Banking - Postal Scheme

 

Savings

The Post Office savings Bank General Rules ,1981 came into force on the 1st day of  April,1982.

SB joint account can be opened by two or three adults 

Minimum age for opening of SB account by a minor himself in his name is 10 years.

  Earlier SB-3 form is used for opening of SB/RD/TD/MIS/SCSS accounts. Now all the  post offices are migrated to CBS platform and new form(AOF) is being used for this  purpose. 

SB 26 receipt is used at branch post offices for opening of SB/RD/TD/SSA accounts.

 Joint account can be opened by two or three adults.

  For Joint A accounts, all the depositors should sign in the withdrawal form. 

For Joint B accounts, any one of the depositors can sign in the withdrawal form

  In case of transfer of joint accounts, application for transfer is required to be signed by all  the depositors.  

Minimum amount to open non-cheque SB account is Rs.50/- (Minimum amount ₹ 500  for account opening-as per latest order) and for Cheque account is  Rs.500/- and Maximum : No limit 

Account can be opened by cash only 

Nomination facility is available at the time of opening of account and after opening of  account. 

Under POSB rules 1981,Nomination or cancellation or variation of a nomination shall be  registered at Head Post Office. 

Rate of interest of a SB account opened after 01.10.2018 is 4% 

Presentation of Pass Book is not necessary in case of SB cheque account. 

Withdrawal by cheque in savings accounts shall not be less than Rs.20/- 

Only one withdrawal is allowed in a day in a Branch Post Office 

Branch Postmaster can sanction SB withdrawal without prior sanction of AO up to the  amount of Rs.5000/- 

There is no fee for issue of fresh SB passbook in lieu of used one 

If the SB Passbook is lost, destroyed, stolen or spoil while in the custody of depositor,a  duplicate passbook may be issued on payment of Rs.10/- 

Head Postmaster is empowered to close an account without passbook

  KYC means Know Your Customer 

An adult can open any number of accounts , but not more than a single account in a Post  Office. 

RECURRING DEPOSIT ACCOUNT 

PORD Rules ,1981 came into force on the 1st day of April 1982. 

RD joint account can be opened by two adults only 

Minimum amount for opening of RD account is Rs.10/-  and with multiples of Rs.5/- ( Minimum amount for opening of RD account is Rs.100/-  and with multiples of Rs.10/- as per latest order)

 Maximum amount : No limit

  An individual can open any number of RD accounts. 

W.e.f 01.04.2020,interest rate for RD account is 5.8%(quarterly comounded) 

Maturity Period of RD account is 5 Years and can be continued for another 5 years on year  to year basis.

  RD account can be prematurely closed after 3 years. 

RD withdrawal is allowed after one year by not exceeding 50% of deposits. 

RD default fee is Rs.1.00 for Rs.100/-. 

Rebate is paid for payment of 6 months in advance.  

The account will be treated as discontinued if there are more than four RD month defaults. RD account will be permanently discontinued for more than 6 defaults. 

If the date of maturity of RD account is holiday then the depositor can receive the  maturity amount due on the day before the date of maturity. 

Example :-Date of maturity of a RD account is 03.01.2010.02.01.2010 and 03.01.2010 are  holidays. Then the amount due on maturity RD account will be paid to the customer on  01.01.2010. 

TIME DEPOSIT 

POTD rules came into force,1981 came into force on 1st April 1982 

TD Account can be opened by and individual and Joint account can be opened by two  adults 

Minimum deposit :Rs.100/- and in multiple thereof. ( Minimum deposit :Rs.1000/- and in multiple ₹100 )

No maximum limit Investment can be made for 1 yr,2 yrs,3 yrs and 5 years. 

W.e.f. 01.04.2020 ,interest rates are  for 1 year a/c ----5. 5% for 2 years a/c ---5.5% for 3 years a/c---5. 5% for 5 years a/c---6.7% 

Any number of accounts can be opened in any postoffice 

Premature closure is allowed after 6 months. Account can be opened in the name of minor also. 

