Major changes in POSB rulings (W.e.f 12.12.2019)

Major changes in POSB rulings (W.e.f 12.12.2019)



MINISTRY OF FINANCE    (DEPARTMENT OF ECONOMIC AFFAIRS)

NOTIFICATION dated 12.12.2019
POST OFFICE SAVINGS ACCOUNT SCHEME, 2019  (w.e.f 12.12.2019)
Type of Account.- (1) An account may be opened by the following:-
(a) a single adult;
(b) two adults jointly;
(c) a guardian on behalf of a minor;
(d) a guardian on behalf of a person of unsound mind;
(e) a minor who has attained the age of ten years, in his own name:
Provided that only one account can be opened by an individual as a single account:
Provided further that an account under clause (e) can only be opened if an account under clause (c) does not exist in the name of the minor or vice versa.
Deposits and withdrawals.- (1) 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.(2) There shall be no maximum limit of deposit in an account.
(3) Withdrawals from the account for not less than fifty rupees may be made.  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.
(4) No withdrawal shall be permitted which has the effect of reducing the balance to less than five hundred rupees.
(5) In case of an account having a balance of less than five hundred rupees immediately before the commencement of this Scheme, 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 and the accounts office shall be responsible for advising the account holder through appropriate mode to make the required deposits within the specified date.



(6) If the account holder fails to make such deposit within the specified period, an account maintenance fee of one hundred rupees shall be deducted from the account on the last working day of each financial year and 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.
(7) All deposits and withdrawals shall be made in whole rupees only.
Interest on deposits in an account.-
(1) The interest at the rate of four per cent per annum shall be 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, and such interest shall be calculated and credited in the account at the end of each year.
(2) The interest shall be allowed only on sums of whole rupees and shall be rounded off to the nearest rupee and for this purpose any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.


(3) 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.
(4) 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.
(5) In the event of 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.
Issue of cheque book.- 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 Rs. two per cheque.
Opening of account.-
(1) An account may be opened by-
(a) a single adult; or
(b) upto three adults jointly;
(c) a guardian on behalf of a minor or a person of unsound mind; or
(d) a minor who has attained the age of ten years, in his own name.
(2) An individual may have more than one account in his name or jointly with another.


