WE PROVIDE HASSLE FREE WALK THROUGH POSB RULES AND POSB PRODUCTS

Agents_business

 AGENTS BUSINESS - WORKING HOURS AND FIELD OF OPERATION

WORKING HOURS

Rule-147(16) of CBS Manual and Rule-16 of POSB Manual Vol.II  have been amended vide SB Order No. 34/2021 which reads as follows :

A separate business hours for acceptance of business from agents during the business hours of the Post offices shall be fixed by the authorities competent  to issue Notice of Hours of Business, according to the local convenience of the post office, in order to ensure that the agents can come and transact their business during these hours. It  should be ensured that under no circumstances, service to the general public is affected due to fixing of separate business hours for agents. Further the Postmasters shall also accept the agents' transactions  beyond the hours fixed for agents during the business hours, whenever there is no rush at the counter for transactions. The agents should be provided cooperation by postal staff whenever  they attend the post office to transact their business during business hours fixed for them. They should be treated with all courtesy and allowed to come inside the post office public hall during their business hours.

Click here for SB Order No. 34/2021

AREA OF OPERATION:

SAS and MPKBY agents are to be attached to Head Post Offices and Sub Post Offices only. They are allowed to collect business based on a Certificate of Authority for a specific period.  Before expiry of the said period, agents should get their Certificate of Authority renewed by submitting application to the appropriate authority.  They cannot collect any business once the period is over. Post offices concerned shall watch for this and should not accept deposits from agents after the expiry of the licence period.

Agents shall be allowed to canvas business in the area specified in the Certificate of Authority. There is no condition regarding minimum business to be achieved by the agents.  However, inactive agents should be identified periodically and their agency should be cancelled. 

A SAS agent is allowed  to canvass investment throughout the State in which he is  appointed.  He can be attached to one or all the post offices under the same head post office for effecting transactions but for receiving receipt books, he can be attached to any one HO or SO only. In larger cities where there are more than one Head Post Office, the agent can be attached to all the sub offices under all the Head Post offices to effect transactions provided he furnishes security of Rs.5000/- He can opt for any one Head office or Sub office for receiving the receipt books.  Though the agent is allowed to canvass business only in the State in which he is appointed, this restriction will not, preclude him from purchasing certificates on behalf of a investor whose permanent address as given in the application is outside  the jurisdiction of  the State of the issuing post office to which he is attached.

(ii). MPKBY Agents can canvass investment in National Savings Recurring Deposit Scheme in the area specified in the Certificate of Authority through the post offices to which they are attached for this purpose, by the Appointing Authority. 

AGENTS'  BUSINESS:

SAS and MPKBY agents can submit their collection of new investments and subsequent deposits at the assigned Post offices by presenting the required documents along with the amount in cash/ cheque or by credit from SB accounts of the concerned depositors. 

(i) When a SAS agent wants to open an account, Agent will present at the post office to which he/she is attached, an application for opening of account (SB-AOF) along with the KYC Form (SB-KYC), KYC Documents of the Depositor, duly signed by the depositor together with the pay-in-slip, amount and the receipt book containing the counterfoil of the receipt the foil of which was handed over to the investor. The Agent should attest the KYC documents of the Depositor in addition to self-attestation of the Depositor.

(ii) The post office will verify the identity of the agent by reference to the specimen signature in the Certificate of Authority on record in the post office or one available with the agent, compare the entries in the application for opening of account and agent's copy of the receipt. If these are in order, the counter Assistant will affix his/her signature on the agent's copy of the receipt, with date stamp and issue a passbook observing all the required formalities and deliver it to the agent after taking his/her acquittance in the SB-AOF. It should be seen by the Postmaster that the investor himself has signed the authority for opening of account through authorized agent. Ordinarily an agent is required to deposit the amount of investment through him on the day of receipt of the money from the investor but in no case should the money remain un-deposited beyond 10 days from the date of receipt of money by the agent. This period can, however, be raised by the Appointing Authority to 15 days in case of such agents only who are attached to post offices in areas where communications are not easily available. In such cases the Appointing Authority will make a note to this effect in the relevant Certificate of Authority or if this is done later, intimation will be sent to the post office concerned who will make a note in the copy of Certificate of Authority available with it and attach the letter to it. If the amount of investment is presented at post office on a date later than the date borne on the application for opening of account, it should be ensured that an endorsement "Presented at post office on.......(date)" is recorded on the application for opening and signed by the agent.


