The Department of Economic Affairs, Ministry of Finance, has recently introduced three pivotal changes in the Post Office Savings Account, each carrying significant implications for account holders, according to The Economic Times report.
The report added that these transformative adjustments, collectively known as the Post Office Savings Account (Amendment) Scheme, 2023, were officially communicated through an e-Gazette notification on July 3, 2023. Familiarizing oneself with these changes is imperative for all account holders.
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a-Expansion of Joint Account Holder Limit: A notable modification pertains to the permissible number of joint account holders. Previously restricted to a maximum of two individuals, joint accounts can now accommodate up to three account holders. The e-Gazette notification explicitly states that in the Post Office Savings Account Scheme of 2019, under paragraph 3, sub-paragraph (1), clause (b), the phrase “two adults jointly” has been replaced with “upto a maximum of three adults in joint names.”
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b-Altered Withdrawal Process: The withdrawal procedure has witnessed a substantial alteration, moving from the use of Form 2 to Form 3. Withdrawals exceeding fifty rupees now necessitate the presentation of the account passbook alongside a duly filled and signed Form-3 from the Government Savings Promotion General Rules, 2018. Withdrawals can also be conducted through checks or electronic means if the account balance surpasses the minimum prescribed limit. This stands in contrast to the prior process wherein withdrawals were facilitated by presenting the passbook and Form-2.
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c-Revised Interest Calculation and Crediting: Another significant change involves the calculation and crediting of interest on deposits. Interest, computed at an annual rate of 4 per cent, will be credited to the account at the end of each year based on the lowest account balance between the tenth day and the end of the month. Importantly, in the unfortunate event of the account holder’s demise, the accrued interest will only be disbursed in the month preceding the account’s closure. To reflect this adjustment, the e-Gazette notification stipulates a substitution of the phrase “in the end of the month” with “till the end of the month” within the Post Office Savings Account (Amendment) Scheme, 2023.
