GENERAL RULES REGARDING WITHDRAWALS, PREMATURE CLOSURES AND CLOSURES
Withdrawal from an account
(1). All withdrawals from Savings Account presented at the counter of Post Office will be accompanied by SB-7 (Application for Withdrawal). Whenever any Depositor opt for closure of any account after its maturity, application is submitted in form SB-7A and whenever any account is closed pre-maturely before the maturity, application is submitted in SB-7B. For availing loan and withdrawal from Recurring Deposit, Public Provident Fund and Sukanya Samriddhi Account, application is submitted in the form SB-7C.
(2). The Counter Assistant accepting the above forms should check the entries and after transaction is done in Finacle CBS Application, note Name of Scheme and Transaction ID in red ink on the upper right-hand corner of the forms. The date stamp should be impressed at the marked place. These forms will serve as voucher for payment transactions, for other than the payment made to the claimant in case of deceased claim settlement. This voucher will be included in the Voucher Bundle along with other vouchers.
(3). At the time of payment of maturity proceeds or partial withdrawal or interest, the depositor shall affix his/her signature or thumb impression in the presence of the authorised officer who shall verify the identity of the person.
(4). In the case of an account opened on behalf of a minor or a person of unsound mind, any withdrawal during the minority or the lunacy of the depositor, as the case may be, shall be permitted to the guardian on furnishing a certificate:“that the amount sought to be withdrawn is required for the use of Mr./ Ms............who is minor or a person of unsound mind and is alive on this day”.
(5). Payment of partial withdrawal of the eligible amount or payment of interest may be made by any of the means viz. Cash/Cheque/Transferred to Savings Account.
Loans and partial withdrawal
(1). Loans and partial withdrawals from an account shall be allowed where permissible under the provisions of a Savings Schemes, and shall be subject to the conditions specified therein.
(2). In case of an account opened on behalf of a minor or a person of unsound mind, loan or partial withdrawal shall be permitted to the guardian on furnishing the following certificate; namely:-
“Certified that the amount sought to be withdrawn is required for the use and welfare of Shri/Smt./Master/Kumari.................................. who is a minor/ a person of unsound mind/a person incapable of operating his/her account due to physical infirmity and is alive on this......the day of..............(month), ..........(year).”
(3). In case of an account opened by a minor, the loan or partial withdrawal shall be permissible to the minor.
(4). A depositor suffering from physical infirmity, including blindness, that renders him incapable of operating his/her account, may avail the facility of loan or partial withdrawal through an individual authorised by him.
Closure of account
(1). The closure of an account shall be permitted on its maturity: Provided that pre-mature closure of an account may be permitted if provided for in the Savings Scheme and subject to the conditions specified therein.
(2). Payment of eligible balance (maturity amount), at the option of depositors or guardian or nominee or legal heir, as the case may be, through any of the following means;namely:-
(i) by transfer to the Savings Bank account of the payee,
(ii) by a crossed cheque,
(iii) by cash, if the amount is below the limit prescribed in this regard under the Income Tax Act, 1961.
(3). Pre-mature closure of an account shall be permissible as per the provisions of the Savings Scheme.
(4). Account opened through e-Banking and Mobile Banking can be closed by the Depositor himself through e-Banking and Mobile Banking. However, if any depositor desires to close the account at the home branch PO, he has to submit a written request along with the Identity Proof and account closure form. The Counter PA has to submit Depositor’s request to the Supervisor / Postmaster for necessary orders for closure of account. Then, the Counter PA shall close the account following the procedure prescribed in relevant schemes / rules. The Counter PA shall write the remark “Account opened in e-Banking / Mobile Banking” on the top of the account closure form. In such cases, there is no need for passbook and account opening form. The depositor’s request along with the identity proof shall be sent to SBCO along with the voucher.
(5). Accounts / Certificates identified / marked as unclaimed in accordance with Senior Citizens Welfare Fund Rules 2016 should be closed as per the procedure prescribed in Appendix – XVI.