(iii). When a MPKBY agent wants to open an account, Agent will present at the post office to which she is attached, an application for opening of account (SB-AOF) along with the KYC Form (SB-KYC), KYC Documents of the Depositor and pay-in-slip, duly signed by the depositor together with the amount. The Agent should attest the KYC documents of the Depositor in addition to self-attestation of the Depositor.

(iv) The post office will verify the identity of the agent by reference to the specimen signature in the Certificate of Authority on record in the post office or one available with the agent, compare the entries in the application for opening of account. If these are in order, the counter Assistant will affix his/her signature on the agent's copy of the receipt, with date stamp and issue a passbook observing all the required formalities and deliver it to the agent after taking his/her acquittance in the SB-AOF. It should be seen by the Postmaster that the investor himself has signed the authority for opening of account through authorized agent. Ordinarily an agent is required to deposit the amount of investment through him on the day of receipt of the money from the investor but in no case should the money remain un-deposited between 5 to 10 days from the date of receipt of money by the agent. This period can, however, be raised by the Appointing Authority to 15 days in case of such agents only who are attached to post offices in areas where communications are not easily available. In such cases the Appointing Authority will make a note to this effect in the relevant Certificate of Authority or if this is done later, intimation will be sent to the post office concerned who will make a note in the copy of Certificate of Authority available with it and attach the letter to it.

PROCEDURE TO BE FOLLOWED BY HO/SO:

(i). When any account is opened through an agent, the application for purchase (SB-AOF) is accompanied by the required amount either in cash or by cheque. Relevant fields in the New Account Opening/Purchase of certificate Form (SB-AOF) should be got filled relating to investment through agent.

(ii) An agent who canvasses for a TD/MIS/NSC/KVP account will grant a receipt from AAR Book (Authorised Agent Receipt Book) to the depositor for the money collected He/She will get his/her name and authority number noted by the depositor under the relevant field in the Account Opening Form (SB-AOF). The agent shall note his/her authority number and number of his/her copy of the receipt of AAR Book at the top of the pay-in-slip. The application form duly signed by the depositor, pay-in-slip, agent's receipt containing duplicate copy or counter foil of the receipt and money will be presented by the agent at the post office for opening an account in the name of the depositor. If receipt number is not mentioned by the agent on Purchase Application (SB-AOF), no commission will be paid to the agent and the investment will be treated as direct.

(iii) The deposit tendered by the agent beyond the prescribed period (viz 10 days or days prescribed by the Appointing Authority if any) will not be accepted by the post office. If the amount of investment is presented at the post office on a date later than the date borne on the application for opening the account, the agent should make the following endorsement. “Presented at the post office on ..............” under his/her dated signature on the application for opening the account.

(iv) The Counter PA of Head/Sub Post Offices will ensure that, while opening the account submitted by the Agent, shall select Agent ID from the drop-down list of agents whose name and agency number is written in the Account Opening form. The Supervisor will verify the entry in Finacle CBS application while verifying the account opening. Commission at the rate prescribed from time to time shall be credited into linked savings account of the agent. If the agent’s ID is not available, it has to be added using HDSAMM menu in Finacle.

(v) (a) The MPKBY agents should submit the passbooks, the amount of deposit (both cash and cheque) and a pay-in-slip along with the Agent schedule (LOT) generated from Agent Portal. Two copies of Agent LOT are to be taken from the agent along with pay-in- slip. One copy of Agent LOT will be returned to the Agent duly acknowledged receipt and second copy of Agent schedule (LOT) should be attached with pay-in-slip and placed at the end of RD voucher bundle and sent to SBCO of the concerned HO. The Agents will submit the schedule (LOT) of deposits separately for deposits in cash, DOP cheque and Bank Cheque duly signed.

(b) MPKBY agents attached to CBS post offices shall prepare RD LOTs through agent portal (https://dopagent.indiapost.gov.in). Thereafter submit RD Lot in 2 copies, pay in slip, passbooks, Cash/Cheque in attached CBS post office.

