Sub: Regarding Extension of TD accounts – Reg.,
Ref : POSB CBS Manual Corrected upto 31.12.2021-reg
This is regarding strictly follow up the “Rule No 101, Chapter 7 of POSB (CBS) Manual corrected upto 31.12.2021” regarding Extension of TD accounts.
It is intimated vide SBCO, some of the counter PA/SPM wrongly selected renewal option at the time of opening of TD accounts through the Finacle menu CMISAOP without the customer’s request application in the form of “SB-EXT1”.
The rule cited above regarding Extension of TD accounts refers the following
(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 (SBEXT1) 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:
TABLE
Sl.No | Category of the Account | Period from date of repayment by which option for extension may be exercised |
1. | One - year | Six months |
2. | Two - year | Twelve months |
3. | Three – year | Eighteen months |
4. | Five - year | Eighteen months |
(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.
Hence, all the PMs/SPMs are strictly instructed to adhere the rules regarding POSB and insist the counter PA who have been working in your office to work according the POSB rules. The PMs/SPMs are reiterated to accord top priority regarding extension of TD accounts at the time of opening and the existing TD accounts.
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