PAYMENT OF MATURITY VALUE IN SAVINGS SCHEMES
As per SB Order No. 9/2021, payment of maturity/premature/closure amount in respect of RD/SCSS/TD/NSC/KVP/MIS accounts can be made to account holder's bank accounts using the ECS outward credit facility.
As per SB Order No. 23/2022, the above facility has been extended to SB/PPF/SSA/NSS accounts also.
This will substantially reduce Postmaster's cheque requirement and its indent, supply, storage, safe keeping, reconciliation and possible misuse in the post offices.
Postrnaster's cheque shall not be issued for maturity/pre-mature/closure amount of accounts of all the schemes of POSB except KVPNSC bulk closure through CNSBCV.
In case of exigencies, if the account holder desires payment through Postmaster's cheque, post office concerned shall obtain an application from account holder stating that "I do not want to credit my payment directly into my Bank Account through ECS outward credit, payment to be made by cheque". This application shall be attached with account closure form. However, this option is to be exercised only on rare occasions.
From the date of receipt of SB order l3/2O19 dated 18.9.2019, an account (certificate) which has matured but not closed, the eligible balance in the account shall continue to earn interest at the rate applicable to the Post Office Savings Account, till the closure of the account.
"Eligible Balance" means the amount of balance at the credit of the account, including interest accrued thereon, after effecting recoveries on account of outstanding principal and interest, if any, in respect of a loan availed by the depositor.
At the time of closure of any TDA type of account (RD,TD,MIS,SCSS,KVP and
NSC), only single and double handed post offices (including BOs) shall collect
closed passbook from the account holder (Refer: para 5 (b) of SB order no.
01/2022). This has been reiterated vide DOP FS Division letter No. FS-12/12/2023-FS-DOP dated 22.02.2024.
SB Order No. 4/2020, SB Order No. 1/2022, DOP FS Division Letter No. FS-12/12/2023-FS-DOP dated 22.02.2024
Please Click here for the details of lock up periods of various POSB schemes and the impact of Premature closure