(vi) At the close of the day, SO or HO shall generate a report on Commission paid to Agents, agency wise from Finacle Application using HFINRPT menu. SOs shall send this report to HO in the Account Bag and in HO it will be sent to Accounts Branch.

(vii) No commission is payable to MPKBY Agents representing refund of withdrawal and interest payable thereon and the amount of default fee recovered on defaulted instalments.

Termination of Agency: -

(i) When an agency is terminated or an agent dies, the Appointing Authority will send intimation under registered post to the post office to which the agent was accredited with a copy to the Head Office if the agent is accredited to a sub office. In the order terminating the agency, the Appointing Authority will specify the date by which the unused and partially used up receipt books should be returned to the post office by the agent.

(ii) The agent shall deposit the amount of investment lying with him un-deposited and return the partially used and unused receipt books forthwith to the post office concerned. Non- compliance of this rule by the authorized agent by the date fixed by the Appointing Authority in the order terminating the agency shall be reported to the Appointing Authority by the post office.

(iii) The used-up receipt books containing only agent's copies of receipt need not be obtained from the agents on the termination of their agency. The unused receipt books after their surrender by the agent(s) to the post office will be brought again on the stock register and issued to other authorized agents for their use. The period of preservation of the partially used up receipt books after their surrender to the post office is 3 years.

Note: In case involvement of any agent is established in any fraud case, the appointing authority should immediately be asked to cancel his/her agency and all post offices in the Division should be directed not to accept any further business from that agent, by the Divisional Head. In addition to this, his/her name should be displayed in the premises of all Post Offices in the Division clearly stating that Post Office has suspended business with concerned Agent without mentioning his/her involvement in fraud case as it may attract adverse legal action.

Change of MPKBY Agent

(i). Where the RD account has been initially opened through a MPKBY agent, the depositor may seek change of agent in the following cases:

(a). In case of death of the agent through whom the account was opened.

(b). In case of termination of the agency / non extension of the agency of the agent through whom the account was opened.

(c). Change of residence of the depositor either at the same station or by transfer from one station to another

(d). A depositor who opened the account directly by now wants to avail the services of the agent.

(ii). In the above cases, request for change of agent will be sent by the depositor to the concerned Regional Director, NSO (where the account was opened) / Appointing Authority of Agent (Designated Officer of respective State Government) and after the approval to change the agent is granted by the authority concerned, the depositor can utilise the services of that agent. In such cases, new agent can claim commission for subsequent deposits. 

(iii). After receipt of such order from the authority concerned, the post office concerned shall change the agent code through RD Account Modification menu and place the order in a guard file.

MISCELLANEOUS:

(1). If any MPKBY agent is attached to BO of a CBS Post Office, those agents shall prepare RD LOTs through agent portal and submit at CBS Post Office (i.e. Account Office of that BO).

(2). In case any CBS Post Office is not working due to lockdown, network failure or any other issues, the collection of SAS/MPKBY agents may be accepted in other CBS Post Office (HO/SO) under the same Head Post Office. For acceptance of deposit from SAS/MPKBY agents in other CBS Post Office, modify respective agent’s ID and change SOL ID to HO SET ID through HDSAMM menu and save it.

(3). Agents are not allowed to act as messengers or authorised persons for any of the operation on behalf of the depositors except opening of account. 

(4). Agents are not allowed to issue his/her own cheque on behalf of the Depositors.

(5). Agents are not allowed to accept the signed withdrawal forms (SB-7) from the depositors for fresh investments. However, withdrawal form can be taken for re-investment of matured accounts/certificates.

(6). Agents are allowed to accept either cash or the cheque (POSB or other Bank) from the investors.

(7). No cash more than the prescribed limit of Rs.20,000/- at a time should be accepted from the SAS agents as no commission is payable on such irregular deposits. If any such deposits are found at later stage, Agency commission will be recovered from the Agent and action will be taken against the officials who accepted the cash deposit exceeding the prescribed limit.

(8). The commission on subsequent deposits in RD will be paid to those agents through whom the accounts were opened. The other agents cannot make subsequent deposits in these accounts which were not opened through them.

(9). The SAS agents will produce the receipt book containing the agent's copy of the counterfoil at the post office at the time of depositing money for investment under any scheme for further action by the post office as at present. There is no change in this procedure. The Counter Assistant will check the continuity of the receipts issued in the receipt book to ensure that there is no break in the receipts issued.

