Mandatory use of Savings Account for credit of monthly/quarterly/yearly interest in case of MIS/SCSS/TD accounts – SB Order No. 04/2022 SB Order No.
Mandatory use of Savings Account for credit of monthly/quarterly/yearly interest in case of MIS/SCSS/TD accounts – SB Order No. 04/2022
SB Order No. 04 /2022
F. No. FS-10/25/2021-FS-DOP
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi-110001
All Head of Circles/Regions
Subject: Mandatory use of Savings Account (PO Savings Account or Bank Account) for credit of monthly/quarterly/yearly interest in case of MIS/SCSS/TD accounts.
It has come to notice that some MIS/SCSS/TD accounts holders have not linked their savings account (either PO Savings Account or Bank account) for credit of their monthly/quarterly/yearly interest and Interest due in these MIS/SCSS/TD accounts are left unpaid in sundry office account. Further, it has been observed that many TD account holders are not aware of annual interest payment of TD Accounts. Also, many depositors of MIS/SCSS/TD accounts are not aware that undrawn interest shall not earn any interest.
2. MIS/SCSS/TD accounts holders will be able enjoy the following benefits by linking savings account (either PO Savings Account or Bank account) for interest payment.
- Interest credited in savings account will earn additional interest, if interest is not withdrawn directly from MIS/SCSS/TD Accounts.
- Depositors can withdraw due interest without visiting the post office and utilise the same through various electronic means.
- Filling up of multiple withdrawal forms for each MIS/SCSS/TD account can be avoided.
- Depositors may avail facility of automatic credit of interest amount from their MIS/SCSS/TD accounts through PO Savings Account to RD accounts.
3. In order to provide the above benefits to MIS/SCSS/TD accounts holders, to have better control over POSB operations, promotion of digital transactions, prevention of money laundering activities and as a preventive measure to avoid frauds, the competent authority has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of MIS/SCSS/TD Accounts and to issue the following guidelines with immediate effect:
- CEPT, Chennai will provide a list of those active MIS/SCSS/TD accounts not linked with savings account (either PO Savings Account or Bank Account) to all the Circles and CPC (CBS).
- Circles should organize special drive to link savings account (either PO Savings Account or Bank Account) with MIS/SCSS/TD accounts for interest payment either by issuing request letter or contacting those account holders.
- The account holders shall have the option of getting interest from MIS/SCSS/TD accounts credited into his Post Office Savings Account or Bank Account.
- In case of Post Office Savings Account, the account holder shall submit SB-83 Form (Application for availing facility of automatic transfer (Standing Instruction) for linking of MIS/SCSS/TD accounts to his PO Savings Account along with his MIS/SCSS/TD accounts passbook for such an endorsement, and his Post Office Savings Account passbook to the post office for the purpose of verifying authenticity. Thereafter, post office concerned shall follow the procedure prescribed in rule 99(2) of POSB CBS Manual. SB-83 form shall be attached with Account Opening Form (SB-AOF). Necessary remarks should be made in the MIS/SCSS/TD passbook on the last page of the passbook with signature and stamp.
- In case of Bank Account, he shall submit ECS-1 Form (ECS Mandate
Form) along with a cancelled cheque or copy of first page of the passbook of the Bank Account in which he desires to get the interest amount credited along with his MIS/SCSS/TD account passbook for such an endorsement at the post office concerned. Thereafter, post office concerned shall follow the procedure prescribed in rule 99(3) of POSB CBS Manual. SB-83 form shall be attached with Account Opening Form (SB-AOF). Necessary remark should be made in the MIS/SCSS/TD passbook on the last page of the passbook with signature and stamp.
- IPPB shall devise a similar fool proof system to facilitate its customers avail interest credit from MIS/SCSS/TD accounts into their IPPB Savings Account, and inform the Department so that the same will be informed to all concerned.
- Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022.
- In case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest 1s credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque.
- INTEREST PAYMENT IN CASH SHALL NOT BE ALLOWED FROM MIS/SCSS/TD SUNDRY OFFICE ACCOUNT w.e.f. 01.04.2022.
- Payment of MIS/SCSS/TD interest through sundry office accounts (SOL ID+0129, 0130, 0131, 0132, 0335, 0337, 0338) will not be allowed from other SOLs with immediate effect.
- PA / Postmaster concerned shall ensure that no outstanding interest is pending in MIS/SCSS/TD sundry office account for the account to be transferred while effecting the transfer of any MIS/SCSS/TD accounts.
- If any outstanding interest is pending in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid to account holder either through credit in PO Savings Account or through Cheque. Thereafter, account transfer procedure should be initiated.
Note: The PO Savings Account or Bank Account, in which the interest payment is desired by the depositor of MIS/SCSS/TD Accounts, can be either single account type of the depositor(s) or joint account type in which the depositor(s) of MIS/SCSS/TD Accounts should be one of the depositors or guardians in savings account.
4. It is requested to circulate it to all concerned for information, guidance and necessary actions. It may also be placed on the notice board of all post offices in public area.
5. This is issued with the approval of the Director General Postal Services.
Assistant Director (SB-IT)