INDIAN POSTAL SCHEME INDEX

Sr.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Postal History

Title

Department Of Posts India Savings Bank General Information (All Type Of SB Accounts) The Post Office Saving Bank Offers The Following Saving Schemes Time To Time Rate Of Interest National Savings Certificate Kisan Vikas Patra Public Provident Funds Post Office Recurring Deposit Accounts Monthly Income Scheme Time Deposit Saving Account Senior Citizen Scheme Bibilography

INDIAN POSTAL SCHEME

POSTAL HISTORY
The General Post Office of Mumbai was established in 1794 by the then appointed Postmaster General for Mumbai Presidency, Mr. Charles Elphinstone. Before that, Mumbai had only an agency Post Office, that the East India Company had brought into existence.All despatches of mail were brought in and delivered out of that agency Post Office.

The East India Company was keen on overcoming the difficulty of establishing contacts with far-flung regions of the country under its occupation by establishing postal communication connecting the principal towns. Lord Clives Minute of 1766 gave the lead. But the first regular Post Office had to wait for Sir Warren Hastings, till 1774 when Calcutta GPO was established. An overland route between Chennai and Mumbai was inaugurated in the following year but Mumbai GPO took still more time. By the time the Indian Post office was recognised GPO, over half-a-century old, had grown into an impressive hub of written communication In those days, this GPO was housed in a congerie of small buildings near the Apollo Pier. These buildings were lost in a fire. Following the fire, the GPO moved in 1869 into the building built for it. In course of time, that building became inadequate for the GPO, and very early in this century, plans were already afoot for construction of a new building. Mr. John Begg, Consulting Architect to the Government, was given the task. He designed the present building, and was in charge of its construction, which took nine years from 1904. In 1913, GPO moved into this building with 12000 square metres of work-space in two floors. This edifice situated in the heart of city is a crowning heritage building. It is in Indo-Saracenic style with a solid exterior, and well-ventilated and comfortable interiors. The Department is earnest in conserving the building in its original form, in keeping with the heritage status. Mumbai GPO is now the biggest Post Office in the country and one of the biggest in the world. It caters to over 50,000 address sites, most of which are recipients of voluminous mail. The Business Hall of the GPO is unique with 101 counter positions, following the addition of the 1200 square metre large Bi-Centenary Hall, and working from 0800 hrs. to 2300 hrs where all businesses of a post Office are transacted for some 25,000 people everyday. A good number of counters are

computer-run. Mumbai GPO combines the glory of a historical tradition and the virtue of modern technology, and is part of the life-line of the city.

DEPARTMENT OF POSTS INDIA SAVINGS BANK

Various Saving Schemes which are designed to meet the requirement of every section of the society and giving maximum returns to the customers compared to Nationalized Banks as well as Private Sector Banks. The Post office Saving Bank is now the largest Savings Institution in the country with network of about 1,54,000 post offices since independence. The Government have been introducing various savings schemes from time to time to suit the varying requirement of society. The Postal Banking System is now having more savings schemes than commercial banks. The department is trying its best to provide better facilities to the depositors and investors.

THE POST OFFICE SAVING BANK OFFERS THE FOLLOWING SAVING SCHEMES
6-Years National Savings Certificate(VII Issue) Kisan Vikas Patra 15-Year Public Provident Fund Account 5-Year Post Office Recurring Deposit Account Post Office Monthly income Scheme Post Office Time Deposit Account Post Office Saving Account

 Post Office Senior citizen Saving Scheme,2004

TIME TO TIME RATE OF INTEREST

Category

2/9/93 To 31/12/9 12% 13.43% 12% 12.50% 13% 10.50% 11% 12% 12.50% 5.50%

1/1/99 To 14/1/00 11.50% 12.25% 12% 11.50% 12% 9% 10% 11% 11.50% 4.50%

15/1/00 To 28/2/02 11% 11.30% 11% 10.50% 11% 8% 9% 10% 10.50% 4.50%

1/3/01 To 28/2/02 9.50% 10.03% 9.50% 9% 9.50% 7.50% 8% 9% 9% 3.50%

1/3/02 To 28/2/03 9% 9% 9% 8.50% 9% 7.25% 7.50% 8.25% 8.50% 3.50%

1/3/03 Onward s 8% 8% 8% 7.50% 8% 6.25% 6.50% 7.25% 7.50% 3.50%

NSC VIII KVP PPF RD MIS 1year TD 2year TD 3year TD 5year TD SB

GENERAL INFORMATION (ALL TYPE OF SB ACCOINTS)