The investment under 5 year TD qualifies for benefit of Income Tax under Section 80C  w.e.f 01.04.2007 

In CBS Post offices ,when any TD account is matured, the same TD account will be  automatically renewed for the period for which the account was initially opened .  Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate  applicable on the day of maturity will be applied 

MONTHLY INCOME SCHEME  

PostOffice MIS Rules 1987 came into force on 15th day of August 1987 

Current Rate of interest in PO MIS w.e.f 01.04.2020 is 6.6% per annum payable monthly. Maturity period is 5 years w.e.f 01.12.2011

  Minimum amount to open MIS account is Rs.100/- and with multiples of Rs.100/- there of. ( multiples of Rs.1000/- - As per latest order)

Maximum investment limit is Rs.4.5 lakhs in Single account and Rs.9 lakhs in joint  accounts. 

Any number of accounts can be opened in any post office subject to maximum limit by  adding balance in all the accounts. 

Joint account can be opened by two or three adults. 

No Bonus is admissible on the deposits made on or after 01.12.2011 

Interest can be transferred from MIS to SB account. 

If the interest payable on every month in MIS is not claimed by the depositor, such interest  will not earn additional interest. 

15 YEAR PUBLIC PROVIDENT FUND 

Public Provident Fund Scheme,1968 came into force on 1st day of July 1968. 

Current rate of interest in PPF is 7.1% per annum from the date of deposit(Compounded  yearly) 

An individual can open account with Rs.100/- but has to deposit minimum of Rs.500/-   (  An individual can open account with Rs.500/- but has to deposit minimum of Rs.500/- as per latest order)  in   a financial year and maximum of Rs.1,50,000. 

Deposits can be made in lump-sum or in 12 installments. 

Maturity period is 15 years but the same can be extended within one year of maturity for  further period of 5 years . 

Joint accounts cannot be opened. 

Premature closure is not allowed before 15 years. 

Deposits qualify for deduction from income under section 80C of IT 

Interest earned on PPF is completely tax free Loan facility is available from 3rd financial year. 

Withdrawal is allowed every year from 7th financial year from the year of opening  account. 

15 year PPF account standing at Post Office can be transferred to SBI or its subsidiaries  and vice versa. 

PPF account can be opened in a Post Office which is doubled handed and above. 

Rate of interest on amount of loan taken from PPF account that is not or is repaid only in  part within thirty six months is 6% 

Default fee for PPF account on non maintaining minimum balance is Rs.50/- 

SENIOR CITIZENS SAVINGS SCHEME 

Senior Citizens Savings Scheme Rules came into force on the 2nd day of October,2004. 

An individual of the age of 60 yeas or more may open the SCSS account.

  Rate of interest on SCSS accounts w.e.f 01.04.2020 is 7.4% per annum. 

There shall be only one deposit in SCSS account with multiples of Rs.1000/- and maximum  limit not exceeding Rs.15 lakhs. ( deposit minimum & multiple of Rs.1000/- - As per latest order)

Maturity Period is 5 years

A depositor may operate more than on account in individual capacity or jointly with  spouse. No age criteria for joint holder(Spouse) in case of joint SCSS account. 

Account can be opened by cash for amount below Rs.1,00,000 and by cheque for the  amount above Rs.1,00,000. 

Premature closure is allowed after one year on deduction of an amount equal to 1.5% of  the deposit and after 2 years 1% of the deposit. After maturity, the account can be extended for further three years within one year of the  maturity by giving application in prescribed format. 

Account can be transferred from one PO to another.Fee for transfer of SCSS account is  ----Rs.5.00 per lakh if the transfer is for the first time and the one lakh or above. ----Rs.10.00 per lakh if the transfer is for the second time. 

Fee for issue of duplicate Passbook for first time is free and for second and subsequent  times is Rs.20.00 

Fee for cancellation of nomination in respect of SCSS accounts is Rs.1.00

 Retired Defence Personnels (excluding Civilian Defence Employees) can open SCSS  accounts only on attaining the age of 50 years.Earlier there was no age restriction for those  personnel. 

SUKANYA SAMRIDDHI ACCOUNT 

Sukanya Samriddhi accounts scheme was launched by Prime Minister on 22nd January  2015. 

