Acceptance of Business from SAS Agents

To view SB order No. 6/2013, please CLICK HERE

Revision of Interest Rates for Small Savings Schemes W.e.f 01.04.2012

Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before 1^st April of that year.  Accordingly, the rate of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under:

Scheme	Rate of Interest w.e.f. 1.12.2011	Rate of Interest w.e.f. 1.4.2012
Savings Deposit	4.0	4.0
1 year Time Deposit	7.7	8.2
2 year Time Deposit	7.8	8.3
3 year Time Deposit	8.0	8.4
5 year Time Deposit	8.3	8.5
5 year Recurring Deposit	8.0	8.4
5 year SCSS	9.0	9.3
5 year MIS	8.2	8.5
5 year NSC	8.4	8.6
10 year NSC	8.7	8.9
PPF	8.6	8.8

Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.

Validity of Cheques reduced from 6 months to 3 months wef 01.04.2012

Bankers' cheques and other monetary instruments will have only a three-month validity beginning April 1, 2012, instead of the existing six months, a Reserve Bank of India (RBI) communique has said.
The change is a consequence of an RBI notification on November 4, 2011.

Cheques, drafts and pay orders will have a validity for three months from the date they've been drawn. Those having cheques and other monetary instruments with six-month validity before April 1 will have to remit them before this date, when the expiry of the validity will be reduced to three months.
After April 1, these instruments will be valid subject to their adherence to the new 3-month rule.

Clarification on TD Premature Closure

F.No.113-01/2011-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 13.12.2011

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Issue of clarifications regarding premature closure of TD accounts.

Sir / Madam,

The undersigned is directed to refer to this office SB Order No. 27/2011 dated 24.11.2011 vide which decisions taken by Min. of Finance regarding changes in POTD scheme effective from 1.12.2011 were circulated.

2. Some circles have asked for clarifications regarding applicability of reduction in interest rate to be charged on premature closure of TD accounts to the old accounts. It is clarified that:-

(i) In case of premature closure of 1 Year, 2 Year, 3 Year or 5 Year account which were opened even before 1.12.2011, if the deposit is withdrawan after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable. The rate of interest shall be 3.5% up to the period 30.11.2011 and 4% thereafter.

(ii) In case of premature closure of 2 Year, 3 Year or 5 Year account which were opened even before 1.12.2011, if the deposit is withdrawan after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate which was applicable at the time of opening of TD account. Interest calculation tables for the TD accounts opened before 1.12.2011 and opened on or after 1.12.2011 and applied for premature closure on or after 1.12.2011 are enclosed.

3. It is requested that this clarification and interest calculation table may be circulated to all post offices immediately for information and necessary guidance please.

4. This issues with the approval of DDG(FS)

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

SB ORDER @@ A Huge Change

Directorate has issued following SB orders on 24.11.2011. For details please visit: this link.

S B ORDER 22 / 2011, Dated 24.11.2011	Discontinuance of Kisan Vikas Patras with effect from 01.12.2011
S B ORDER 23 / 2011, Dated 24.11.2011	Revision of Maturity Period and Maturity Value  of 6 years National Savings Certificate ( NSC ) VIII Issue with effect from 01.12.2011
S B ORDER 24 / 2011, Dated 24.11.2011	Revision of maximum limit of subscription in a financial year, rate of interest on balance in the PPF Accounts and rate of interest charged on loan taken from PPF Account with effect from 01.12.2011
S B ORDER 25 / 2011, Dated 24.11.2011	Revision of Maturity Period , rate of interest and discontinuation of 5% bonus on maturity of Monthly Income Account scheme with effect from 01.12.2011
S B ORDER 26 / 2011, Dated 24.11.2011	Revision of interest rate on balance at credit in Post Office Savings Account with effect from 01.12.2011
S B ORDER 27 / 2011, Dated 24.11.2011	Revision of rate of interest of Time Deposit Accounts with effect from 01.12.2011
S B ORDER 28 / 2011, Dated 24.11.2011	Revision of rate of interest of Recurring Deposit Accounts with effect from 01.12.2011
S B ORDER 29 / 2011, Dated 24.11.2011	Revision of rate of commission payable to SAS and MPKBY Agents and discontinuance of commission to PPF Agents with effect from 01.12.2011