Introduction of “Basic Savings Accounts” under Post Office Savings Account Scheme 2019: SB Order No. 08/2021

Introduction of “Basic Savings Accounts” under Post Office Savings Account Scheme 2019 to facilitate opening of Zero Balance Accounts by beneficiaries of any Government Welfare Scheme and reduction in account maintenance fee on PO Savings Account – SB Order No. 08/2021 – Dated 30.04.2021

SB Order No. 08/2021

F.No. 113-03/2017-SB(Pt-I)

Govt. of India

Ministry of Communications

Department of Posts

(FS Division)

Dak Bhawan, New Delhi-110001

Dated: 30.04.2021

To,

All Heads of Circles / Regions

Subject: – Introduction of “Basic Savings Accounts” under Post Office Savings Account Scheme 2019 to facilitate opening of Zero Balance Accounts by beneficiaries of any Government Welfare Scheme and reduction in account maintenance fee on PO Savings Account – regarding.

*****

Madam / Sir,

The undersigned is directed to say that Ministry of Finance (DEA) vide its O.M. No. 14/10/2021-NS dated 13.04.2021 duly appended notification No. G.S.R. 257(E) dated 09.04.2021 has incorporated another category of PO Savings Account called “Basic Savings Account” under new inserted paragraph 3 of Post Office Savings Account Scheme 2019 and reduction in Account Maintenance Fee on PO Savings Account. Copy of notification is attached.

2. Account Maintenance Fee prescribed in rule 4(6) of Post Office Savings Account Scheme 2019 has been revised from Rs. 100 (One hundred rupees) to Rs. 50 (Fifty) inclusive of GST. Account Maintenance Fee will not be applicable on Basic Savings Account.

3. Basic Savings Account has been restored through aforesaid gazette notification. The procedure to be followed for opening and operating these accounts is given below :-

i) A registered adult member of any Government Welfare Scheme can open Basic Savings Account at any Post Office including GDS Branch Post Offices.

ii) A guardian of a minor whose name is registered for any Government Welfare Scheme can also open Basic Savings Account on behalf of minor.

iii) Only one Basic Savings Account can be opened by the beneficiary and guardian of beneficiary.

iv) Any Government benefit and any other deposit can be made in these accounts.

v) Basic Savings Account will be governed by Post Office Savings Account Scheme 2019 & Government Savings Promotion General Rules,2018.

vi) Only a single account can be opened under Basic Savings Account.

vii) The depositor who desires to open Basic Savings Account under this category has to provide copy of letter/card issued by a competent authority of any State or Central Government Department mentioning name of beneficiary under any welfare scheme, copy of letter/ Aadhaar card issued by UIDAI, Account Opening Form & KYC form.

viii) The postmaster concerned will compare copy of this document with the original under his/her dated signatures.

ix) While opening Basic Savings Accounts, scheme code and registration / enrolment / reference number of the beneficiary contained in letter/card issued by competent authority of any State of Central Government or letter/card number and date should be entered in the field provided for entering Job Card No. in Finacle/Sanchay Post and Aadhaar no. of the beneficiary.

x) All other formalities applicable to PO Savings Account i.e. Specimen Signature, issue of PR in GDS Branch Post Offices, issue of passbook etc. should be followed.

xi) Interest will be calculated and credited in Basic Savings Accounts by following the normal procedure laid down for PO Savings Account.

xii) All existing Basic Savings Account will also be incorporated and treated as Basic Savings Account.

xiii) Other facilities like Cheque Book, ATM Card, eBanking, mBanking may be availed by Basic Savings Account holders, subject to fulfillment of eligibility conditions for these services. For the purpose minimum balance of Rs. 500 is to be maintained by account holder and Basic Savings Accounts may be converted in to PO Savings Account.

4. Where circle received proposal from State Government for bulk account opening under any Governments Welfare Scheme, Circle may proceed for bulk account opening after taking list of beneficiaries, AOF, KYC form, Aadhaar from respective State Government/Beneficiaries.

5.This is issued with the approval of DDG (FS).

Encl: As above

Your’s Faithfully,

(Devendra Sharma)

Asst. Director (SB-II)