Monthly Income Scheme account -Who can open?

1. Monthly Income Scheme account -Who can open? MIS Account can be opened by:- Single- By an adult A guardian on behalf of minor or person of unsound mind A minor who has attained the age of 10 years in his own name. Joint- Two or three adults.

2. Types of MIS Account Single account Single account can be opened by an adult or a minor of not below the age of 10 years in an individual’s name. A blind or illiterate or physically handicapped adult can either open account individually or through a literate agent. The Supdt. of Mental Hospital or a guardian can open MIS account on behalf of a person of unsound mind.

3. Types of MIS Account Joint account Joint account can be opened by two or three adults to be operated by them (i) jointly or by survivor(s) called Joint-A (ii) either or survivor called Joint-B. Joint account cannot be opened by an adult and minor. Similarly, two or three minors cannot open joint account.

4. Types of MIS Account Minor Account Minor account can be opened by Father or mother or in case both father and mother are not alive by a legal guardian under the law in force from time to time. For opening of minor account, name of minor, his/her date of birth and date of maturity has to be filled up in the account opening form (SB-3). A minor of 10 years age can open independent account. The guardian cannot open an account on behalf of the minor when the minor has himself opened his account directly. Both mother and father cannot open one account each on behalf of same minor.

5. Number of MIS Accounts An individual can open any number of single or Joint accounts in one post office with in the maximum limit. Minor accounts can be opened in addition to the above accounts.

6. Passbook A new passbook used for all schemes has been introduced which has space for pasting of photo also. In computerized offices, passbook is updated through passbook printer. This passbook contains main features of all the schemes and revised instructions for the users. The passbook must have signature of postmaster with designation stamp.

7. Minimum amount required for opening of MIS account On or after 1.8.2007, a MIS account can be opened with minimum deposit of Rs. 1500/-(One thousand Five hundred) and account can be opened in multiple of Rs.1500/-.

8. Maximum balance in MIS Account On or after 1.8.2007, maximum amount in Single account = Rs.4.5 lakh Joint Account = Rs.9 Lakh. For this limit, balance in all types of MIS accounts held by the depositor in all post offices will be taken together. For the purpose of maximum balance, the depositor’s share in the balance of a Joint account shall be taken as one half or one third of such balance according as the account is held by two or three adults.

9. Example If A has invested Rs.4.5 lakhs in all single accounts including minor accounts, he cannot open joint account with any other depositor. If A has invested Rs.3 lakh in all single accounts, he can invest Rs.1.5 lakh jointly with one of two adults as his share. Three adults B,C,D can open a joint account of Rs.9 lakh and their individual share will be Rs.3 Lakh each. B,C,D can also invest Rs.1.5 Lakh each either individually or with any other joint holder

10. MIS Account can be opened by cash/cheque/draft/maturity value of any savings instrument. In case of account opened by cheque/draft, date of realization of amount into Government account will be the date of opening of account.

11. Subsequent deposit No subsequent deposit in MIS account can be made before maturity.

12. Subsequent withdrawal No subsequent withdrawal is allowed in MIS account before the expiry of a period of 5 years from the date of opening of an account. Premature closure of the account is permitted any time after expiry of one year from the date of opening of account. A deduction of an amount equal to 2 % of the deposit will be made in cases where accounts are prematurely closed before expiry of 3 years. If the account is closed after the expiry of three years from the date of opening of such account, a deduction of 1 % of the deposit will be made.

13. Nomination Nomination facility is available in all types of MIS accounts except minor accounts. Nomination can be registered or cancelled or varied at any time after opening of account. The depositor can nominate any person, Institution, Association, Union, Clubs, and Organization etc.

14. Interest The interest will be payable monthly to the Depositor on completion of a month from the date of deposit. If the interest payable every month is not drawn by the depositor, such interest will not earn any additional interest.

15. BONUS

16. DEATH OF DEPOSITOR BEFORE MATURITY Account may be closed and deposit refunded along with interest up to the month preceding the month in which refund is made. There will be no deduction of 2% or 1% of the deposits in such cases as in the case of premature closure. The nominee/heir cannot continue the account in his name.

17. AUTO CREDITS OF INTEREST On the written request from the depositor, the interest payable monthly or maturity value will be credited by the post office in the savings account of the depositor held at the post office where the deposit under the scheme is held.

18. POST DATED CHEQUES The depositor may opt for payment of interest through Post dated cheques.

19. ROUNDING OF INTEREST The interest shall be rounded off to nearest multiple of rupee one and for this purpose any amount of 50 paise or more shall be treated as rupee one and any amount of less than 50 paise shall be ignored.

20. INTEREST When deposit is made on 29th , 30th and 31st and if these dates do not come in the following month, the payment of monthly interest will be made on the last day of the following month.

21. IF LIMIT EXCEEDS The amount deposited in the account in excess of the prescribed limit will be refunded with interest at the rate applicable to savings account from the date of deposit till date of issue of notice to the depositor to withdraw the excess amount. The MIS interest paid if any on the excess amount will be adjusted from the amount payable.

22. Post Maturity Interest Post maturity interest at the rate applicable to savings accounts will be allowed for completed months from the date of maturity to date of payment PMI on the amount due inclusive of bonus if any on the date of maturity.

23. Transfer of account The Depositor will present the application for transfer (SB 10b) at the counter The Counter PA will verify the signature of applicant from office record After tallying balance in the Passbook, Counter PA issue receipt to the depositor. In case of any discrepancy, Passbook will be retained and receipt from SB-28 will be issued to the depositor. Process of transfer of account should then be followed.

24. Issue of Duplicate Passbook If a passbook of a depositor is lost or destroyed, he/she should be required to make an application in the prescribed format. A fee of Rs.10/- is required to be paid in the shape of postage stamp to be fixed on the application at the required place. In case of joint account either ‘A’ type or ‘B’ type, both depositors have to sign the application form. In case passbook is lost from the custody of post office, no fee should be charged from the depositor.

25. Status of Joint account after death of one depositor.. In case of death of one of the joint account holder, the account will be treated as single from the date of death of the account holder and the surviving depositor will have to withdraw the excess amount over and above the maximum limit of investment by single depositor. If this amount is not withdrawn, the excess amount will carry interest at the rate of savings account only from the date of death and amount of MIS interest paid on such amount will be adjusted from the amount payable.

26. Thank You