SB Order 05/2025: Cancellation of ₹50 Nomination Change Fee in Post Office Savings Schemes | Effective April 2025

SB Order 05/2025: Amendment to Government Savings Promotion Rules

Also read :SB Order 11/2023 : Rs 2000 Denomination Banknotes - Withdrawal from Circulation - DOP Clarification

Also read :SB Order 04/2023 - Revision of interest rates for Small Savings Schemes w.e.f. 01.04.2023

1. Introduction

The SB Order No. 05/2025, issued by the Department of Posts (Financial Services Division), Government of India, on 3rd April 2025, communicates a key amendment to the Government Savings Promotion General Rules, 2018. The amendment eliminates the ₹50 fee previously charged for cancellation or change of nomination in Post Office savings schemes. This change aligns with the government’s efforts to streamline financial services and enhance customer convenience.

2. Key Amendments

• Deleted Provision: The fee of ₹50 for "Cancellation or change of nomination" (under Schedule II of the 2018 Rules) has been removed entirely.
• Legal Basis: The amendment is made under Section 15 of the Government Savings Promotion Act, 1873, via Gazette Notification G.S.R. 214(E) dated 2nd April 2025.
• Effective Date: The change took effect immediately upon its publication in the Official Gazette.

3. Implementation Directives

• Circulation: All Heads of Circles/Regions must disseminate the order to Post Offices and display it on public notice boards.
• Stakeholder Compliance: Recognized Federations/Unions/Associations, the National Savings Institute, and audit authorities are copied for adherence.
• Digital Upload: The CEPT (Centre for Excellence in Postal Technology) is tasked with publishing the order on official platforms.

4. Rationale and Impact

• Customer-Centric Approach: Removing the fee reduces bureaucratic hurdles for nominees in savings schemes (e.g., PPF, NSC, SSY).
• Operational Efficiency: Post Offices will no longer process payments for nomination changes, simplifying transactions.
• Legal Continuity: The amendment follows prior updates to the 2018 Rules (via G.S.R. 238(E) and 488(E)).

5. Highlights

• Target Keywords: "Post Office nomination fee," "SB Order 2025," "Government savings rules amendment."
• Authority References: Ministry of Finance (DEA), Gazette Notification G.S.R. 214(E).
• Actionable Clarity: "No more ₹50 fee for nomination updates in Post Office schemes."

6. Conclusion

This amendment reflects the government’s commitment to affordable and accessible savings schemes. By eliminating the nominal fee, it encourages more citizens to utilize Post Office financial services without cost barriers. Departments must ensure swift compliance to maximize public benefit.

Note: The Hindi version of the Gazette notification is attached, as mandated.