GDS BPM Incentive Scheme 2026 – Complete Guide on TD & Savings Account Commission

GDS BPM Incentive Scheme 2026 – Complete Guide on TD & Savings Account Commission

The Department of Posts has introduced various incentive schemes for GDS Branch Postmasters (BPMs) to encourage mobilization of Small Savings in rural areas. These incentives are mainly provided for opening Time Deposit (TD) accounts and for increasing Savings Account net accretions in Branch Post Offices.

Incentive on Post Office Time Deposit (TD) Accounts

Under the scheme, GDS BPMs are eligible for commission based on the type of Time Deposit account opened.

Commission Rates for TD Accounts

Type of TD AccountIncentive Rate
5-Year TD Account2%
2-Year / 3-Year TD Account1%
1-Year TD Account0.5%

Important Conditions for TD Incentive

The Department has laid down certain important rules regarding payment of commission:

  • No commission will be paid if agency commission has already been paid under the Standardized Agency System.

  • BPMs cannot claim agent commission separately for the same deposits.

  • No incentive is payable on redeposit or extension of TD accounts.

  • Incentive is payable only when the depositor’s address falls within the delivery jurisdiction of the concerned BO.

  • Incentive is available irrespective of the mode of deposit.

Procedure for Claiming TD Incentive

The GDS BPM must prepare a monthly bill on the first day of every month and submit it to the Account Office/Head Office through the BO Daily Account. The bill should contain:

  • TD Account Number

  • Category of account

  • Deposit amount

  • Rate of commission

  • Commission claimed

The concerned PA/SPM/APM verifies the entries through Finacle before passing the bill for payment.

After verification:

  • Payment is made to the BPM.

  • The amount is entered under the head “Payment of commission to GDS/Branch Postmaster”.

  • Proper records are maintained to avoid duplicate claims.

Incentive on Savings Account Net Accretions

Apart from TD incentives, BPMs are also eligible for commission on Savings Account growth.

Rate of Incentive

A commission of 1% is payable on annual net accretions of Savings Accounts, provided the net accretion is ₹500 or more.

What is “Net Accretion”?

Net accretion means:

Total deposits minus total withdrawals during the financial year.

If net accretion is below ₹500, no incentive will be paid.

Key Rules for Savings Incentive

Deposits Considered

Only deposits made in the Branch Office where the account stands are considered, including:

  • Cash deposits

  • Cheque deposits

  • Deposits through withdrawal forms

Deposits NOT Considered

The following are excluded:

  • Deposits made in Account Offices or other offices

  • Deposits through IPPB

  • Internet Banking deposits

  • Mobile Banking deposits

Withdrawals Considered

All withdrawals are counted, including:

  • ATM withdrawals

  • IPPB transfers

  • Internet Banking withdrawals

  • Mobile Banking withdrawals

  • Withdrawals from other offices

Special Rule for March

  • Deposits made in March are ignored.

  • Withdrawals made in March are included.

Procedure for Claiming Savings Incentive

The BPM should prepare the annual incentive bill in April for the previous financial year and send it to the Account Office.

The Account Office will:

  • Verify deposits from BO summaries

  • Generate withdrawal details from CSI SAP using TCode FAGLL03

  • Calculate net accretions

  • Pass the bill for payment

Registers and Record Maintenance

To avoid duplicate claims and ensure transparency, the following records are maintained:

  • Register of incentive bills

  • Deposit verification register

  • Withdrawal verification register

  • Payment schedules

Expenditure Head for Incentive Payment

The total expenditure on these incentive schemes is borne by the Ministry of Finance under:

“Commission paid to GDS BPMs for mobilising Small Savings”

Conclusion

The GDS BPM Incentive Scheme plays a vital role in encouraging rural savings mobilization through Post Offices. By promoting TD accounts and increasing Savings Account balances, BPMs contribute significantly to the Small Savings movement while also earning attractive incentives for their efforts.

The scheme also ensures transparency through proper verification, accounting, and record maintenance procedures. 

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