MONTHLY INCOME SCHEME - PREMATURE CLOSURE
The maturity period of MIS account is 5 years. No withdrawal is allowed in MIS accounts till its maturity. However, an account can be prematurely closed after expiry of one year from the date of opening with certain conditions:
a) A deduction of an amount equal to two per cent of the deposit will be made in cases where accounts are prematurely closed before expiry of 3 years.
b) If the account is closed after the expiry of three years from the date of opening of such account, a deduction of one per cent of the deposit will be made.
In the Post Office accounting, full amount of deposit invested will be shown as paid and the amount of discount recovered will be shown on the receipt side. On the warrant of payment, the details of principal and discount recovered will be shown separately and receipt of the net amount payable will be taken from the depositor. In the common long book / list of transactions and consolidation generated from HFINRPT menu of Finacle CBS, total amount of deposit will be shown as withdrawn in the withdrawal column and discount recovered shown under a separate column.
Rule-108 of POSB CBS Manual.
The impact of Premature closure is furnished in this link
