TIME DEPOSIT - EXTENSION OF MATURITY AND REINVESTMENT
(1). Where a deposit in an account has become due for repayment, the account holder may at his/her option by making an application in the prescribed form (SB-EXT1) to the accounts office in prescribed form may further extend the account for another tenure for which the account was initially opened.
Where an extension is made under sub paragraph (1) above, the option for extension shall be exercised within the period as specified in the table below:
1 Year TD - Within Six months from the date of repayment
2 Year TD - Within 12 months from the date of repayment
3 Year TD - Within 18 months from the date of repayment
5 Year TD - Within 18 months from the date of repayment
(2). Where option of extension of deposit is exercised within the period specified above, interest applicable to the category of account under the Scheme on the date of maturity of original deposit shall be payable.
Note: If option of extension not exercised by the account holder within the period specified above, Post Maturity Interest (PMI) shall be paid in such account from the date of maturity to date of payment at the rate of PO savings account applicable from time to time.
(3). The account holder shall be allowed to extend the account as per sub-paragraph (2) only twice after the initial repayment date.
(4). Option to extend the account as per sub-paragraph (1), may be exercised by the account holder at the time of opening of the account also. However, the account holder may revoke the option to extend the account any time before the date of repayment. (See clarification below)
REINVESTMENT
When a depositor/investor applies for reinvestment of any amount payable to him in any of the small savings schemes operated by the post office, the amount should be transferred to the Savings Account of the depositor, after obtaining Account Closure form & passbook for matured TD Account, cheque / withdrawal form for withdrawal from Savings Account and AOF with pay-in-slip for new account. New account opened should be funded by debiting the Savings Account of the amount sought to be re-invested.
CLARIFICATION ON SB ORDER 7/2020:
As per FS Division letter No. 10/17/2020-FS (Part-I) dated 18.01.2023, the above provisions implemented vide Rule-6 of NSTD Rules, 2019 are applicable to TD accounts opened on or after 18.12.2019 and in respect of accounts opened prior to 18.12.2019, initial repayment date shall be the date of maturity of the TD account falling on or after 18.12.2019,
Click here for SB Order 7/2020 and Clarification dated 18.01.2023
