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THE POST OFFICE SAVINGS ACCOUNTS RULES, 1981

 GSR 663 (E) In exercise of the powers conferred by section 15 of the Government Savings Bank Act, 1873 (5 of 1875), the Central Government hereby makes the following rules, namely:-

  1.   Short title and commencement:- (1) These rules may be called the Post Office Savings Account Rules, 1981.

  2. Definitions:- In these rules, unless the context otherwise requires:-

     (a)             ‘Account’ means a savings account;

     (b)        ‘Deposit’ means the money deposited by the depositor in an account under the rules.       

    (c)        ‘Depositor’ means an individual who-

    (i)               on his own behalf, or

    (ii)              on behalf of a minor or a person of unsound mind of whom he is the guardian deposits money in an account under the rules.           

    (d)        ‘Year’  means a year commencing on the 1st day of April.

     

    (a)             Words and expression used herein and not defined but defined in the Post Office Savings Bank General Rules, 1981 shall have the meanings respectively assigned to them in those rules.

     

  3. Application of the Post Office Savings Bank General Rules, 1981 :- For matters not provided in these rules, the provisions of the Post Office Savings Bank General Rules, 1981 shall apply.

     

  4. Types of Savings Accounts and matters connected therewith:- The types of accounts, the persons by whom such accounts may be opened and operated upon, maximum amount that can be credited to the account and other matters connected therewith shall be as specified in the Table below, namely:-

     

    T A B L E

    Type of Account

    Who may open

    Maximum balance excluding interest for the current year

    Number of Accounts that can be opened

    Who may operate the account

    1

    2

    3

    4

    5

    A. INDIVIDUAL ACCOUNTS

     

     

     

     

    1. Single Account

    (a) A person who has attained the age of majority and who is of sound mind (hereinafter referred to as an adult)

    Without limit

    Any number of accounts but not more than one account at one Post Office Savings Bank.

    “(a) The adult: or

    (b) An illiterate adult through a literate agent nominated by him or her: or

    (c) A blind or otherwise physically handicapped adult either directly or through a literate agent nominated by him or her.”

    (b) A minor who has attained the age of 10 years.

    Without limit

    One

    The minor

    (c) A guardian on behalf of a minor

    Without limit

    One on behalf of each minor

    The guardian during the minority of the minor and thereafter the ex-minor.

    (d) (i) A guardian of a person of unsound mind.

      (ii) The Superintendent of the Mental Hospital where a person of unsound mind is confined.

    Without limit

    One on behalf of each person of unsound mind.

     

    One on behalf of each person of unsound mind.

    The guardian

     

     

    The Superintendent of the Mental Hospital.

    (e) Deleted vide GSR 882(E) dated 3.11.2010 vide MOF(DEA) F.No.7/12/2005-NS-II

    Explanatory note from Author:- All Single Savings Account opened by an authority controlling a Provident Fund, Superannuation Fund or Gratuity Fund on behalf of its individual members should be  closed with interest up to 31.10.2010 and balance should be refunded to the concerned authority. (SB Order No. 21/2010 dated 26.11.2010)

     

    2. Joint Account

    (i) A-Type, that is to say, payable to the depositors jointly or to two survivors jointly or to the sole survivor.

     

    (ii) B-Type, that is to say, payable to any one of the depositors or the either of two survivors or to the sole survivor.

    Two or three adults

    Without limit

    Any number of accounts but not more than one joint account at one Post Office Savings Bank

    All the depositors or both the survivors or the sole survivor as the case may be.

    Two or three adults

    Without limit

    Any number of accounts but not more than one joint account at one Post Office Savings Bank

    One of the depositors or either of the two survivors or the sole survivor, as the case may be.

    .Pension Account

     

    A pensioner Individually or jointly with his or her spouse in whose favour an authorization for family pension exists in the Pension Payment Order.

    Without limit

    One

    (a) The Head Savings Bank or Sub-Savings Bank for,

    (i)  crediting to the Pension Account the amount of pension due to the pensioner.

    (1) where the amount relates to the month of March, on the first working day of April.

    (2) Where the amount relates to any other month, on the last working day of the relevant month; and

    (ii) for recovering any amount credited in excess of the sum to which the pensioner was entitled.

    (b) The pensioner, for making withdrawals.

    Note:-  The Post Office Saving Account in case of individual Accounts shall be opened after proper introduction of the depositor.

