RECURRING DEPOSIT - CLOSURE OF ACCOUNT
(i). The amounts paid into a RD account are repayable at the end of 5 years from the date of first deposit. Thus, if a RD account is opened on 10.12.2017 its maturity value will be payable only on or after 10.12.2022 and not earlier even if some last instalments are paid in advance. In an account which has been treated as discontinued, proportionate amount based on the total number of instalments deposited is payable on maturity. The maturity values of accounts are available in the gazette notification issued by MOF from time to time. When the number of defaults in an account is within the prescribed limits the date of maturity may be extended by the number of months for which default has occurred during which period the depositor may continue payment of the defaulted instalments without penalty. If the date of maturity of the account with permissible defaults is not extended by the depositor, the maturity value will be paid for the actual number of instalments on proportional basis.
(ii) The depositor will have to apply for closure in the form of application for closure (SB-7A) and present it at the post office along with the Passbook.
(iii) If maturity value of a discontinued account is retained by the account holder after the date of maturity, interest at the rate applicable to this Scheme for completed years, and at the rate applicable to the Post Office Savings Account for completed months. If the period is less than a year, POSA rate of interest shall be paid on the maturity value on the date of maturity. The interest in this case may be paid up to a maximum period of five years from the date of maturity of the account.
Note 1: The depositor can get his/her maturity amount in his/her bank savings account through ECS facility following the procedure prescribed in Appendix – IV of CBS Manual. If the depositor could not close the loan account and if the RD account is to be closed by adjusting the loan amount in the maturity amount of RD Account, ECS facility cannot be availed.
Note 2: While closing RD Account for which SI entry exists to SB Account, the SI has to be deleted before closing RD Account.
