SB ORDER 04/2022 | Mandatory use of Savings Account (PO Savings Account or Bank Account) for credit of monthly/quarterly/yearly interest in case of MIS/SCSS/TD accounts.

SB ORDER 04/2022

 Mandatory use of Savings Account (PO Savings Account or Bank Account) for credit of monthly/quarterly/yearly interest in case of MIS/SCSS/TD accounts.

    It has come to notice that some MIS/SCSS/TD accounts holders have not linked their savings account (either PO Savings Account or Bank account) for credit of their monthly/quarterly/yearly interest and Interest due in these MIS/SCSS/TD accounts are left unpaid in sundry office account. Further, it has been observed that many TD account holders are not aware of annual interest payment of TD Accounts. Also, many depositors of MIS/SCSS/TD accounts are not aware that undrawn interest shall not earn any interest.

    MIS/SCSS/TD accounts holders will be able enjoy the following benefits by linking savings account (either PO Savings Account or Bank account) for interest payment.

a) Interest credited in savings account will earn additional interest, if interest is not withdrawn directly from MIS/SCSS/TD Accounts.

b) Depositors can withdraw due interest without visiting the post office and utilise the same through various electronic means.

c) Filling up of multiple withdrawal forms for each MIS/SCSS/TD account can be avoided.

d) Depositors may avail facility of automatic credit of interest amount from their MIS/SCSS/TD accounts through PO Savings Account to RD accounts.

    In order to provide the above benefits to MIS/SCSS/TD accounts holders, to have better control over POSB operations, promotion of digital transactions, prevention of money laundering activities and as a preventive measure to avoid frauds, the competent authority has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of MIS/SCSS/TD Accounts and 

to issue the following guidelines with immediate effect:

DOWNLOAD SB ORDER 04/2022