As per SB order 07/2020 and POSB CBS Manual Corrected upto 31/12/2021, Page 170 when the amount invested in Time Deposit becomes due for repayment the account holder may at his option by making an application to the accounts office in Form 3 or SBEXT1 may further extend the account.
Hence, the renewal has to be done only when the customer attends the office in person and give Form-3. But Counter PA had been wrongly selected automatic renewal option at the time of opening of new TD accounts without customer’s request application. It is irregular and leads excess payment of Scheme interest instead of PO SA interest..
|
Sl. No. |
Category of the account |
Period from date of repayment by which option for extension may be exercised |
|
1 2 3 4 |
One-year Two-year Three-year Five-year |
Six months Twelve months Eighteen months 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.
At the time of closures all the SPM’s sending the AOF / SB-3 Card without the TD Extension form. It is not correct procedure.
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