Discontinued Account

1. Discontinued Account • If there are more than four monthly defaults, the account shall be treated as discontinued. • Revival of the account shall be permitted only within a period of two months from the month of fifth default. • An account, in which defaulted instalments are deposited with default fee shall not be treated as discontinued. • No further deposit can be accepted in discontinued account if not revived.

2. Method of calculation on interest in case of premature closure after three years:- • (a) If advance deposits have been made in the account, the premature closure will be allowed only after the period of advance deposits is over. • (b) Discontinued RD account can be closed prematurely if all other conditions are satisfied. • (c) The interest bearing balance will be arrived at and interest calculated on deposits as for savings accounts and the account will be treated as savings account for all purposes.

3. Method of calculation ...... • (d) Interest bearing balance will be the lowest balance at credit of the account between the close of 10th day and end of the month. • (e) The interest shall be allowed only on sum of complete rupees and shall be rounded off to nearest multiple of one rupee and for this purpose 50 paise or more shall be treated as one rupee and any amount less than 50 paise shall be ignored. Rule No.

4. Method of calculation ...... • (f) The interest recovered on the withdrawal repaid and defaulted installments will be refunded at the time of closure of account. • (g) The interest will be calculated on financial year basis as is done in savings account and compounds annually. • (h) The interest calculation sheet should be prepared in duplicate. The upper copy should be attached to the account closure form and lower copy should be retained in the ledger. Rule No.

5. Deposit of RD instalment from Savings Account. • A depositor can deposit his/her monthly instalment of RD account from his/her savings account. • For this, the depositor will have to give written application to the post office and should have savings account in the same post office.

6. Extension of RD Account • The depositor on expiry of the period of 5 years from the date of first deposit may at his option • (a) continue to make deposits in his account or • (b) keep the maturity value of the deposits • No written application is necessary for this. • The deposits can continue to be made after a period of 5 years from the date of first deposit up to a maximum period of 5 years.

7. Extension of RD Account.... • A second Pass Book in continuation of the first one will be issued to the depositor by Post Office for making entries of deposits for the extended period. • During the extended period of 5 years the deposits can be discontinued at any time and a/c can be closed. Rule No.

8. maturity value of a discontinued account • In case maturity value of a discontinued account is retained after the date of maturity- Depositor shall be entitled to a simple interest at the rate applicable from time to time to savings account for completed months from the date of maturity to date of payment. SB order 31/2011.

9. Post Maturity Interest • In case maturity value is retained after 10 years • Post Maturity Interest shall be payable at • simple interest at the rate applicable from time to time to savings account. • For completed months from the date of maturity to date of payment. SB order 31/2011.

10. Protected Saving Scheme • Under PSS Scheme if the depositor dies, full maturity value is paid to the nominee/legal heir • Conditions : • Benefit is extended to only one account • Available to accounts of denomination up to ` 50/- • The age of the depositor at the time of opening the account should be between 18 and 53 years • The instalments should have been paid for 24 months

11. Protected Saving Scheme…. • 2 years should have been completed • During first 24 months, no withdrawal should have taken place • Account should not be a discontinued one • Claim should be preferred within one year from the date of death of the depositor • The Head Postmaster will settle the claims

12. Commission to agents • These agents will be paid commission at the rate of 4% of deposits in recurring Deposit Accounts. • The commission on subsequent deposits in RD accounts will be paid to those agents through whom the accounts were opened. • The other agents cannot make subsequent deposits in these accounts which were not opened through them.

13. Commission to agents..... • The particulars of post offices with which the agent is authorized to transact business are recorded in the Certificate of Authority of the agent. • The agent can deposit money at these post offices and claim commission at source. Rule No.

14. Change of name of depositor • A depositor can change his name- • On adoption or otherwise • In case of female depositor on marriage

15. Conversion of account from Joint to Single or vice versa. • On a written application:- • A single account in the name of an adult can be converted into a joint account in the name of the original depositor and another adult. • A joint account in the name of two depositors can be converted into single account.

16. Conversion of Minor account after attaining majority • In case of minor attaining majority • The minor account opened through guardian will be converted into individual account in the name of minor • On submitting revised account opening form (SB-3) • The signature of Minor become major has to be attested by the guardian on revised SB-3

17. In case date of maturity falls on Sunday or Holiday • In case date of maturity falls on Sunday or Holiday, the payment shall be deemed to be due on the business day immediately preceding the date of maturity.

18. Thank You Rule No.