SB Order No. 11/2026: Revised HIARM Procedure Introduces Maker–Checker Controls in Finacle CBS
Department of Posts Revises Procedure for Interest Adjustment through HIARM Menu in Finacle CBS
The Department of Posts has introduced a revised procedure for processing interest adjustments through the HIARM (Interest Adjustment Register Maintenance) menu in Finacle CBS. The new procedure aims to strengthen internal controls, ensure proper segregation of duties, enhance accountability and prevent unauthorized or erroneous interest adjustments.
Download SB Order No. 11/2026 in PDF
The instructions have been issued through SB Order No. 11/2026 dated 29 September 2026 by the Financial Services Division, Department of Posts. The order modifies the earlier procedure prescribed under SB Order No. 09/2022, SB Order No. 03/2024 and Rule 61 and Para 5 of Appendix XVI of the POSB CBS Manual
Maker–Checker system introduced
A major change is the introduction of a Maker–Checker mechanism for HIARM transactions.
Under the revised procedure:
- The SBCO Supervisor of the concerned Head Office will act as the Maker.
- The CPC Supervisor of the concerned Circle will act as the Checker.
- HIARM entries will no longer be automatically verified after creation.
- The Checker will independently verify the entry before further processing.
The SBCO Supervisor can initiate HIARM entries only for accounts maintained at the concerned Head Office and its subordinate offices. Similarly, the CPC Supervisor can verify entries only for accounts falling within the jurisdiction of the concerned Circle.
Prior approval of competent authority is mandatory
Interest adjustment through HIARM can be carried out only on the basis of written approval or sanction from the competent authority.
The Head Postmaster is required to examine the case and verify the relevant records before referring the matter to the Divisional Head for approval or rejection. For accounts maintained in Gazetted Head Offices, approval will be given by the competent authority as prescribed under the existing instructions. Copies of the approval/sanction are to be forwarded to the concerned SBCO and Circle CPC through official email, while the original approval is also required to be preserved for record.
Importantly, the HIARM menu is meant only for interest adjustment. Adjustment of the principal amount through HIARM is not permitted.
Responsibilities of SBCO Supervisor
Before creating a HIARM entry, the SBCO Supervisor must verify:
- Account particulars
- Interest adjustment amount
- Applicable date
- Scheme details
- Other parameters mentioned in the sanction order
The system also introduces jurisdiction-based controls. If an account does not belong to the concerned Head Office jurisdiction, the system will reject the operation with the message “Account does not belong to the respective jurisdiction.”
Further, the SBCO Supervisor's User ID must be mapped with the concerned HO SOL ID. An attempt to operate with an incorrectly mapped User ID will generate the message “User does not belong to HO.”
A fresh HIARM entry cannot be created when an unverified entry already exists for the same account. The system will display “Unverified record exists for this account.”
₹5 lakh threshold for interest adjustment
The revised SOP specifies a system-configured threshold limit of ₹5,00,000 for an individual interest adjustment.
If the amount exceeds this limit, Finacle will display:
“The adjusted amount entered exceeds the allowed threshold limit.”
Cases requiring adjustment above the threshold are to be referred to CPRC, Chennai, through the official email along with the sanction memo and supporting documents for relaxation of the threshold parameters.
The SOP also specifies date-related validations. For SCSS and MIS accounts, only the Begin of Day (BOD) is to be entered as the applicable date. For Savings Bank Accounts, either BOD or 31 March of the previous financial year is accepted, while future dates are not permitted.
CPC Supervisor as Checker
The CPC Supervisor is exclusively responsible for verification of HIARM entries.
The CPC Supervisor is permitted to Inquire and Verify HIARM entries but cannot modify or delete them. The User ID must also be mapped to the designated Circle CPC SOL ID.
The CPC Supervisor must verify the entry against the sanction order, account details, applicable date, adjustment amount and other system validations. If everything is correct, the entry can be verified in Finacle. If a discrepancy is identified, the entry must be rejected and the reasons communicated to the Head Postmaster.
The SOP prescribes that verification should be completed within three days from the date the request is received from the concerned Head Office.
HACINT execution after verification
After successful verification, the concerned Circle CBS-CPC will execute the HACINT menu, wherever applicable.
For Post Office Savings Accounts, PPF, SSA, NSS-87 and NSS-92 accounts, execution of HACINT is mandatory for updating the account ledger. The interest adjustment will be reflected only after successful execution of HACINT.
The CBS-CPC will intimate the Head Postmaster after verification/HACINT completion. The Head Postmaster will then forward the confirmation to the SBCO Supervisor, who must record the Transaction ID in the Interest Adjustment Register and obtain the Postmaster's signature.
Strict monitoring and record preservation
The revised procedure places considerable emphasis on documentation and audit trails.
SBCO and CPC are required to preserve:
- Sanction orders
- Calculation sheets
- Official email communications
- HIARM references
- Verification details
- HACINT references
These records are required to be preserved for five years from the date of completion of the interest adjustment activity.
The SOP also states that HIARM entries are reflected in the account ledger as “Consolidated Interest Payment”. Therefore, HIARM is to be used only for genuine cases requiring interest correction and not as a routine transaction mechanism.
New HIARM Consolidated Reports
A new “HIARM Consolidated Report” has also been introduced under the HFINRPT menu in Finacle.
Two reports are available:
- HIARM Consolidated Report (Maker) – for the SBCO Supervisor
- HIARM Consolidated Report (Checker) – for the CPC Supervisor
The reports can be generated using the respective HO SET ID or Circle SET ID and are intended to support monitoring by Circle Offices, Regional Offices, Divisional Offices and CBS-CPCs.
Key system validations
The SOP provides specific error messages for various situations, including:
| Condition | Finacle Error Message |
|---|---|
| Account outside HO jurisdiction | “Account does not belong to the respective jurisdiction” |
| SBCO User mapped to another SOL | “User does not belong to HO” |
| Account outside Circle jurisdiction | “Account does not belong to the respective circle” |
| CPC User not mapped to CPC SET | “User does not belong to Circle CPC SOL ID” |
| Existing unverified record | “Unverified record exists for this account” |
| Adjustment above threshold | “The adjusted amount entered exceeds the allowed threshold limit” |
These validations are designed to restrict transactions based on jurisdiction, user mapping, pending entries and financial limits.
Interest Adjustment Register
The order also prescribes formats for maintaining the Interest Adjustment Register.
The SBCO register records details such as office/SOL ID, scheme, account number, depositor name, debit/credit amount, reason for correction, order number, transaction ID, signatures and remarks.
The CPC register records receipt date, HO/SOL ID, account number, scheme, interest amount, order details, HIARM entry date, verification date, status, HACINT date, transaction ID, reply date and CPC Supervisor's signature. The formats are provided in Annexure-I on page 9 of the order.
What has changed under SB Order No. 11/2026?
The revised system also introduces jurisdiction-based access control, enhanced validations, a ₹5 lakh threshold, mandatory HACINT wherever applicable, monitoring reports and five-year record preservation.
Conclusion
SB Order No. 11/2026 significantly strengthens the control framework for interest adjustments in POSB accounts through Finacle CBS. The introduction of Maker–Checker verification, jurisdiction-based access restrictions, system validations, defined financial thresholds, mandatory HACINT processing and structured monitoring reports provides a more controlled and auditable workflow for interest correction.
The revised SOP is effective for HIARM operations from the date of implementation and supersedes the earlier HIARM instructions to the extent covered by the new SOP. All Circles have been instructed to circulate the revised procedure to concerned offices for information, guidance and necessary action.