Deposits.- The minimum amount of monthly deposit in an account shall be one hundred rupees or any sum in multiples of ten rupees.
 Defaults in deposits.-
(1) If there are more than four defaults, the account shall be treated as discontinued and revival of the account shall be permitted only within a period of two months from the month of fourth default.
(2) Revival fee at the rate of one rupee for every hundred rupees of a defaulted instalment for each month of default (proportionate amount for other denominations) shall also be paid along with such deposit in lump sum.
Advance deposits.-
(1) In an account, deposits for not less than six monthly instalments may be made in advance in any month and rebate on such deposits shall be admissible as follows:-
Number of advance deposits
Rebate for an account of one
hundred rupees denomination
Rebate for an account of one hundred rupees denomination
Ten rupee
Twelve or more deposits made in any calendar month.
Forty rupees for every twelve deposits and ten rupees for the balance, if any, of not less than six deposits.
(2) For accounts of other denominations, the amount of rebate shall be proportionate to the rates specified in the above table.
(3) The advance deposit of six months or more will be inclusive of the month in which the deposit is made.
Current Maturity value:-  Maturity value for RD account opened on or after 12.12.2019 for denomination of Rs. 100/- is Rs. 7231.38
Repayment of full maturity value on the death of account holder in certain cases (Protected Savings Scheme).-
(1) Where the account holder in a single account or all the account holders in a joint account dies during the maturity period of an account or its extension, the legal heir or the nominee, as the case may be, of such account holder or holders, shall be entitled to receive the amount as if the account holder had paid all the sixty monthly deposits subject to the following conditions, namely:-
(i) the payment of full maturity value shall be restricted to the maturity value of an account of the denomination of one hundred rupees;
(ii) the account has not become a discontinued account;
(iii) the period from the date of opening the account to the date of death of the account holder or the surviving account holder, as the case may be, is not less than two years;
(iv) the age of the account holder or the account holders, as the case may be, at the time of opening the account was not less than eighteen years and not more than fifty-five years:
 (v) the first twenty-four monthly deposits have been made without default  provided that a defaulted instalment paid with revival fee before the death of the account holder or the surviving account holder, as the case may be, shall not be treated as default;
 (vii) no loan has been made from the account during the first 24 months;
(viii) if a loan has been availed from the account after the expiry of 24 months from the date of opening of the account, any outstanding amount of such loan and the interest due thereon shall be recovered from the amount payable.
(2) (a) If an account holder or the surviving account holder has more than one account of the denominations not exceeding Rs. 100/-, the benefit of payment shall be available in respect of all such accounts which may be specified by the account holder or the surviving account holder, as the case may be, subject to a maximum of the maturity value of an account of Rs. 100/-
(b) If an account holder or a surviving account holder has more than one account of the denominations exceeding Rs. 100/-, the benefit of payment under this paragraph shall be available in respect of only that account which may be specified by the account holder or the surviving account holder, as the case may be, subject to a maximum of the maturity value of an account of denomination of Rs. 100/-:
(3) The legal heir or nominee, as the case may be, shall on the death of the account holder or the surviving account holder, as the case may be, apply to the Accounts Office not later than one year from the date of death of such account holder and the Accounts Office shall obtain a declaration from the nominee/legal heir that he has not previously availed the benefit of the Protected Savings Scheme in respect of any account of the deceased account holder.
 (5) (a) In case of an account of denomination of more than one hundred rupees, the proportionate maturity amount which shall bear the same proportion to the full maturity value as the number of instalments deposited in the account bear to sixty shall be calculated and if the amount so calculated exceeds the full maturity value of an account of the denomination of Rs. 100/-, no benefit under this paragraph shall be admissible.
(b) If the said proportionate maturity value is less than the full maturity value of an account of Rs. 100/- denomination, then an amount equal to the maturity value of a one hundred rupees denomination shall be payable under the Protected Savings Scheme.
(6) If a deceased account holder has more than one account having denominations of less than Rs. 100/- eligible for benefit under this Scheme, but the total of their denominations exceeds Rs. 100/-, the benefit of this Scheme shall be admissible only if the combined proportionate maturity amount, of all such accounts is less than the maturity value of the account of Rs. 100/- denomination.
Loan.- (1) where an account has not become a discontinued account the account holder by making an application to the accounts office may avail the facility of loan of the amount not exceeding fifty per cent. of the deposits made in the accounts after the account has been in operation for at least one year and twelve monthly deposits have been made in the account.
(2) Simple interest at the rate of two percentage points over and above the RD interest rate applicable to the account of the loan shall be payable.
NATIONAL SAVINGS TIME DEPOSIT SCHEME, 2019 
(w.e.f 12.12.2019)
 Type of Accounts.- (1) Account can be opened by the following-
(i) a single adult;         (ii) upto a maximum of three adults in joint names;
 (iii) a minor who has attained the age of ten years;
