MONTHLY INCOME SCHEME - PAYMENT OF INTEREST
1. The deposit under the scheme will bear interest at the rate fixed from the date of opening of account. The interest will be payable monthly to the depositor on completion of a month from the date of deposit. If the interest payable every month is not drawn by the depositor, such interest will not earn any additional interest.
2. If depositor authorizes the Post Office, the interest payable monthly will be credited by the post office in the Post Office Savings Account of the depositor irrespective of the post office where the account stands or in the Bank Savings Account through ECS Mandate.
3. The depositor can opt for payment of interest by:
(i) Automatic credit in his/her savings account(ii) Filling up application for withdrawal(iii) By giving ECS mandate.
4. Automatic credit in savings accounts: A depositor can have his/her monthly interest credited into his/her savings account either at the time of opening of MIS account or at later stage, by giving mandate in writing to the post office subject to the condition that CIF of MIS and Savings Account is the same. The procedure for automatic credit will be as below: -
(a) The depositor will present an application in the prescribed form (SB-83) to the post office where the account is opened, requesting for the credit of the monthly interest due on his/her MIS account to his/her savings account. The account number of MIS and Savings account will be furnished in the application.
(b) On receipt of the application, the counter Assistant will compare the signature on the application with the specimen signature on record in Finacle CBS Application and give an acknowledgement to the depositor for the application, if the depositor desires to have acknowledgement.
(c) The depositor will be informed that he/she will be required to present the passbook at least once in six months for updating through Passbook printer at any CBS Post Office.
(d) If the depositor cancels his/her request for credit of interest in savings account or if either the MIS account or the savings account or both are transferred from the office, or if savings account is closed, an entry will be made on the original application 'Cancelled' under the signature of the Postmaster/ Sub Postmaster. In Finacle CBS Application, Counter PA shall invoke CMISIAM menu and remove Savings Account from the Interest Credit Account field and Supervisor has to verify the same. The depositor, if he desires to have the facility after transfer of the account, will have to make a fresh application to the new office.
5. (a) By filling up of Withdrawal application form : If depositor has not given any mandate for credit of interest into Post Office savings account or into Bank Account through ECS, interest will be credited into MIS Sundry Office Account SOLID+0337.
(b) When depositor attends post office counter for taking payment of monthly interest, depositor has to present an application for withdrawal (SB-7) for the amount of interest. The amount will be paid either in cash or by cheque at the option of the depositor.
(c) If the depositor opted payment by cash, Counter PA should examine the withdrawal form by following the procedure laid down for withdrawal from Savings Account. After satisfaction, Counter PA should invoke HTM menu and follow the procedure laid down for payment of interest in TD Account.
(d) If depositor opts for payment by cheque, interest amount should be credited into office account SOLID+0340 and cheque should be given to the depositor.
(e) If office is a SO and is not authorized to issue cheque, the Sub Postmaster will obtain cheque for the required amount in the name of the depositor from the Head Office.
6. By giving ECS mandate: The MIS Account holder who wants to take payment of monthly interest into his/her bank account using ECS mode has to submit ECS mandate form along with cancelled cheque of bank account to the Post Office where MIS account stands. Counter PA shall match the signatures of depositor(s) on the mandate form and signatures available in Finacle CBS Application using IES menu. Counter PA shall enter ECS mandate into Finacle CBS application using CMISAM menu and Supervisor shall verify the same using his/her own login ID. Procedure laid down in Appendix - IV pertaining to ECS should be followed.
7. The interest shall be rounded off to nearest multiple of rupee one and for this purpose any amount of 50 paisa or more shall be treated as rupee one and any amount of less than 50 paise shall be ignored. Finacle CBS Application shall ensure that depositor will not get excess interest due to rounding off of the same. Therefore, the amount paid excess due to rounding off to the next rupee shall be adjusted during next month.
8. If the date of payment of monthly interest falls on Sunday or a holiday, the payment shall be deemed to be due on the business day immediately preceding that Sunday or a holiday.
9. If the deposit is made on 29th, 30th and 31st of a month and if these dates do not come in the following month, the payment of monthly interest shall be made on the last date of the following month and if such last day is a holiday, monthly interest shall be paid on the preceding day.
As per SB Order No. 4/2022, linking of POSB account to MIS/TD/SCSS accounts for crediting interest has been made mandatory.
Click here for SB Order No. 4/2022
