POSB Account Rules 2019 Short Notes | Post Office Savings Bank Account Rules Short Notes (SB/RD/MIS/TD/PPF/SSA/NSC/KVP/SCSS)
Post Office Savings Account Rules 2019.
- “Act” means The Government Savings Promotion Act, 1873 (5 of 1873)
- “General Rules” means the Government Savings Promotion General Rules, 2018
- “year” means a period of twelve months commencing on the 1st day of April
-Provided that only one account can be opened by an individual as a single account
-FORM – 1) Application for opening an account
-FORM – 2) Application for closure of account & WDL
-The account may be opened with a minimum deposit of five hundred rupees and no subsequent deposit shall be accepted for an amount less than ten rupees.
-Withdrawals from the account for not less than fifty rupees may be made by presenting pass book along with Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means.
-No withdrawal shall be permitted which has the effect of reducing the balance to less than five hundred rupees
-the account holder shall deposit the difference amount within a period of one Year from the date of commencement of this Scheme, so as to bring the balance in the account to a minimum of five hundred rupees.
-If the account holder fails to make such deposit within the specified period, an account maintenance fee of Fifty rupees shall be deducted from the account on the last working day of each financial year. After deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed and the account holder shall be notified accordingly. This provision shall be applicable to all accounts including Silent Account (Notification 9th April 2021)
-All deposits and withdrawals shall be made in whole rupees only
-No interest shall be allowed on an account for any month in which the balance at credit is below five hundred rupees at any time between the tenth and the last day of the month.
-If an account is closed during a year, interest shall be allowed upto the end of the month preceding the month in which the account is closed.
-A cheque book containing ten leaves may be issued to the account holder on an application, free of charge in a year. Subsequent issue of cheque book shall be charged at two rupees per cheque.
-There is no compulsion for seeking/obtaining copy of FIR for issuance of duplicate passbook/ certificate.
Sb12/2020 order 14/02/2020
*Only below type of saving account can be opened:
A single account
Two adults jointly
A guardian behalf of 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.
a minimum amount required for opening of saving account shall be Rs.500/- irrespective of if cheque book is required or not.
Minor account through guardian cannot be opened if that minor has already opened a savings account in any post office in his/her name.
No separate pension accounts
All other restrictions earlier mentioned for pension accounts shall not be applicable and the account shall be treated as normal saving account.
No new basic saving accounts shall be opened under this category of saving account.
Registration of nomination is mandatory in all types of accounts including minor account opened through guardian.
Nomination can be made only in the name of maximum 4 individuals.
In respect of such accounts opened before 1st April 2018, in the event of the death of the depositor, the eligible amount shall be paid to the guardian.
2 witnesses shall be taken at the time of registration, cancellation or variation of nomination in case of account holder is illiterate.
Age proof of minor should be taken as mandatory document while opening account either in the name of minor or behalf of minor by the guardian.
The cheque is not drawn for a sum less than Rs.50/-
*Post office savings account can be transferred from one post office to another on payment of prescribed fee except in the following case
After the death of the depositor
After an account has been ordered to be closed.
If pass book of depositor is lost or destroyed, he will make an application in the prescribed form (Specimen given at relevant Appendix) along with the fee of Rs.50+ GST @18% payable for the purpose being affixed on the application in the shape of Cash.
Conversion of single accounts into joint and vice versa is not allowed.
For silent account: maintenance charges of Rs.100/- +GST @18% shall be deducted on the last working day of the financial year from all the savings account which shall not maintain minimum balance of Rs.500/- irrespective of if the account is silent or not.
Cheque book upto 10 leafs in a calendar year will be issued free of any charge and thereafter a charge of Rs.2/- per cheque leaf will be deducted from account of the account holder at the time of issue of cheque book.
*Collection charges for outstation cheque:
No cheque collection charges should be charged if any cheque issued by postmaster on account of maturity of any account or certificate is treated as outstation during clearing.
*Service charges on dishonored cheques:
In case any cheque presented by any account holder of a savings account in any post office for deposit into his/her savings account or for opening of new account under any other scheme is dishonored during clearing, a service charge of Rs.100/-+ GST @18% will be debited from his savings account
In case a non-account holder presents a cheque for investment in any of the national savings scheme and that cheque is dishonored, fee Rs.100/- + GST@18% shall be collected from that personas and when he /she attends post office.
1. Who can open:
A single account
Two adults jointly
A guardian behalf of 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.
2. Deposits: Minimum INR 500/- for opening.
- Account can be opened with a minimum of Rs. 500. (Initial deposit should be in cash only)
-Subsequent deposit in multiples of Rs.10
- Maximum: - No limit from 1.12.2011.
3. Maturity period / withdrawal:
- There is no lock-in / maturity period prescribed.
4. Interest:
- Interest at the rate (s) ‘as decided by the Central Government from time to time’, is
calculated on monthly balances and credited annually.
- Interest rate applicable from 1.12.2011 4%.
5. Pass Book:
- Depositor is provided with a pass book with entries of all transactions duly stamped by
the post Office.
6. Silent Accounts:
- An account, not operated during three complete financial years, shall be treated as ‘Silent Account’.
- A service charge Rs.100/- +GST @18% per year is charged on the last day of each year until it is Reactivated.
- In a silent account from which after deduction of service charge, the balance becomes
NIL, the account stands automatically closed.
7. Final closure / withdrawal:
- Final withdrawal/ closure of account shall be allowed by Sub Postmaster/Extra departmental Sub/Branch Postmaster on obtaining sanction from Head Postmaster.
8. Tax treatment: Interest earned is Tax Free up to Rs.10000/- per year from financial year 2012-13.
*Write-off in case of excess payment of interest at the time of closureupto 5Rs.by non-gazette postmaster & Upto 10 Rs. By gazette postmaster
* Only one account can be opened on behalf of one minor by one guardian i.e either mother or father
*No subsequent deposit allowed not less than Rs 10 in saving account.
* No withdrawal shall be permitted which has the effect reducing the balance to less than 500 Rs.
* Minor cannot appoint a messenger for making withdrawal from SB account
* At the time of making a withdrawal by cheque from saving account not necessary to provide pass book
* The amount annual interest added in a saving account may not be treated as transaction in that account.
*No interest shall be allowed on an account for any month in which the balance at credit below 20/- rupees at any time between the close of the tenth day and end of the month.
* No interest shall be allowed on an account for any year in which the amount of interest for the year is less than one rupee
* In case death of the depositor interest in the account will be allowed till the end of the month preceding the month in which sanction for withdrawal of balance is issued by competent postal authority.
* The silent account can be revived by transaction and submitting an application
* In case of silent accounts in which the minimum balance below Rs 500/- a service charge of Rs Rs.50/- +GST @18% per year is debited on the last working day of the financial year