(iv) a guardian on behalf of a minor or a person of unsound mind.
(2) An individual may have more than one account in his name or jointly with another.
Deposit and repayment.- (1) There shall be only one deposit of not less than one thousand rupees and any sum in multiples of one hundred rupees in an account.
(2) The deposit shall be repayable after the expiry of a period of one year, two years, three years or five years, as the case may be. Deposit in the account may be repaid to the account holder.
Extension of Account.-
(1) Where a deposit in an account has become due for repayment, the account holder may at his option by making an application to the accounts office in Form-3, may further extend the account for another tenure for which the account was initially opened.
(2) Where an extension is made under sub-paragraph (1), the option for extension shall be exercised as specified in the table below:
Sl No
Category of the account
Period from date of repayment by which option for extension may be exercised.
1.
One-year
Six months
2.
Two-year
Twelve months
3.
Three-year
Eighteen months
4.
Five-year
Eighteen months
.
(3) Where option of extension of deposit is exercised within the period specified in sub- paragraph (2), interest applicable to the category of account under the Scheme on the date of repayment shall be payable.
(4) The account holder shall be allowed to extend the account as per sub-paragraph (2) only twice after the initial repayment date.
(5) Option to extend the account as per sub-paragraph (1), may be exercised by the account holder at the time of opening of the account also. However, the account holder may revoke the option to extend the account any time before the date of repayment.
Rate of Interest.- (1) The rate of interest as specified in the table below shall be applicable.
Category of TD account
Interest rate
1 Year TD, 2 Year TD and 3 year TD
6.9%
5 Year TD
7.7%
 (2) If the date of payment of interest falls on a non-working day, the payment shall be deemed to be due on the working day immediately preceding.
(3) No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
(4) The annual interest may be credited to the savings account of the account holder at his option.
Premature closure of account.- Premature closure of an account shall be allowed  by the account holder subject to the following conditions:-
(a) no deposit shall be withdrawn before the expiry of six months from the date of deposit;
(b) where a deposit in a one-year, two-year, three-year or five-year account is withdrawn prematurely after six months, but before the expiry of one year from the date of deposit, interest shall be payable to the account holder at the rate applicable to Post Office Savings Account for the completed months;
(c) where a deposit in a two-year, three-year or five-year account is withdrawn prematurely after the expiry of one year from the date of deposit, interest on such deposit shall be payable to the account holder for the completed years and months, commencing on the date of deposit and ending with the date of withdrawal, and such interest shall be calculated at the rate which shall be less by two percent. points than the rate specified for a deposit of one-year, two-year or three-year, as the case may be and interest for the completed year shall be calculated on quarterly compounding basis.
Provided that if a five year Time Deposit account is closed after four years from the date of deposit, rate admissible for three-year Time Deposit account shall be applicable for calculation of interest.
(d) Any interest already paid on the deposit shall be recovered from the amount of repayment of deposit and the interest payable under this paragraph.
Opening of account.-(1) The account may be opened by: –
(i) a single adult;
(ii) upto a maximum of three adults in joint names;
(iii) a minor who has attained the age of ten years;
(iv) a guardian on behalf of a minor or a person of unsound mind.
Deposits – (1) The account shall be opened with a minimum deposit of Rs. 1000/- or any sum in multiple of Rs.1000/- and there shall be only one deposit in an account.
(2) A maximum of rupees four lakhs and fifty thousand rupees can be deposited in a single account, account and nine lakhs rupees in a joint account.
(3) Deposits in all the accounts taken together for an individual shall not exceed four lakh fifty thousand rupees in a single account and nine lakh rupees in a joint account.
Interest on deposit.- (1) The deposit made under this Scheme shall bear interest at the rate of 7.6 per cent. per annum.
 There is no change in the procedure of closure and premature close.
PUBLIC PROVIDENT FUND SCHEME 2019 (w.e.f 12.12.2019)
1. The account shall be opened with a minimum initial deposit of five hundred rupees and thereafter deposit of any sum in multiples of fifty rupees shall be made.
2. A deposit which shall not be less than five hundred rupees and not more than one lakh fifty thousand rupees in multiple of fifty rupees may be made in an account in a year.
3. Maximum limit of one lakh fifty thousand rupees by an individual shall be inclusive of the deposits made in his own account and in the account opened on behalf of the minor.
4. Interest at 7.9 per cent. per annum shall be eligible for a calendar month on the lowest balance at the credit of an account between the close of the fifth day and the end of the month.
5. Repayment of loan and interest.-   After the principal amount of the loan is fully repaid, the account holder shall pay interest thereon in not more than two monthly instalments at the rate of one per cent. per annum of the principal provided that where the loan is not repaid, or is repaid only in part, within a period of thirty-six months, interest on the amount of loan outstanding shall be charged at six percent per annum .
6. Amount standing to the credit of any account holder shall not be liable to attachment under any order or decree of any court in respect of any debt or liability incurred by the account holder.
SENIOR CITIZENS’ SAVINGS SCHME, 2019   (w.e.f 12.12.2019)