A legal Guardian /Natural Guardian can open the account in the name of girl child. 

Account can be opened upto the age of 10 years from the date of birth of girl child.

  A guardian can open only one account in the name of girl child and maximum of two  different girl children. 

Minimum amount for opening of SSA is Rs.250/- and subsequent deposits in multiples of  Rs.100/- (Minimum amount for opening of SSA is Rs.250/- and subsequent deposits in multiples of  Rs.50/-)  and maximum of Rs.1,50,000 in a financial year. 

Deposits can be made in lump sum and no limits on number of deposits either in a month  or in a financial year. 

Rate of interest w.e.f 01.04.2020 i 7.6% per annum. 

Partial withdrawal,maximum of 50% of the balance at the end of preceeding year is  allowed in a SSA for girl higher education and marriage after she attains 18 years of age. 

Account can be closed after completion of 21 years. 

Normal premature closure will be allowed after completion of 18 years provided that girl  is married. 

There is no nomination facility in SSA account. 

Only One withdrawal is allowed in a financial year in SSA account. 

Five withdrawals are allowed in a SSA account in its entire period.

5 Years National Savings Certificate(VIII Issue)  

NSC (VIII Issue) Rules 1989 came into force on 8th day of May,1989

Rate of interest for NSC certificates w.e.f 01.04.2020 is 6.8% compounded six monthly but  payable at maturity.INR Rs.1000/- grows Rs.1389.49/- after 5 years. 

Minimum : Rs.100/- and in multiples of Rs.100/-. No Maximum limit ( Minimum : Rs.1000/- and in multiples of Rs.100/-. No Maximum limit as per latest order) 

W.E.F 01.07.2016 ,there will be no denomination of NSC .NSC VIII Issue can be issued for  minimum of Rs.100/- and in multiples of Rs.100/-. 

NRI’s are not eligible for purchase of NSC/KVP.

  NC-4(a) is issued to the investor when certificates are not issued immediately. 

Nomination facility is available.

  More than one nominee is not allowed in respect of denomination of Rs.100/- 

All saving certificates are printed at Government of India Security Press,Nasik 

Sale of pre-printed certificates is stopped w.e.f 01.7.2016 and certificates are to be issued  in the shape of Passbooks. 

NSC Certificates can be presented at any post office for encashment. 

Any number of certificates can be purchased by the investor. 

A single holder type certificate can be purchased by, an adult for himself or on behalf of  a minor or by a minor. 

Deposits qualify for tax rebate under Sec. 80C of IT Act. 

The interest accruing annually but deemed to be reinvested under Section 80C of IT Act. 

In case of NSC VIII , transfer of certificates from one person to another can be done only  once from date of issue to date of maturity. 

At the time of transfer of Certificates from one person to another, old certificates will not be  discharged. Name of old holder shall be rounded and name of new holder shall be written on the  old certificate and on the purchase application(in case of non CBS Post offices) under dated  signatures of the authorized Postmaster along with his designation stamp and date stamp of Post  office. 

KISAN VIKAS PATRAS 

KVP Rules 1988 came into force on the 1st day of April 1988

 KVP discontinued in Dec 2011 and re-launched on 18.11.2014

  Current Interest rate is 6.9 %.Amount invested doubles in 124 months (10 years & 4 months) 

Minimum : Rs.1000/- and in multiples of Rs.1000/-. No Maximum limit ( Minimum : Rs.1000/- and in multiples of Rs.100/-. No Maximum limit as per latest order) 

W.E.F 01.7.2016 ,there will be no denomination of KVP.KVPs can be issued for minimum  of Rs.1000/- and in multiples of Rs.1000/-. 

NRI’s are not eligible for purchase of NSC/KVP. 

NC-4(a) is issued to the investor when certificates are not issued immediately. 

Nomination facility is available. 

All saving certificates are printed at Government of India Security Press,Nasik

  Sale of pre-printed certificates is stopped w.e.f 01.7.2016 and certificates are to be issued  in the shape of Passbooks. 

KVP Certificates can be presented at any post office for encashment. 

Any number of certificates can be purchased by the investor. 

Certificate can be encashed after 2&1/2 years from the date of issue.