Post Office Savings Bank Scheme- Latest Changes at a Glance 2019-2020
Savings Account- all about in a glance
- “Year” means a period of twelve months commencing on the 1st day of April
- Only one account can be opened by an individual as a single account.
- Single Account
- 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:
- 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.
SB: Amendments in different types 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 can not 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.
- Account not bearing interest and Basic Savings Accounts are discontinued since date of receipt of SB Order 13/2019 dtd. 18.12.2019.
SB: Deposits and Withdrawal
- What is the minimum amount to open a savings account in Post Office?
- Minimum initial deposit: INR.500.
- What is the minimum amount that can be deposit in Post Office Savings Account?
- Minimum subsequent deposit: INR.10.
- What is the maximum limit of deposit in Post Office Savings Account?
- Maximum deposit: No limit.
- What is the minimum withdrawal limit of Post Office Savings Account?
- Minimum withdrawal: INR.50.
- Can deposit or withdrawal be made in fraction of rupee?
- All deposits and withdrawals are allowed in whole rupee only.
- What is the minimum balance/low balance of Post Office Savings Account?
- No withdrawal is permitted that will reduce the balance below INR.500.
- What is the maintainace charges for Post Office Savings Account?
- From date of issue of SB order 13/2019 dated 18.12.2019, maintenance charge of Rs 100/- + 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.
SB: Maintenance of Minimum Balance
- A minimum balance of Rs 500/- has to be maintained.
- From date of receipt of SB order 13/2019 dated 18.12.2019, maintenance charge of Rs 100/- + GST @ 18% shall be deducted on the last working day of Financial Year from respective savings account if minimum balance has not been maintained irrespective of if the account is silent or not.
- The account holder shall be reminded through a notice to reactivate the account to avoid automatic closure after balance shall become NIL.
A sample of notice to be served is attached below.
SB: Interest on Deposits
- 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.
SB: Conversion of Account
- The conversion of single account into a joint account and vice versa is not allowed since date of receipt of SB order 13/2019 dated 18.12.209 as conversion of single into joint and vice versa is not allowed as per new Rule 8 of GSPR(Government Savings Promotion General Rules), 2018.
SB: Transfer of Account
- 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 can not be transferred after death of depositor or closure of account.
Savings 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 cheque leaf.
- Silent Account:
- An account becomes ‘Silent Accounts’ if no deposit or withdrawal has taken place for three complete years.
- 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.
SB: Nomination
- From date of receipt of SB Order 13/2019 dated 18.12.2019, registration of nomination is mandatory in all types of accounts including minor accounts opened through guardian.
- Nomination can be made in the name of maximum 4 individuals.
- In AOF or in application form for registration of nomination, account holder has to give following details:
- Name(s) of the nominee(s)
- Percentage share each nominee shall be entitled to.
- Whether the nominee shall receive the amount as a beneficiary with absolute or exclusive right of ownership, or as a trustee for benefit.
- In case of an account opened by a minor or on behalf of a minor or a person of unsound mind, as the case may be, the nominee shall be made by the guardian, who may nominate any individual including himself in this regard.
- In respect of such account opened before 1st April, 2018, in the event of the death of the depositor, the eligible amount shall be paid to the guardian.
SB: Nomination-Witness
- From date of receipt of SB Order 13/2019 dated 18.12.2019, 2 witness shall be taken at the time of registration, cancellation or variation of nomination in case account holder is illiterate
SB: KYC Regarding (Documents required for opening POSB Account)
ID Proof and Address Proof are required for opening of any POSB account. The OVD (official valid documents) for ID and Address proof are given below-
- From date of receipt of SB Order 13/2019 dated 18.12.2019, 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.
- Post Office has to ensure that name and address of the account holder mentioned in AOF should match with identification and Address Proof document given.
- 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.
- PAN or Form 60 (in case of the transaction amount is Rs 50000/- or above).
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