Deposit.– (1) The account shall be opened with a minimum deposit of one thousand rupees or any sum in multiples of one thousand rupees not exceeding fifteen lakh rupees:
Interest: The deposit made under Scheme shall bear interest at the rate of 8.6 per cent per annum.
Premature closure of account.- (1) The account holder may withdraw the deposit and close the account at any time  subject to the following conditions, namely:-
(i) In case, the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.
(ii) In case the account is closed after the expiry of one year but before the expiry of two years from the date of its opening, an amount equal to one and a half per cent. of the deposit shall be deducted and the balance shall be paid to the account holder.
(iii) In case the account is closed on or after the expiry of two years from the date of its opening, an amount equal to one per cent. of the deposit shall be deducted and the balance shall be paid to the account holder
SUKANYA SAMRIDDI ACCOUNT SCHEME, 2019       (w.e.f 12.12.2019)
1. Account can be opened minimum of Rs. 250/-
2. Subsequent deposit can be made in the multiples of Rs. 50/-
3. The interest shall be calculated for the calendar month on the lowest balance in the account between the close of the fifth day and the end of the month. The interest shall be credited to the account at the end of each financial year and any amount of interest in fraction of a rupee shall be rounded off to the nearest rupee.
4. Operation of account.-(1) The account shall be operated by the guardian till the account holder attains the age of eighteen years. The account shall be operated by the account holder herself after attaining age of
eighteen years by submitting necessary documents.
5. Premature closure of account.(1) In the event of death of the account holder, the account shall be closed immediately on application in Form-2, on production of death certificate issued by the competent authority and the balance at the credit of the account and interest due thereon till the date of death shall be paid to the guardian.
NATIONAL SAVINGS CERTIFICATES (VIII ISSUE) SCHEME, 2019
(w.e.f 12.12.2019)
 Type of accounts.- 
(a) Single Holder Type Account; an adult for himself or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years;
(b) Joint A- Type Account in the names of upto three adults
(c) Joint B- Type Account. in the names
Deposits.- (1) A minimum of one thousand rupees and any sum in multiples of one hundred rupees may be deposited in an account.
(2) There shall be no maximum limit for deposit in an account or in accounts held by an account holder.
.
Payment on Maturity.-
(1) The deposit shall mature on completion of five years from the date of the deposit. Amount of maturity may be repaid to the account holder
(2) The maturity value of an account opened with Rs. 1,000/- shall be One thousand four hundred sixty two rupees and fifty four paisa (Rs. 1.462.54)  and proportionate for deposits made with any other sum.  In calculation of maturity value, any amount in fraction of a rupee shall be rounded off to the nearest rupee and for this purpose, any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.
Premature closure of account.-(1) The account shall not be closed before maturity except in the following cases, namely:-
(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;
(b) on forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme;
(c) when ordered by a court.
(2) Where an account is prematurely closed under sub-paragraph (1) before the expiry of one year from the date of deposit, only principal amount shall be payable.
(3) If the account is prematurely closed under sub-paragraph (1) after the expiry of one year but before the expiry of three years from the date of deposit, the premature closure shall be allowed and on such premature closure of the account interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable.
(4) If an account is prematurely closed under sub-paragraph (1) after the expiry of three years from the date of the opening, the amount payable, inclusive of interest for a deposit of Rs. 1,000/-and at a proportionate rate for other amounts of deposits, shall be as specified in the table available in the rulings.
There is no change in procedures in respect of pledging and transfer.
KISAN VIKAS PATRA SCHEME, 2019 (w.e.f 12.12.2019)
 Type of accounts.-  
(a) Single Holder Type Account; an adult for himself or on behalf of a minor or a person of unsound mind of whom he is the guardian, or by a minor who has attained the age of ten years;
(b) Joint A- Type Account in the names of upto three adults
(c) Joint B- Type Account. in the names of upto three adults
 Deposits.- (1) A minimum of one thousand rupees and any sum in multiples of one hundred rupees may be deposited in an account.
(2) There shall be no maximum limit for deposit in an account or in accounts
 Payment on maturity.- Deposits made in the account shall double on maturity. Maturity period of an account shall be nine years and five months commencing on the date of deposit. Amount of maturity may be repaid to the account holder.
Premature closure of account.-
(1) The account may be prematurely closed by the account holder at any time before maturity under the following circumstances, namely:-
(a) on the death of the account holder in a single account, or any or all the account holders in a joint account;
(b) on forfeiture by a pledgee, being a Gazetted Officer;
(c) when ordered by a court.
(2) On the closure of the account under sub-paragraph (1), principal amount along with simple interest calculated at the rate applicable from time to time to Post Office Savings Account for the complete months for which the account has been held, shall be payable.
(3),If an account is closed any time after the expiry of two years and six months from the date of opening of the account, the amount, inclusive of interest shall be payable as specified in the table available in the rulings.
There is no change in procedures in respect of pledging, transfer and closure on maturity.
Prepared by
Shri. P.Karunanithy., B.Sc.,
Retired SPOs,
9443329681



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