     

    4.         Sanchayika Accounts: - Keeping in mind the recent amendment to the Government Savings Bank Act, 1873 whereby investment by all juridical persons in various small savings schemes has been discontinued with effect from 13th May, 2006, it has been decided to make the following modification with regard to the operation of the ‘Sanchayika’ scheme under which children in schools/colleges are encouraged to save through a savings bank set up in the school/college. In lieu of the present system whereby the savings of the students are deposited by the Sanchayika (School/college Savings Bank) in a post office savings account in the name of the Sanchayika itself, fresh account under the scheme may be opened or the existing account may be commuted in the name of the principal/teacher and two students not less than 10 years of age. These accounts will be designated as ‘Sanchayika’ accounts and will be opened and operated by the three individual depositors jointly. In case any of the depositors leave the school, their name would be substituted by others with the authorization of the Principal. The account would be supported by a copy of the resolution establishing the Sanchayika as hitherto fore.

     

    Note:- Only one Sanchayika account will be opened for each school or college. There will not be any limit of maximum balance in the account. The balances in the account will earn interest at the rate applicable to individual savings accounts.

               

    Note 1:- For the purpose of maximum balance the depositor’s share in the balance of a joint account shall be taken as one half or one third of such balance according as the account is held by two adults or three adults.

     

    Note 2:- An account standing in the name of a minor under item 1(b) or (c) of the Table, shall on his attaining the majority, be treated in all respects an account opened by an adult under item(1)(a) of the Table.

               

    Note 3:- Under item 1 (c) or (d) of the Table only one account can be opened in respect of a minor or a person of unsound mind as the case may be.

     

    Note 4:- A joint account in the names of two adults may be opened in addition to a single account and pension account held by either or both of the depositors in the same of another Post Office Savings Bank. If one of the depositors dies, the joint account shall, as from the date of death of such depositor, be deemed to be a single account in the name of the surviving depositor. If he is already having a single account in his name in the same Post Office Savings Bank, one of the two accounts shall be closed.

     

    Note 5:-          A joint account in the names of three depositors may be opened in addition to a single account and pension account held by any or all of the depositors in the same or another Post Office Savings Bank. If one of the depositors dies, the joint account shall, as from the date of death of such depositor, be deemed to be a single account in the name of the surviving depositors. If they are already having a joint account in their names in the same Post Office Savings Bank, one of the two accounts shall be closed. In the case of death of one of the two surviving depositors, the account shall, as from the date of death of such depositor. If he is already having a single account in his name in the same Post Office Savings Bank, one of the two accounts shall be closed.

     

    Note 6:- The term ‘pensioner’ includes a person drawing family pension. A pension account may be opened in addition to a single account or a joint account or both in the same or another Post Office Savings Bank.

     

    Note 7:- Omitted.

     

    “4A    Basic Savings Account and matters connected therewith:-

     

    Notwithstanding anything contained in rules 4 and 5, and with the objective of facilitating payment of various Government benefits transferred under different schemes of Central and State Governments, the beneficiaries of any such scheme may open and operate Basic Savings Account, deposit required for opening of such account, etc. and other matters connected therewith shall be as specified in the Table below, namely:-

     

    Type of Account

    Who may open the account

    Deposit required for opening of account

    Number of accounts that can be opened

    Type of deposits that can be made into the account

    Minimum balance to be maintained in the account

    Who may operate the account

    1

    2

    3

    4

    5

    6

    7

    Basic Savings Account

     

     

    (i) Registered adult member of any Government Welfare Scheme.

    (ii) Guardian of a minor whose name is registered for any Government Benefit.

    Nil

    One

    Any Government benefit or any other deposit under the Rules.

    Nil

    (i) An individual adult whose name is registered for any Government Welfare scheme.

    (ii) A guardian of any minor whose name is registered under any Government Welfare Scheme.

     

    Any Savings Accounts opened Rule 4A or 4B as they stood prior to the date of commencement of these rules shall be deemed to be a Basic Savings Account under this rule.

     

    Rule 4B deleted vide MOF(DEA) Notification GSR 323( E) F.No.2/6/2006-NS-II  dated  20.5.2013

     

  5. Deposit and withdrawals in an account:- (1) No account shall be opened with a deposit of less than twenty rupees provided that the first deposit at the time of opening an account shall be made in cash only.

               

    (2)        No subsequent deposit shall be of a sum less than five rupees.

     

    (3)        No withdrawal shall be for a sum less than five rupees.

     

    (4)        No withdrawal shall be permitted which has the effect of reducing the balance to less than fifty rupees in an account not having cheque facility and five hundred rupees in an account in which cheque facility has been provided.

               

    (5)        Not more than one withdrawal in a day shall be allowed from an account standing at an Extra Departmental Sub-Savings Bank, or Branch Savings Bank.

     

    (6)        Withdrawal of not less than twenty rupees may be made by cheque at any Head Savings Bank of sub- Savings Bank, authorised in this behalf, subject to conditions prescribed.

     

    (7)        The deposits which are not in multiples of 5 paise shall be rounded to the next integer of five paise.

