REGULARISATION OF EXCESS DEPOSIT IN MIS ACCOUNTS
(1). Payment of POSB interest on excess investment beyond the prescribed limit under Post Office Monthly Income Scheme:
If a depositor has made an excess investment beyond the prescribed limit under the Post Office Monthly Income Account Scheme, the excess deposit beyond the prescribed limit will be refunded by the PM/SPM with the POSB rate of interest to the depositor. The interest already paid on the excess amount will be recovered / adjusted from the amount refunded. The commission paid to the agent on the excess investment will also be recovered from the agent.
(2). Closure of MIS account when deposit exceeds limit due to death of Joint Holder / Disclosure by depositor(s) / Audit Objection:
(i). In case an individual has crossed the maximum limit prescribed for MIS account, the following procedure should be followed by the concerned CBS post office for adjustment of interest through HINTTM menu.
(ii). Closure of account as a whole:
(a). If the account is to be closed, the Counter PA shall invoke menu HINTTM; Select Function = M – Modify; Entity Type = A-Accounts; Entity ID = MIS Account number; Go; Interest Table Code = SBRAT; Start Date = Date of death of account holder + 1
(For example, in case depositor dies on 03-04-2021, date to be entered as 04-04-2021); End Date = 31-12-2099 and then click on Submit
(b). The Supervisor shall invoke menu HINTTM; Select Function = V – Verify; Entity Type = A-Accounts; Entity ID = MIS Account number; Go. The supervisor shall verify the account number and date of the applicable SB Interest rate and then click on Submit.
(c). After, modification of interest rate as SBRAT using HINTTM as explained above, Account should be closed using HCAACTD with current BOD date as closure value date, closure reason code as NORML and ‘Collect Penal Int’ flag as No.
(iii). Closure of account partially, to the extent of excess deposit:
(a). If part of the deposit amount becomes excess from the date of opening itself,
(i). Interest rate need not be modified in HINTTM. Closure should be done using HCAACTD as follows to ensure that SB interest will be applied for the amount being withdrawn.
(ii). The Counter PA shall invoke HCAACTD menu and in the criteria screen excess deposit amount has to be entered instead of the entire principal amount. The CPA should ensure that Closure Value Date is the BOD Date and the CPA should enter Closure Reason Code as NORML in Closure Exceptions tab. Then, Interest Code field gets enabled in Closure Details tab. The CPA should enter SBRAT in the Interest Code and submit.
(iii). The Supervisor shall verify the closure using the menu HCAACVTD.
(b). If part of the deposit becomes excess after the date of opening,
(i). The Counter PA has to modify the interest rate to SBRAT using HINTTM Menu and Supervisor shall verify the same.
(ii). Then, the Counter PA shall close the account invoking menu HCAACTD. The CPA shall enter the excess deposit amount in the criteria screen and he should ensure that Closure value date is current BOD date. The CPA has to enter closure reason code as NORML in Closure Exceptions tab and Submit after visiting Closure Details Tab. The Supervisor shall verify the same by invoking menu HCAACVTD.
(iii). The Counter PA, by invoking menu HINTTM, should modify interest rate to MISGN with start date as account opening date to ensure that original rate of interest is applied to the balance amount in the account. A Warning message will appear during modification regarding start date can be accepted. Then, the Supervisor shall verify the same in HINTTM.
NOTE: If current date or date of death is entered as start date while changing the interest rate back to MISGN, wrong interest rate will get applied for the monthly interest payable on the balance left in MIS account.
(c). If the MIS account has already matured and the date of death/excess deposit falls before maturity, then Interest to be recovered from the Depositor, if any, needs to be calculated by the Counter PA. The Supervisor / SPM after verification of the calculation will submit the case to the Head Postmaster who in turn will issue order for interest adjustment by using HIARM Menu by the Supervisor, SBCO. The Supervisor, SBCO will make HIARM entry with applicable date as BOD date and it should be done for Debit Interest & Credit run indicator. After, adjustment is done by the SBCO, it will be communicated to the Post Office concerned by the Head Postmaster and the amount entered as Interest Adjustment Register will get recovered from the principal amount during closure. Note: In all the scenarios explained above, SOL user should check Trial Closure in HCAACTD prior to actual closure, to ensure that interest calculation happens as expected.
