If you are a Post Office Savings Scheme account holder, there is big news for you. The Department of Economic Affairs, Ministry of Finance has made three major changes related to the scheme, which may affect your returns and withdrawal criteria. The changes were announced by the authority through an e-Gazette notification.
Significant Changes Made by Govt to Post Office Savings Scheme
1. Increase in Number of Account Holders
The maximum number of joint account holders for the post office savings scheme was two, but now with the recent change, there can be three.
“In the Post Office Savings Account Scheme, 2019 (hereinafter referred to as the “principal scheme’’), in paragraph 3, in sub-paragraph (1), in clause (b), for the words “two adults jointly”, the words “upto a maximum of three adults in joint names” shall be substituted,” says the e-Gazette notification.
2. Withdrawal Application Form Changed
Earlier the account holders were required to fill and submit Form-2 for withdrawals, but now the Govt has transferred the significance to Form-3 for withdrawals not less than ₹50.
“Withdrawals from the account for not less than fifty rupees may be made by presenting a book along with Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above the minimum prescribed limit by way of cheque or electronic means,” says the Post Office Savings Account Scheme rules before changes.
“Withdrawals from the account for not less than fifty rupees may be made by presenting a passbook along with the application for loan or withdrawal in Form-3 of the Government Savings Promotion General Rules, 2018 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above the minimum prescribed limit by way of cheque or electronic means,” asserted the new notification.
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3. Interest on Accounts Deposits
“On the lowest amount in an account between the closing of the tenth day and the end of the month, interest at the rate of 4% annually shall be permitted. Such interest shall be calculated and credited in the account at the end of each year,” mentioned economic times.
Now with the new notification, “In the principal scheme, in paragraph 5, in sub-paragraph (5), for the words “at the end of the month”, the words “till the end of the month” shall be substituted.”