The government has made these three changes in Post office savings account that every account holder should know. These changes were announced via an e-Gazette notification issued by the Department of Economic Affairs, Ministry of Finance on July 3, 2023. The changes are known as the Post Office Savings Account (Amendment) Scheme, 2023.
Change in number of account holders
In post office savings account, the maximum number of joint account holders was two which is now increased to three.
According to the e-Gazette notification: In the Post Office Savings Account Scheme, 2019 (hereinafter referred to as the “principal scheme’’), in paragraph 3, in sub-paragraph (1), in clause (b), for the words “two adults jointly”, the words “upto a maximum of three adults in joint names” shall be substituted.
Withdrawals from the account
The government has changed the withdrawal application from Form 2 to Form 3 for Withdrawals from the account for not less than fifty rupees may be made by presenting passbook.
Earlier rule as per the Post Office Savings Account Scheme, 2019, “Withdrawals from the account for not less than fifty rupees may be made by presenting pass book alongwith Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means.”
According to the Post Office Savings Account (Amendment) Scheme, 2023, “Withdrawals from the account for not less than fifty rupees may be made by presenting passbook along with application for loan or withdrawal in Form-3 of the Government Savings Promotion General Rules, 2018 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means.”
Interest on deposits in an account
On the lowest amount in an account between the closing of the tenth day and the end of the month, interest at the rate of 4% annually shall be permitted. Such interest shall be calculated and credited in the account at the end of each year.
Under this, in the event of death of an account holder, the interest in his account shall be paid only in the end of the month preceeding the month in which the account is closed.
Now as per new the Post Office Savings Account (Amendment) Scheme, 2023, “In the principal scheme, in paragraph 5, in sub-paragraph (5), for the words “in the end of the month”, the words “till the end of the month” shall be substituted.”
Source By: economictimes
