SB Order 05/2024 - Regularization of accounts opened in deviation of Rules stipulated under Savings Schemes

SB Order No. 05 / 2024

No. FS-113-03/2024

भारत सरकार / Government of India

संचार मंत्रालय / Ministry of Communications

विभाग / Department of Posts

वित्तीय सेवाएं प्रभाग / (Financial Services Division)

Dak Bhawan, New Delhi - 110001

Dated: 21.08.2024

To
All Heads of Circles / Regions

Subject: Guidelines for regularization of accounts opened in deviation of Rules stipulated under National Small Savings Schemes.

Madam / Sir,

Department of Economic Affairs, Ministry of Finance has issued guidelines for processing the cases of regularization of irregularly opened accounts under various National Small Savings Schemes through Post Offices vide OM. No. 14/1/2018-NS-Part (1) dated 12.07.2024. (Copy enclosed)

2. It needs to be noted that the power to regularise irregular small savings accounts is vested with Ministry of Finance. Therefore, all cases pertaining to irregular accounts should be forwarded to this division for regularisation by the Ministry of Finance.

3.

Following six categories have been identified.Relevant guidelines issued by DEA, MOF are as below:

(1). Irregular NSS accounts: These have been assessed to be of the following types.

(a).

Two NSS-87 accounts opened prior to DG Posts' Order. No. 35- 19/90-SB-III dated 02.04.1990:

(i). The earliest/first opened account will get prevailing scheme rate.

(ii). The second account (opened after the first account) will get prevailing POSA rate plus 200 bps on the outstanding balance.

Points (i) and (ii) will be subject to the following conditions:

(iii).

(a).Cumulative deposits in both the accounts put together should

not exceed the applicable deposit limits for each year.

(b). Excess deposits (if any) shall be refunded to the investor without any interest where the investor prefers to continue with the account upon regularisation).

(b). The balance amount in the second account shall be merged with the first account subject to the primary account remaining within the applicable investment ceiling in each year. Post-merger, the primary account will continue to enjoy the prevailing scheme rate of interest. Excess balance in the second account, if any, shall be refunded with Zero percent rate of interest.

(c). Any additional accounts beyond the primary and second account, shall earn zero percent rate of interest from the date of opening of that account. Extension of PPF account by NRI:

(4) For only those active NRI's PPF accounts opened under the Public Provident Fund Scheme (PPF), 1968, where Form H did not specifically ask the residency status of the account holder, POSA rate of interest shall be given to the account holder (Indian citizen who became NRI during the currency of Account) till 30th September 2024. Thereafter, the said account shall earn zero percent rate of interest.

(5).Small Savings scheme account opened under the name of a minor (except PPF and SSA):

Such irregular accounts may be regularised with simple interest. The interest rate for calculation of simple interest on the account should be the prevailing POSA rate.

(6).Regularization of Sukanya Samriddhi Account (SSA) opened by Grandparents, other than Guardian:

(a). In case of accounts opened under the guardianship of grandparents (who are other than legal guardian), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian.

(b). If more than two accounts are opened in a family in violation of Para 3 of Sukanya Samriddhi Account Scheme, 2019, then the irregular accounts shall be closed by treating it as account opened in contravention to the scheme guidelines.

4. All Post Offices are directed to obtain PAN and Aadhaar details of the account holder(s)/ guardian (if not already available) without fail and feed the same in the system before forwarding the regularization requests to this office.

5.All Post Offices shall take urgent action to identify such accounts and inform account holders of the approved guidelines through all channels.

6.All Circles/Regions/Divisions are requested to proactively track cases that need regularization, so as to avoid inconvenience to account holders of the small savings schemes.

7. It is reiterated that the power to regularize irregular small savings accounts is vested with Ministry of Finance only, hence all cases of regularizing irregular accounts should be forwarded to this Division for onward submission to the Ministry of Finance.

8. Only on receipt of the concurrence of Budget Division, DEA, Ministry of Finance for regularization of irregularly accounts opened under various National Small Savings Schemes, the Post Offices shall settle those accounts following the above guidelines.

9. This may be circulated to all the Offices for information and necessary action. Wide publicity may be given through all available means and it may also be exhibited on Notice Boards of all Post Offices.

10.This issues with the approval of competent authority.

Signed by Gourrya

Date: 21-08-2024 18:23:14 (Gourav Jain)

Assistant Director General (DBT/FS-I)

Copy to:

1. Sr. PPS to Secretary (Posts)

2. PS to Director General Postal Services.

3. PPS/PS to Addl. DG (Co-ordination)/Member (Banking)/ Member (O)/ Member(P) /Member (Planning & HRD)/Member (PLI)/Member (Tech)/AS & FA

4. Addl. Director General, APS, New Delhi

5. CGM, BD Directorate / Parcel Directorate / PLI Directorate

6. Sr. DDG (Vigilance) & CVO) / Sr. Dy. Director General (PAF)

7. Director, RAKNPA/ GM, CEPT/ Directors of all PTCs

8. Director General P & T (Audit), Civil Lines, New Delhi

9. Secretary, Postal Services Board/ All DDGS

10. All GMs (Finance) / Directors Postal Accounts / DAP 11. All Sections of Postal Directorate

12. All recognized Federations/Unions / Associations

13. GM, CEPT for kind information and necessary actions.

14. Deputy Secretary, DEA, MOF, NS-II, North Block, New Delhi - 110001.

15. Joint Director & HOD, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi

16. e-file/Guard File

(Gourav Jain)

Assistant Director General (DBT/FS-I)

Source : https://utilities.cept.gov.in/dop/pdfbind.ashx?id=9960