POSB - TYPES OF SAVINGS ACCOUNTS

POSB - TYPES OF SAVINGS ACCOUNTS

POSB - TYPES OF SAVINGS ACCOUNTS

13.     From 13.5.2005, only individual accounts can be opened under Rule 4 of Post Office Savings Account Rules, 1981. Following types of accounts can be opened in the FINACLE CBS Software:-.

(i)          Single/Joint account  with Cheque Book or without cheque book.

(ii)         Minor account opened through Guardian.

(iii)        Lunatic Account opened on behalf of a person of unsound mind through Guardian

(iv)       Pension Account.

(v)        Sanchayika Account.(discontinued from 1.10.2016)

(vi)       Account not bearing interest

(vii)      Basic Savings Account (Zero Balance)   from 20.5.2013

A brief detail of each type of account is given below: -

(1)     Single and Joint Account with or without cheque book: -

 

(a) Single accounts can be opened by an adult or a minor of the age of 10 years or more. Joint account can be opened by two or three adults to be operated by them (a) jointly or by the survivors/survivor which is called Joint-A type account (b) either of them/any of them or either of the survivors or survivor which is called Joint-B type account.  Any number of  accounts can be opened by the depositor(s) but NOT more than one single, one joint account and one Minor Account as Guardian can be opened in each post office.  A person can open two joint accounts with two different partners at the same post office. For example, if A,B and C open a joint account in one post office, A can also open separate joint accounts wirh B & C respectively.In other words, A can open one separate Joint Account with B and another separate Joint Account with C.If the applicant applies for cheque book, account can not be opened with initial deposit of less than Rs.500/-. Otherwise, account can be opened without cheque book with Rs.20/- as initial deposit.

(b)        Any individual of the age between 10-18 years, who opens account in POSB without guardian, has to submit revised account opening form (AOF) on attaining the age of 18 years with fresh KYC documents. Revised AOF and KYC documents should be attested by the ex-guardian. Otherwise, all transactions of such accounts will be frozen from the day he/she attains the age of 18 years.

(2)     Minor’s Accounts: - Only guardian can open account on behalf of a minor.  Guardian in relation to a minor means: -

·    Father or mother, and

·   Where neither parent is alive, or where the only living parent is incapable of acting, a person entitled under the law for the time being in force to have the care of the property of the minor.

(a)     If an account is to be opened on behalf of a minor, the application form for opening the account should be submitted by the guardian of the minor.  If only year of birth is known by the guardian and exact month and date of birth is not known, the 1^st July of that year will be taken as Date and month of birthand in case only date is not known, 16^th of the month will be taken as the date of birth.

(b)     The minor, on whose behalf account has been opened by the guardian, on attaining majority should fill in account opening form (AOF) duly attested by the guardian and present his Identification/Address proof and photograph to post office where account stands. If he/she desires to continue the account,afollowing additionaldeclaration is required to be given on plain paper in manuscript:-

“I further declare that I have/I shall have, after the expiry of one month from the date of my attaining majority, not more than one account standing in my own name at any Post Office Savings Bank.  In the event of this declaration proving incorrect, I shall be liable to forfeit interest from the date of my attaining majority to the date of closure of all such accounts found open in any Post Office”. The declaration should be attested either by the person who was operating the account or by a trustworthy person known to the Post Office.

(c)     The revised AOF alongwith Annexure-I or II and KYC documents including separate declaration if given should be kept in the post office in A4 size Guard File. Duplicate KYC Form should be sent to Circle processing Centre (CPC) for further processing.

Note: Once the minor attains majority, the status of account will automatically be shown as “freeze” in FINACLE CBS Application. During the next transaction, in CMRC menu option, in account modification option, “mode of operation” to be changed to 012- self to enable the ex-minor to operate the account independently.

(3)     Lunatic Accounts opened on behalf of persons of unsound mind through Guardian: - (a) An account may be opened on behalf of a person of unsound mind under the conditions mentioned in rule 4(1)(d) of the Post Office Savings Account Rules, 1981.

(b)  An account opened on behalf of a person of unsound mind by a manager or guardian appointed by a Court of Law or the Superintendent of a Mental Hospital, may, in the event of the court or the Superintendent of Mental Hospital subsequently declaring such person of unsound mind to be sane, be operated by the ex-lunatic on his/her furnishing the following additionaldeclaration in addition to a fresh account opening form (AOF) ,“I further declare that I have/I shall have, after the expiry of one month from the date of my becoming sane, not more than one account standing in my name at any Post Office Savings Bank.  In the event of this declaration proving in-correct, I shall be liable to forfeit interest from the date of my being declared sane to the date of closure of all such accounts found opened in any post office”.

