Opening of Zero Balance Accounts by beneficiaries of any Government Welfare Scheme and reduction in account maintenance fee on PO Savings Account – SB Order No. 08/2021

Opening of Zero Balance Accounts by beneficiaries of any Government Welfare Scheme and reduction in account maintenance fee on PO Savings Account – SB Order No. 08/2021

SB Order No. 08 / 2021

F.No. 113-03/2017-SB(Pt-I)
Govt. of India
Ministry of Communications
Department of Posts
(FS Division)

Dak Bhawan, New Delhi-110001
Dated: 30.04.2021

To,

All Heads of Circles / Regions

Subject: – Introduction of “Basic Savings Accounts” under Post Office Savings Account Scheme 2019 to facilitate opening of Zero Balance Accounts by beneficiaries of any Government Welfare Scheme and reduction in account maintenance fee on PO Savings Account- regarding.

***

Madam / Sir,

The undersigned is directed to say that Ministry of Finance (DEA) vide its O.M. No. 14/10/2021-NS dated 13.04.2021 duly appended notification No. G.S.R. 257(E) dated 09.04.2021 has incorporated another category of PO Savings Account called “Basic Savings Account” under new inserted paragraph 3 of Post Office Savings Account Scheme 2019 and reduction in Account Maintenance Fee on PO Savings Account. Copy of notification is attached.

2. Account Maintenance Fee prescribed in rule 4(6) of Post Office Savings Account Scheme 2019 has been revised from Rs. 100 (One hundred rupees) to Rs. 50 (Fifty) inclusive of GST. Account Maintenance Fee will not be applicable on Basic Savings Account.

3. Basic Savings Account has been restored through aforesaid gazette notification. The procedure to be followed for opening and operating these accounts is given below: –

i) A registered adult member of any Government Welfare Scheme can open Basic Savings Account at any Post Office including GDS Branch Post Offices.

Read also |  Reinvestment of maturity value of National (Small) Savings Scheme in the same or in other National (Small) Savings Schemes - Procedure for reinvestment by account holder and through SAS agent - SB Order No. 11/2021

ii) A guardian of a minor whose name is registered for any Government Welfare Scheme can also open Basic Savings Account on behalf of minor.

iii) Only one Basic Savings Account can be opened by the beneficiary and guardian of beneficiary.

iv) Any Government benefit and any other deposit can be made in these accounts.

v) Basic Savings Account will be governed by Post Office Savings Account Scheme 2019 & Government Savings Promotion General Rules,2018.

vi) Only a single account can be opened under Basic Savings Account.

vii) The depositor who desires to open Basic Savings Account under this category has to provide copy of letter/card issued by a competent authority of any State or Central Government Department mentioning name of beneficiary under any welfare scheme, copy of letter/ Aadhaar card issued by UIDAI, Account Opening Form & KYC form.

viii) The postmaster concerned will compare copy of this document with the original under his/her dated signatures.

ix) While opening Basic Savings Accounts, scheme code and registration/enrolment/reference number of the beneficiary contained in letter/card issued by competent authority of any State of Central Government or letter/card number and date should be entered in the field provided for entering Job Card No. in Finacle/Sanchay Post and Aadhaar no. of the beneficiary.

x) All other formalities applicable to PO Savings Account i.e. Specimen Signature, issue of PR in GDS Branch Post Offices, issue of passbook etc. should be followed.

xi) Interest will be calculated and credited in Basic Savings Accounts by following the normal procedure laid down for PO Savings Account.

Read also |  Pensioners may avail Doorstep DLC through IPPB - Know how to avail the facility

xii) All existing Basic Savings Account will also be incorporated and treated as Basic Savings Account.

xiii) Other facilities like Cheque Book, ATM Card, eBanking, mBanking may be availed by Basic Savings Account holders, subject to fulfillment of eligibility conditions for these services. For the purpose minimum balance of Rs. 500 is to be maintained by account holder and Basic Savings Accounts may be converted in to PO Savings Account.

4. Where circle received proposal from State Government for bulk account opening under any Governments Welfare Scheme, Circle may proceed for bulk account opening after taking list of beneficiaries, AOF, KYC form, Aadhaar from respective State Government/Beneficieries.

5. This is issued with the approval of DDG (FS).

Encl: As above

Your’s Faithfully,

(Devendra Sharma)
Asst. Director (SB-II)

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 9th April, 2021

G.S.R. 257(E).—In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme to amend the Post Office Savings Account Scheme, 2019, namely:-

1. Short title and commencement.- (1) This  Scheme  may  be  called  the  Post  Office  Savings Account (Amendment) Scheme, 2021.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Post Office Savings Account Scheme, 2019,-

(i) in paragraph 3, after sub-paragraph (2), the following sub-paragraphs shall be inserted, namely:-

Read also |  Deduction/Non-deduction of TDS in SCSS accounts in CBS post offices - Deptt. of Posts order dated 15.09.2021

“(3) Notwithstanding anything contained in sub-paragraphs (1) and (2), the beneficiaries of this Scheme may open and operate Basic Savings Account and the particulars required for opening of such an account are specified in the Table below, namely :-

TABLE

Type of AccountWho may open the accountDeposit required for opening of accountNumber of accounts that      can be openedType             of

deposits that can be made into             the

account

Minimum balance                     to be maintained in             the

account

Who may operate the account
(1)(2)(3)(4)(5)(6)(7)
Basic Savings Account.(i) Registered adult member of any Government Welfare Scheme;

(ii)      Guardian of a minor whose name is registered for any Government Benefit.

Nil.One.Any Government benefit or any other           deposit under          the scheme.Nil.(i)       An  individual adult whose name is registered  for any Government Welfare Scheme;

(ii)      guardian   of any          minor whose   name is     registered under          any Government Welfare Scheme.

(4) Any Basic Savings Account opened/under the Post Office Savings Account Rules,1981 shall remain operational.”;

(ii) in paragraph 4, in sub-paragraph (6), for the words “one hundred rupees”, the words and brackets “fifty rupees (inclusive of Goods and Services Tax)” shall be substituted.

[F. No. 14/8/2019-NS (Pt.I)]
RAJAT KUMAR MISHRA, Addl. Secy.

Note : The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide number G. S. R. 921 (E), dated the 12th December, 2019.

 

Click here  to view/download the PDF

COMMENTS