit in the account, shall be recovered from the deposit and balance shall be paid to the account holder.
• In case, account is closed after expiry of one year but before expiry of two years from date of opening, an amount equal to one and half per cent of the deposit shall be deducted and balance shall be paid.
• In case, account is closed on or after the expiry of two years from date of opening, an amount equal to one percent of deposit shall be deducted and balance shall be paid to the account holder.
• During extension period, account holder may withdraw the deposit and close the account at any time after expiry of one year from date of extension without any deduction.
• Interest on deposit shall be payable upto the date preceding the date of premature closure after deduction of specified penalty.
1. If closed before expiry of one year – No interest
2. If closed after one year, but before two years – 1.5% of the deposit shall be deducted.
3. 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
• 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.
• 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.
• 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.
• In case both the spouses have opened separate accounts, on death of a spouse the account standing in the name of the deceased account holder shall not be continued and shall be closed.
• An account can be extended only for once.
• This may be extended for a period of three years, within a period of one year from date of maturity on submission of application in Form-B.
• Irrespective of date of application for extension the account shall be deemed to have been extended from the date of maturity.
• Account may be closed at any time after one year from date of extension without any deduction.
• In case the depositor does not close the account on maturity and also does not extend the account within one year after maturity period of 5 years, the account shall be treated as matured and post maturity interest at SB rate of interest shall only be admissible for the period beyond maturity till closure of account.
• From date of receipt of SB Order 13/2019 dated 18.12.2019, registration of nomination is mandatory and should be registered as per procedure mentioned in Rule 14 of GSPR Rules, 2018.
• For existing accounts also, the account holder should be asked to register nomination latest before maturity of the account.
Public Provident Fund (PPF)
• Any individual can subscribe to Public Provident Fund on his own behalf or on behalf of a minor of who is a guardian (not as Joint).
• Deposit amount shall be in multiple of Rs 50/- not less than Rs 500/- and not more than Rs 150000/-.
• The subscriptions can be deposited in lump sum or in convenient instalments.
• More than one instalment can be deposited in a month.
• For opening of PPF account minimum Rs 500/-are required.
• PPF account can be extended after maturity with deposits within 1 year of date of maturity of original PPF account or extended PPF account by submitting application in Form-4.
• PPF account can also be retained after maturity without further deposit and earn interest @ of PPF scheme notified time to time. In this case One withdrawal in each financial is permissible.
• Deposits made in a PPF Account up to 5th of a calendar month shall be eligible for earning interest.
• Deposits may be made by cash, cheque, demand draft or by any electronic mode.
• As per SB Order No 18/2020 dated 24.04.2020- PPF scheme extended up to Single Handed Sub Post Offices.
• As per SB Order No 02/2018 dated 09.03.2018, if a resident who opened an account under PPF scheme subsequently becomes a non resident during the currency of the maturity period, the account shall be deemed to be closed with effect from the day he becomes a non- resident.
• The principal amount of loan will be repaid by the subscriber through pay-in-slip with specific remark.
• It will be credited to the loan account of the subscriber in FINACLE CBS application by using CPDTM menu.
• After principal amount is fully repaid, the subscriber shall pay interest in not more than two monthly instalments at the rate of one percent (1%) per annum of the principal for the period commencing from the first day of the month in which loan is drawn up to the last day of month in which last instalment of the loan is repaid.
• If loan is not repaid or is repaid partially, penal interest will be charged at the rate of 6% per annum.
• The penal interest on the amount of outstanding loan and any portion of the interest payable, but not repaid, will be debited to the subscriber’s loan account by contra credit to the interest head as given above.
• For this purpose, amount of interest will be withdrawn by batch process in Finacle CBS application.
• Interest on subscription shall be eligible for a calendar month on the lowest balance at the credit of an account between the close of fifth day and the end of month.
• Interest on the subscriptions made during the financial year and balance in the account shall be admissible at rates prescribed from time to time by Central Government (presently7.1%).
• Interest will be calculated by FINACLE CBS application on 31st March day end as a batch process and credited into the account on 1st April.
Please check the correct and current interest rates for all the schemes and make suitable alterations
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