(10). The particulars of post offices with which the agents are authorized to transact business are recorded in the Certificate of Authority of the agent. The agent can deposit money at these post offices only. For the purpose of drawl of receipt books, the agent will be attached to only one particular post office as at present. There is no change in this procedure.

(11). Consequent to introduction of new procedure for payment of commission to agents at sources w.e.f. 21.07.2020, there is no change in the existing procedure regarding supply of Receipt Books to these agents. The counterfoil of the receipt duly singed by the depositor in
lieu of having received the passbook or certificate will be retained by the agent with his/her own copy in the receipt book. The liability of delivering passbooks or certificates to the depositors is of the agent. If any complaint from the depositor about non-receipt of the passbook or certificate is received, this should be brought to the notice of the concerned Regional Director, National Savings for taking appropriate action against the authorized agent.

(12). No commission is payable to agents if a Time Deposit account is extended under the provisions of sub Rule (2) of Rule 6 of NSTD Rules 2019. No commission will be payable to agents on sale of Certificates presenting investment of Provident, Superannuation, Gratuity and Endowment Fund money, funds of Co-operative societies including co-operative banks, compensation money paid to displaced persons in the form of Savings Certificates, Court funds in the control of Government Officers or local or statutory authorities or conversion to Certificates of cash securities already pledged to Government Officers by contractors, etc. or investments required to be made in Small Savings Securities under any statute or by an express order of the Government or investments made by Institutions. Trusts, Companies, Associations etc. or such other investments as may be notified by the Government in this behalf from time to time. On holding invested in excess of the prescribed limit. If any commission is found paid to the authorized agent on the excess holdings, it should be recovered.

(13). Payment of commission to heirs of deceased agents: - In the case of death of the authorized agent, the commission admissible to him/her shall be claimed by his/her heir(s) as a death claim case.

(14). No commission will be payable to agent if the investment in any scheme is not permissible under the relevant rules. If paid, it will be recovered from the agent.

(15). No commission will be paid on the investments received through agents where Agent Receipt Book number issued to the customer is not noted on the Pay-in-Slip and copy of the Agent Receipt Book is not presented along with investment for signature and date stamping by the Counter PA. All such investments will be treated as direct investments.

(16). As per Section 194-H of Income Tax Act, 1961, TDS is to be deducted from the commission paid to agents by the authority paying the commission. The rate of tax at source to be deducted will be at the rate notified by the Government from time to time (At present 5% TDS applicable on commission paid).TDS shall be deducted on commission paid by the CBS System as per the rates prescribed by Income Tax Department from time to time. A certificate (Form-16) of TDS deducted and commission actually paid during the financial year should be issued to the authorized agent by the Postmaster annually at the end of the financial year on receipt of a written request to this effect from the authorized agent.

(17). No commission is payable if the agent’s deposit by cash in any account exceeds the cash handling limit prescribed from time to time.

(18). No commission is payable if any deposit by agent is made in violation of MPKBY and SAS Agency Rules.

(19). Presence of depositor at the time of opening of account is optional when any account is opened through Agent. If any account is opened through Agent by any person who is ineligible for opening accounts under National (Small) Savings Schemes like NRI or OCI Card holders or Non-Indian Citizens etc, such accounts will be treated as irregular and shall be closed without any interest. Commission paid to the Agent shall also be recovered.

As per SB Order No. 10/2021, investment through SAS/MPKBY agents by submitting Withdrawal Form (SB-7) is not allowed.

Click here for SB Order No. 10/2021

REINVESTMENT THROUGH AGENTS:

For reinvestment of full maturity value or part thereof either by account holder directly or through SAS agent, the account holder has to either maintain or open a new Post Office savings account in the post office.

