The Department of Posts has issued clarifications related to the operation of Post Office Savings Accounts through a circular dated November 5, 2021. The circular provides clarification in respect of whether the mode of operation of Post Office Savings Account can be changed from single to joint or vice-versa. Similarly, it also sheds light on whether a person can open basic savings account With a normal post office savings account. It should be noted that the bank does not allow an individual to operate a basic savings account along with a normal bank account.

Have a look at all the clarifications issued by the department regarding operation of Post Office Savings Account:

1. issue fresh passbook In lieu of old passbook in any other CBS PO
   The procedure for issue of new passbook in place of old/used passbook is prescribed in Rule 44 of POSB CBS Rules. But it is not clear whether the new passbook of account standing in CBS Post Offices (PO) can be issued by any other CBS PO. It is clarified that any CBS PO can issue a new passbook in lieu of the old / defective passbook to the account standing in any other CBS PO by following the procedure prescribed in Rule 44 of the POSB CBS Rules.
2. Opening of Basic Savings Account by a person who already has a Post Office Savings ‘Single’ Account
   The Basic Savings Account was introduced through amendment in POSA Scheme 2019 vide GSR No. 257(E) dated 9th April 2021. As per the notification, this type of account has been inserted under sub-paragraph (2) of paragraph (3) of the POSA scheme. As per the provisions made in paragraph (3) (e) of the 2019 POSA Scheme, only one account can be opened by an individual as a single account. Since the Basic Savings Account is a separate type of account and has been inserted as sub-paragraph (3) below sub-paragraph (2) of paragraph (3) of POSA Scheme 2019, it is clarified that an individual shall be a PO can open Savings Single Account. A basic savings account and vice versa.
3. Limit on deposits in Branch Post Offices when deposited through Withdrawal Form (SB’7) or Cheque.
   Orders for Acceptance of Checks and Withdrawal Forms (SB-7) for account opening and subsequent deposit at Branch Post Offices have been issued in SB Order No. 2212020 dated 18.06.2020 and SB Order No. 32/2020 dated 23.09.2020. Small savings schemes eg. MIS, SCSS, KVP, NSC and PPF were extended in SB Order No. 27/2O20 dated 23.07.2O20 at Branch Poet’s Office. In SB Order No. 3/2021 dated 05.03.2021 the cash acceptance limit in one day at Branch Post Office has been increased from Rs.25,000 to Rs.50,000. In this connection it is clarified that in respect of subsequent deposits/deposits for opening any type of account through withdrawal form and cheque, there is no such limit of Rs.50,000/- in a day in the account.
4. change in Guardian in any account
   As per Rule 10(a) of GSPR 2018, in the event of death of the guardian, the successor guardian shall be eligible to operate the account of a minor or a person of unsound mind, as the case may be. In this regard, it is clarified that change of guardian is permissible only on the death of the existing guardian and on the orders of any court. In such cases, the death certificate of the existing guardian or a court order as the case may be, should be submitted by the new guardian along with a fresh application form (SB’AOF) and KYC documents duly signed by the new guardian.
5. Change of Joint Depositor in joint account
   Rule 48(2) of POSB (CBS) Rules is deemed to have been repealed vide SB Order No. 12/2O20 dated 14.02.02O. As per provision in Rui 8 of GSPR 2018, an account opened as a single account cannot be subsequently converted into a joint account or vice versa. Also there is no provision in GSPR 2018 for change of depositors in any joint account. It is clarified that change of depositor or addition of new depositor in joint account is not permitted. Further, it is clarified that change of order of the depositor (first/second and third) in one account is also not permitted, keeping in view the fact that different returns/statements are filed with the Income Tax authorities on the basis of PAN number. are filed on. First depositor in an account.
6. Depositor’s presence at the time of account opening
   As per Rui 4 of GSPR 20L8, only a resident citizen of India is eligible to open an account under National (Small) Savings Schemes and as per Rule 5 of GSPR 2018, the account can be opened by the depositor either by visiting the account office. In person or through permitted electronic mode including internet or mobile banking application of the concerned Government Savings Bank in accordance with the procedure approved by Reserve Bank of India from time to time. It is clarified that. If the account is opened in a post office, the presence of the depositor is mandatory at the time of opening the account. If the account is opened by the guardian on behalf of the minor or on behalf of a person of unsound mind, the presence of the guardian is mandatory. iii. Whenever an account under the schemes identified for opening through authorized agents (SAS and MPKBY) is opened through authorized agents (SAS and MPKBY), the presence of the depositor is optional. iv. Further, if the account opening forms and KYC documents are collected by the post office staff and the depositor’s signature is obtained in the presence of any authorized officer during the POSB account opening drive / fair / door to door campaign etc., then such The presence of the depositor is not mandatory. .
7. POSB check facility in savings joint account opened jointly by a literate depositor and an illiterate depositor
   As per the provisions of POSB CBS Manual and POSB Manual Volume I, for availing check facility, the depositor should be literate and should be able to sign in running hand besides maintaining a balance of Rs. 500/- in the account. Check facility is not provided in accounts operated by minor himself. There is no clarity on issuance of checks for joint savings accounts opened by literate and illiterate depositors. As per the clarification issued by MoF, all types of operations in Joint B account can be done by any depositor, it is clarified that extension of check facility in Joint B accounts opened jointly by an illiterate and literate depositor subject can be done. Provided that the check shall be used only by the literate depositor who can sign in by hand and the illiterate depositor shall not use the check facility of the account. Any check used by an illiterate depositor of such account will not be considered.
8. Opening of a joint account by two or more illiterate depositors or jointly by an illiterate depositor and a literate depositor
   As per Rule 5(5) of GSPR 2018 which was circulated in SB Order No. 13/2019 dated 18.12.2019, a blind or visually impaired or illiterate depositor can open a joint account with a literate depositor. Further, there is no restriction in the rules of any scheme for jointly opening of joint account by two or more illiterate depositors. It is clarified that a joint account can be opened jointly by two or three illiterate depositors or jointly by an illiterate depositor and a literate depositor.