(c)     The revised AOF alongwith Annexure-I or II and KYC documents including separate declaration if given should be kept in the post office in A4 size Guard File. Duplicate KYC Form should be sent to Circle processing Centre (CPC) for further processing.

(4)     Pension Accounts: - (a) A pension account can be opened by the Pensioners of Railway, Postal, Telecom or any other Organization (with whom agreement has been signed by the Department) for the credit of monthly pension automatically in their pension account by the Postmaster.  Only one pension account can be opened by the Pensioner.  He can also open an ordinary single and joint account in addition to the pension account in the same post office.  In this account, the amount of pension will be credited by the Postmaster every month and the pensioner can withdraw the amount from the account at his convenience.  The pensioner cannot deposit any other money in this account. A Pension account can also be opened in Joint capacity but only with spouse of Pensioner whose name is entered in the PPO.

(b)     In a pension account, the Head Savings Bank or Sub Savings Bank is authorized to recover any amount credited in excess of the eligible amount.  An application for withdrawal will be used for the purpose with suitable remarks showing the reasons for the withdrawal.  An intimation to the pensioner should be sent in that case explaining why the balance in his account is reduced.

(5)     Sanchayika Accounts: - This was introduced by MOF(DEA) from 22.06.1970 and  discontinued for opening of these accounts from 1.10.2016. However, already opened Sanchayika Accounts shall be treated as normal savings account.

(6)        Accounts not bearing interest:- If at the time of opening an account, the intending depositor expresses his unwillingness to receive interest on the deposits in his account, he should be requested to record a statement to that effect under his own signature in the application form for opening of the account. The words “No interest” should then be written prominently in red ink across the top left hand side of the application form, on page one of the pass book given to the depositor and at the head of the depositor's account in the FINACLE CBS Application.

(i)            If a depositor who has opened an account not bearing interest applies afterwards to get interest in his account, he should be allowed to change the option midway during the currency of the account.

(ii)          If a depositor who has opened Savings account(s) bearing interest, declines afterwards to accept interest, interest will cease to accrue from the year in which the application is made. The words “No Interest” should be written in the pass book and entered in FINACLE CBS Application. The depositor should submit a fresh application form (AOF) which should be kept along with the old form.

Note:- Only Savings accounts can be opened under this option.

(7)        Basic Savings Account:- Ministry of Finance (DEA) has vide its notification issued vide F.No. 2/6/2006-NS-II dated 20.5.2011 has introduced another category of savings account called “Basic Savings Account” under newly inserted Rule 4A (1) of Post Office Savings Account Rules 1981 and renamed all “Workers Wage Accounts” opened under Rule 4A of POSA Rules 1981 as well as all Old Age/Widow/Disabled Pensioners Accounts opened under Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disabled Pension Scheme vide Rule 4B of POSA Rules 1981 as “Basic Savings Accounts” from 20.5.2013. Rule 4B of POSA Rules 1981 has been deleted from 20.5.2013. Main features of this type of savings account and the procedure to be followed for opening and operating this type of account(s) is given below:-

a)            A registered adult member of any Government Welfare scheme can open Basic Savings Account at any Post Office including EDBO.

b)            A guardian of a minor whose name is registered for any Government Welfare Scheme can also open Basic Savings Account at any Post Office including EDBO.

c)            Only one account can be opened by the beneficiary.

d)            No minimum amount will be required to open such account and no minimum balance needs to be maintained in such accounts.

e)            Any Government benefit or any other deposit can be made in these accounts.

f)             These accounts will have all the facilities that have been provided for normal Savings Account except that these will be non cheque accounts.

g)             Only a single account may be opened under this category..

h)            The depositor who desired to open Basic Savings Account under this category has to provide copy of letter/card issued by a competent authority of any State or Central Government Department mentioning registration/enrollment number under any welfare scheme. No account will be opened without providing this information.

i)              The Branch/Sub/Head Postmaster will compare this document with the original under his/her dated signatures. The depositor has to provide one document as Address Proof from the documents prescribed for Low Risk Accounts and photograph(s) as required for Low Risk Category of Accounts.

j)              All other formalities applicable to normal savings account i.e Specimen Signatures, issue of PR in EDBO, issue of passbook etc. will be followed.

k)            Interest will be credited in such accounts by following the normal procedure laid down for savings accounts.

l)              These accounts will not be treated as silent.

m)          All existing Zero balance Accounts opened either under NREGS module of Sanchaya Post or opened manually for NREGA Workers or Indira Gandhi National Old Age/Widow/Disability Pensioners will be renamed as “Basic Savings Accounts”.

Source : SB Order No. 09/2018,  Pages 12-15