Note 1: Payment of amount of Rs. 20,000/- or above : If any amount payable to the depositor except the withdrawal from Post Office Savings Accounts becomes Rs.20,000/- or above, the payment shall not be made by cash. In such cases, payment should either be made by a crossed cheque or by way of credit into savings account of the payee standing in Bank (if facility is available) or Post Office.
Note 2: Payment of maturity amount of RD / TD / MIS / SCSS / KVP & NSC, in cases where the payment could not be made through cash or transfer to PO Savings Account shall be made preferably through transfer to Savings Account standing in any Bank by ECS Outward facility as prescribed in Appendix - IV.
Withdrawal by other than Depositor
(A) Withdrawal on the basis of general power of attorney either at HO or SO
(1) A person holding a power of attorney from the depositor can withdraw money from the Depositor’s Account.
(2) A power of attorney is a document where by one or more persons give authority to one or more persons to act on his/her or their behalf. It is a delegation of authority in writing by one person empowering another to act on his/her behalf. The giver of the authority is called the “Principal” and the recipient is called the “Constituted Attorney”. If the appointment is made general for certain acts, the deed is called “General Power of Attorney”. The constituted attorney generally on the death of the principal or after the revocation of the power of attorney ceases to be the agent of the principal.
(3) The attorney will sign the application for withdrawal and warrant of payment on behalf of the depositor. He/She should be required to add, below his/her signature on the application for withdrawal, the words “Duly Constituted Attorney for A.B. (Name of depositor)”. On receipt of the application of withdrawal along with the power of attorney the Postmaster should examine the power of attorney on the following points: -
(a) The deed is in writing and has been duly signed by the “Principal”.
(b) That the signature of the principal on the deed tallies with the specimen signature kept with the post office. That the Constituted Attorney is properly identified in the document.
(c) That the deed is properly stamped under Article 48 of the Stamp Act (as applicable to each state).
(d) That specific power to receive the money has been clearly given.
(e) That the deed has not been revoked or the principal is not dead.
(4) If the power of attorney is found in order and the constituted attorney is properly identified, the payment should be made. The Postmaster should record a certificate below the applicant’s signature on the form of withdrawal or on the back of the cheque to the effect that the power of attorney was examined by him and found to be in order. Special care should be taken to see that the certificate has been recorded in clear and legible characters so that it can be easily checked. The first time a withdrawal is made from an account by such a person, a specimen of his/her signature should be taken on the application written in manuscript and preserved in Post Office in a Guard File.
(B) Withdrawal / Loan / Closure of Account / Certificate through Authorised Person
In case of extreme exigencies (i.e. Senior Citizens or illness of account holder or suffering from physical infirmity or is with differently-abled conditions) the withdrawal or loan or account closure or premature closure may be allowed through authorized person. The following procedure shall be followed.
(1). The account holder(s) shall write an application in Form-12 to the postmaster concerned, for operation of account viz. withdrawal / loan / closure or premature closure of account etc.
(2). In the application form (Form-12), the depositor shall authorize a literate person for operation of his/her account.
(3). Signature of the authorized person shall be attested by the account holder(s). In case of Joint B Account, any one of the account holder(s) can attest the signature of the authorized person.
(4). Authorized person shall not be an SAS/MPKBY agent or employee working in PO Savings Bank Branch in the post office concerned.
(5). The account holder shall fill the withdrawal form (SB-7) / closure form (SB-7A) /account premature closure form (SB-7B) / Application for Loan (SB-7C) as the case may be in his/her writing and signed.
(6). Self attested copy of ID and address proof of account holder(s) and authorized person shall also be enclosed. If any account holder(s) authorize a person for more than one transaction viz. withdrawal / loan / closure, on any day, in such case, only one set of KYC documents and photo may be obtained. However, Form-12 shall be obtained for each account.
(7). Authorized person shall submit passbook, authority letter (Form-12), withdrawal form (SB-7) / closure form (SB-7A) / account premature closure form (SB-7B) / Application for Loan (SB-7C) as the case may be and KYC documents of account holder and authorized person at concerned post office.
(8). The counter PA shall tally signature of account holder(s) available in withdrawal form (SB-7) / account closure form (SB-7A) / account premature closure form (SB-7B) / Application for Loan (SB-7C) and Form-12 with signature available in Finacle and SB-3/AOF.