In SAS agency rules/existing procedure, reinvestment of maturity value through withdrawal form (SB-7) is allowed.  However new investment under SAS agency rules is allowed only through cash (upto Rs.20000/- or by Cheque.

i) The agent will issue authorized agent receipt from the Authorized Agent Receipt Book (Cheque) with suitable remarks and hand it over to the account holder.  Particulars of the matured deposit/certificates which are to be reinvested will be written in place of cheque number on the receipt.

ii) Where account holder desires to re-invest his/her maturity value through SAS agent in any of (TD/MIS/KVP/NSC) schemes, the account holder shall handover the following documents to SAS agent
:-
a) Passbook/Certificate (KVP/NSC) matured.
b) Account Closure Form (SB-7A)
c) Account Opening Form (AOF) of new scheme with pay-in-slip
d) Withdrawal Form (SB-7) along with passbook or POSB Cheque of PO Savings Account.

Note: - If KYC documents have not been submitted by the depositor earlier as prescribed in GSPR-2018 and KYC guidelines issued from time to time, he/she shall also submit required KYC documents.

iii) In acquittance portion of account closure form (SB-7A) or backside of preprinted KVP/NSC, account holder shall write ‘Credit maturity value into my Post Office Savings Account No. ..................” and sign.

iv) In acquittance portion of withdrawal form (SB-7) of Post Office Savings Account or on the backside of POSB cheque, account holder shall write ‘For Re-investment in ________ scheme in lieu of closed A/c No. .............. for Rs...................through the agent............................................(name of agent
and C.A. number) and sign.

v) The counter PA of post office shall check documents received and if all documents are in order, follow the procedure as prescribed in the rules for closure of an existing account and transfer maturity value into the account holder’s Post Office Savings Account.

vi) Supervisor shall verify the closure of account.

vii) After closure of account, counter PA shall open new account under account holder/minor CIF and during account opening, funding of amount mentioned in Withdrawal Form (SB-7) or POSB Cheque shall be done by transfer from account holder’s Post Office Savings Account.

viii) Select agency code of the concerned agent during account opening. 

ix) Supervisor shall verify the new account opening and funding of account.

x) Counter PA shall handover the passbook of new account opened, cancelled passbook of closed account and authorized agent receipt duly affixed with date stamp to the SAS agent.

xi) SAS agent will handover passbooks of new account, cancelled passbook of  closed account to the account holder and take back account holders copy of Authorized Agent Receipt and paste on agent’s copy of Authorized Agent Receipt. 

Note: - (i) The reinvestment can be made either for the amount equal to or less amount and up to maturity value credited.

(ii) The re-investment can only be made under same CIF and in the name of account holder/one of the joint holders/minor under the guardianship of the account holder i.e. The account holder (s) of the matured account shall be the sole account holder or one of the joint account holders or the guardian of the minor / person of unsound mind as the case may be, of the new account opened under reinvestment.

SB Order No. 11/2021

ORDERS REITERATED VIDE DOP FS DIVISION LETTER NO. FS-12/12/2023-FS-DOP DATED 22,02.2024

i. A TDS certificate in the Form No. 16 A is to be issued quarterly for TDS deducted on Agent commission by TDS deductors. (Refer: Rule 3 (iv) of Appendix 12 of POSB CBS Manual 2021)

ii. In case any CBS Post Office is not working due to network failure or any other issues, the collection of SAS/MPKBY agents may be accepted in other CBS Post Office (HO/SO) under the same Head Post Office. (Refer: Rule 170 (2) of POSB CBS Manual 2021) 

iii. A separate business hour for acceptance of business from agents during the business hours of the post offices shall be fixed by the authority competent to issue Notice of Hours of Business, according to the local convenience of the post office, in order to ensure that the agents can come and transact their business during these hours. It should be ensured that under no circumstances, service to the general public is affected due to fixing of separate business hours for agents. (Rule 166(3) of POSB CBS Manual 2021]. 

iv. Basic amenities like drinking water, toilet etc., may be provided to agents. vi. In the light of the SB Order 34/2020, it is also requested that POSB transactions for all schemes should be carried out on all POSB counters. 


Deduction of TDS:

As per SB order No. 9/2024 dated 1.10.2024 the rate of Tax Deduction at Source (TDS) for the Agent's Commission under Clause 57, Section 194H of the Income Tax Act, has been reduced from 5% to 2% with effect from 01.10.2024. Extract of the amendment is reproduced below:

Clause 57:

"In Section 194H of the Income Tax Act, for the words "Five Percent", the words "two percent" shall be substituted with effect from 7st day of October 2024'.

Click here for SB Order No. 9/2024