     

    (8)        Notwithstanding anything contained in this rule-

     

    (a)             No deposit shall be accepted in an account other than individual account.

     

    (b)             The outstanding balances in an account other than individual account, shall be refunded to the depositor on a date not later than 31st December, 2005.

     

  6. Interest on deposits in an account:- (1) Subject to sub-rules (2) to (9), interest at the rate, notified by the Central Government in the official gazette from time to time, shall be allowed for calendar month on the lowest balance at credit of an account between the close of the tenth day and end of the month and such interest shall be calculated and credited in the account at the end of each year.

     

    (2)        Interest shall be allowed only on sum of complete rupees and shall be rounded off to the nearest rupee and for this purpose any amount of 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored.

     

    (3)        No interest shall be allowed on an account for any month in which the balance at credit is below twenty rupees at any time between the tenth and last date of the month.

     

    (2)             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.

     

    (3)             No interest shall be allowed on any sum in excess of the maximum balance specified in column(3) of the Table below rule-4.

     

    (4)             Omitted.

     

    (5)             No interest shall be allowed on a security deposit account after the expiry of three months from the first day of the month in which the amount secured has been withdrawn by the pledgee of the pledgee has authorised repayment of such amount to the pledger, as the case may be.

     

    (6)             If an account is closed in the course of a year, interest shall be allowed upto the end of the month preceding the moth in which the account is closed.

     

    (9)(a)   In the event of death of a depositor, the interest in his account shall be allowed only till the end of the month preceding the month in which notice is issued to the person or persons recognised by the Post Office Savings Bank as entitled to receive the balance in the said account.

     

    (b) Interest for any subsequent period shall be allowed only if the balance in the account of the deceased or the share therein which the claimant is entitled together with the balances or share of balances, if any, in other savings accounts held by him, does not exceed the maximum balance specified in single account in column (3) of the Table below rule-4 and the depositor gives a declaration to this effect to the post office.

               

     

    (10)      Notwithstanding anything contained in this rule:-

     

    (a)             Deposits in an account other than individual account closed on or before 31st December, 2005 through withdrawal or refund, shall also be allowed for the month in which the account is closed on pro-rata basis.

     

    (b)             The interest in an account other than individual account closed on or before 31st December, 2005 through withdrawal or refund, shall also be allowed for the month in which the account is closed on pro-rata basis.

     

  7. Confirmation of balance:- The depositor shall present his passbook as soon as possible after the 31st day of March to the Post Office Savings Bank where his account stands, for addition of interest and confirmation of balance at credit in the account and if the passbook is not so presented by the depositor or collected by him from the Post Office Savings Bank within three months of its presentation it may entail acceptance by the depositor of balance as appearing in the books of the Post Office Savings Bank as final.

     

  8. Silent Account – (1) An account in which a deposit or withdrawal has not taken place for three complete years, shall be treated as a silent account.

               

    (2)        Transaction in respect of silent account shall be allowed as per the instructions issued by the Director General (Posts) from time to time.

     

    (3)        In respect of silent accounts having balance below the stipulated minimum for an account not having cheque facility, service charge of Rs. 20 shall be deducted on the last working day of each financial year. The account holder shall be reminded through a notice to reactivate the account.

               

    (4)        If the account holder fails to reactivate the account  despite giving notice as in (3) above, service charge will continue to be levied and the account holder shall be reminded through a notice every time. After deduction of service charge if the balance becomes nil, the account will stand automatically closed. The account holder will be notified when the account is closed.

     

  9. Final withdrawal on closure:- (1) Except as provided in sub-rule (2), final withdrawal on closure of an account shall be allowed at a Sub-Savings Bank, Extra Departmental Sub-Savings Bank or Branch Savings Bank, only after obtaining the sanction of the relevant Head Savings Bank.

               

    (2)        When payment of interest is not involved and when final withdrawal on closure of an account is made at Post Offices on Core Banking Solution platform, withdrawal on closure may be allowed by a Sub-Savings Bank without obtaining the prior sanction of the Head Savings Bank.

     

  10. Supply of Savings Bank ledger copy – A depositor may, on payment of a fee of two rupees for every thirty entries or part thereof, obtain copy of his savings account as appearing in the ledger of the Post Office Savings Bank  for any period for which such ledger is available.

     

  11. Repeal and Savings – (1) The provisions of the Post Office Savings Bank  Rules 1881, which are in force and the Post Office Savings Bank  Rules, 1965 are hereby repealed.

     

    (2)        Notwithstanding such repeal anything done or any action taken under the rules so repealed shall be deemed to have been done or taken under the corresponding provisions of these rules or the Post Office Savings Bank General Rules, 1981.

     

 
 
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