(9). After tallying signature and documents, counter PA shall submit the case to Supervisor for approval.
(10). Supervisor shall also check and verify documents as well as signature of the account holder(s) with office record and if he/she is satisfied, he/she shall write order on top of the application as “authorization accepted” and sign.
(11). In case the postmaster is not satisfied about the genuineness of the request of the account holder, he/she may depute a responsible official to physically verify the request of account holder for withdrawal or loan or closure or premature closure of his/her account before effecting payment.
(12). Thereafter, Counter PA/Supervisor shall follow the process for withdrawal/Loan/Account closure/Account premature closure, as the case may be, as prescribed in the relevant rules.
(13). The payment shall be made by account payee cheque or credit into PO Savings Account or Bank Account of the account holder(s). No cash payment, irrespective of amount, shall be given to the authorized person except in case of withdrawal from Savings Account.
(14). Signature of authorized person should be taken in acquaintance part of Withdrawal form (SB-7) / account closure form (SB-7A)/Account premature closure form (SB-7B) /Application for Loan (SB-7C). After closure of account, account payee cheque or ECS outward receipt, passbook shall be handed over to the authorized person.
(15). The authority letter (Form-12) along with KYC documents, are to be attached with the voucher and submitted to SBCO.
(16). SBCO branch shall check that no cash payment is made in cases of accounts closed by authorized persons irrespective of amount and all documents are in order.
Note: For submission of authorization letter in Form-12, physical presence of the account holder(s) is not mandatory. It can be accepted from the authorized person also.
Credit of maturity value of Accounts into PO Savings Account
The maturity value of any type of account / savings certificate may be allowed to be credited in an existing PO Savings account of the depositor standing in any CBS post office on the basis of request in the withdrawal form / savings certificate at the time of closure of Account or discharge of savings certificate. In such case, repayment account shall be Savings Account of the customer while closing the account in Finacle CBS. In such case, the required pay-in-slip in SB-103 for the amount transferred into Savings Account shall be prepared by the Counter PA and duly signed by the Postmaster.
Discrepancies in Withdrawal / Closure Vouchers
Memo of Admission of Payment
(1). If a warrant of payment is lost before its submission to the Control Organization, omission/difference in signature of depositor in SB-7/SB-7(a)/SB-7(b), discrepancy in the amount receipted found during scrutiny/audit, a Memo of Admission of Payment (MAP) in form (SB 43) should be prepared. To complete the memo, the depositor or his/her authorised agent/person, as the case may be, should be asked to sign the memo in the place provided for
the purpose admitting that he has received the amount for withdrawal. The memo should then be impressed with the date stamp, attested by the Postmaster at the office of payment, and then forwarded to the Control Organization duly entered in the voucher list.
(2) If the signature of the depositor or his/her agent cannot be obtained, the case should be reported to the Gazetted Postmaster or Head of the Division as the case may be. He/She will the pass the orders for admission of payment, after making necessary enquiries regarding genuineness of the payment.
Certificate of Payment
In case any omission in withdrawal / Closure forms on the part of the Post Office like non-availability of Signature of Postmaster in the warrant of payment, non-affixing the date stamp etc, Certificate of Payment duly impressed with date stamp and signed by the Postmaster at the office of payment shall be forwarded to the Control Organization duly entered in the voucher list.
Note: In case of any omission in deposit voucher, Certificate of Credit shall be forwarded to the Control Organization duly entered in the voucher list.
Certificate of Payment / Certificate of Credit
This is to certify that the transaction ID No. _______________ in Account No. ______________ for Rs. _________ (Rupees _____________ only) on _______________carried out at __________________ Post Office (SOL ID ____________) is genuine and all the checks as prescribed in various rules relating to the deposits / withdrawals / closure of account transactions have been carried out.
Date Stamp Signature of the Postmaster
Attestation of Signature of the Depositor
If the signature of a depositor on an application for withdrawal or POSB Cheque differs from the specimen on record, payment will be made to the depositor only after the depositor has been identified by one of the following means: -
(1). His signature has been attested by the identifier (other than the SAS/MPKBY agent) who is known to the post office or by anyone of the following with whose signature and seal of office the post office is familiar or on production of any proof mentioned in preceding sub rules: -
(a) A person known to the post office.
(b) A Gazetted Officer of the Government including a Commissioned Officer of Army, Navy or Air Force.
(c) District Savings Officer with the seal of office affixed.
(d) Justice of Peace, Magistrates (including Honorary Magistrates) and judges.
(e) Members of Parliament or Legislative Assemblies/Councils, President of Municipalities and Local Bodies, Block Development Officers, Sarpanch of Panchayats.
(f) Principals of Colleges and Heads of Recognised Schools.
Note: - Attestation of signature by a person will be in the following form: -
“The Depositor is known to me and has signed in my presence”. The seal of the office must invariably be affixed. If, however, the signature of a depositor is attested by a scheduled bank, the form of attestation may be in the following terms: -
“The depositor is known to the Bank and his/her signature is confirmed”. A Bank can attest the signature of the depositor even when it is acting as an agent of the depositor.
(2) The Postmaster should also accept identification by means of a Postal Identity Card, a Passport, Aadhaar Card or any other identity card issued by a competent authority, bearing the depositor’s photograph or signature or by other document like a driving licence, C.G.H.S. card, Voter card, PAN Card etc., where the photograph or signature of the depositor is available. In such cases, the Postmaster should make a remark on the application for withdrawal “Depositor identified by passport No. ....................................................................... ....... etc.” under his/her initials.
Withdrawals from Minors’ Accounts
(1). The guardian who opened the account must furnish over his/her signature a certificate
“Certified that the amount sought to be withdrawn is required for the use of Master/Kumari .........................................................who is minor and is alive this day”
on the application for withdrawal, when the withdrawal is made by cheque, the above certificate may be obtained on the reverse of the cheque.
Exception: - The certificate is not necessary when the withdrawal is made for the purpose of Saving Certificate in the name of the minor.
(2). Should any person other than the guardian wish to withdraw money; from an account opened on behalf of a minor and claims to do so as guardian of the minor he should be required to produce a guardianship certificate from a court of competent jurisdiction.
Note: -In case the person who opened an account on behalf of minor dies and there is no legal guardian, the account may be allowed to be operated by the minor if he has attained the age of ten years. A fresh application form along with KYC documents should be obtained from the minor duly certified by a person that he is the actual depositor accompanied by a certificate of death of the person who operated on the account. Necessary entries using CMRC menu are made by the counter PA for the newly collected SB-AOF and KYC documents. Further in account modification menu, the mode of operation is to be changed to “minor operated by self -018”. SB-AOF and KYC documents are retained in the office and the KYC form is forwarded to CPC for further disposal.
(3). In HO when a guardianship certificate is produced the amount should be paid in the usual course. The guardianship certificate should be kept in a guard file serially numbered. The mark “Payment made vide guardianship certificate at serial No........................ in the guard file” should be made in remarks column of the ledger folio against the entry of the withdrawal. If the Account stands open at a SO or at a BO under the SO, payment should be made as usual and the guardianship certificate produced should be sent to the HO along with the warrant of payment duly entered in the list of documents.
Withdrawals from Accounts of Person of Unsound Mind
(1). If any one, other than the person who has opened an account on behalf of a person of unsound mind wish to withdraw money from the account he should be required to establish his/her claim by producing an order from a court appointing him as the manager or guardian of the lunatic. A copy of the order attested by the Postmaster should be attached with the withdrawal form.
(2). When an account opened on behalf of a person of unsound mind is to be closed because a Court of Law has declared him to be sane, the closure of the account should be allowed on proper identification of the depositor and on the production of the order of the court a copy of which, attested by the Postmaster should be sent to the control organization entered in the voucher list.
(3). The guardian or Superintendent of Mental Hospital should furnish the following certificate at the time of each withdrawal:
“Certified that the amount sought to be withdrawn is required for the use of Mr./Ms................. who is a person of unsound mind and who is alive on this day.”