Interest calculation formula-----

SB-IBB * Rate of interest 1200 MIS-Amount of deposit *Rate of interest 1200 RD-(payment of maturity value of discounted account after maturity) amount to be paid maturity value * month for which instalment paid = amount 60 to be paid An account opened on behalf of a minor may be operated by the parent till attaining majority by the minor and after that by the minor depositor himself, by furnishing revised application form by the minor for its further continuation.

 Minor account can be transferred after obtaining certificate as certified that the transfer is for benefit of the minor who is alive this day. A minor has attended the age of 10 years and who knows the nature of transactions and how to sign can open and operate an account himself. Parents/legal guardian (appointed by court) can opened account on behalf of minor or purchase cash certificates purchased in the name of minor. Nomination is not allowed for minors account/cash certificates purchased in the name of minor. An illiterate, blinded or otherwise physically handicapped adult may operate his account through a literate agent nominated by him for the purpose. Institutions are not allowed to invest in TD,MIS,NSC,KVP. Payment on maturity of NSC/KVP/MIS of Rs.20,000 or more should be effected by cheque. In case of transfer of joint accounts to other post office both/all the depositors must sign the transfer application. An account can not be transferred after the death of the depositor or after the account has been ordered to be closed. A single account in the name of an adult may be converted in to a joint account in the name of original depositor and another adult. A joint account in the name of two/three depositors may be converted in to a single account/joint accounts on the name of two depositors. The initial deposit for opening of Saving account shall be accepted in cash only. This restriction will not apply to account of other schemes i.e. RD,TD,MIS,NSS,PPF. In case date of maturity falls on Sunday/Holiday the payment shall be deemed to be due on the business day immediately preceding the date of maturity. In case of joint bank account either/any of the depositor or survivor can operate the account. Therefore either/anyone depositor or survivor can apply for and secure a duplicate pass book. Non Resident Indian (NRI) are not eligible to open an account in a Post Office Saving Bank provided that if a resident who opened an account in any Post Office Saving Bank subsequently becomes Non Resident Indian during the currency of maturity period may continue such account till its maturity on a Non Repatriation basis.

In case of a death of one of the two joint depositors the account will be treated as single account in the name of surviving depositor from the date of death of joint holder and the interest will be allowed accordingly.

NATIONAL SAVINGS CERTIFICATE

Who can purchase : An adult in his own name or on behalf of a minor, A minor, A trust, Two adults jointly, Hindu Undivided Family. Where available Available for purchase at all main and sub Post Offices Maturity Period of maturity of a certificate is six Years. Nomination/Transferability: Nomination facility is available. Certificates can be transferred from one post office to any other post office.

 Transfer from one person to another person permissible in certain conditions. Denomination/Deposit limits : Certificates are available in denominations (face value) of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 & Rs. 10,000. There is no maximum limit for purchase of the certificates. Interest/maturity value : With effect from 1st March, 2003, Maturity value a certificate of Rs. 100 denomination is Rs. 160.10. Maturity value of a certificate of any other denomination shall be at proportionate rate. Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested. Premature encashment : Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law. Place of Encashment/discharge on maturity : Can be encashed/discharged at the post office where it is registered or any other post office. Income Tax relief : Income Tax rebate is available on the amount invested and interest accruing every year under Section 88 of Income tax Act, as amended from time to time. Income tax relief is also available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

KISAN VIKAS PATRA

Kisan Vikas Patras (KVPs) are available at all Head Post Offices and authorized post offices throughout India. The KVPs are measured as the most safe investment tool, as it has the backing of the Government of India. The principal is assured (guaranteed) and it is deemed to be a safe avenue for investing your money. KVP is suitable for an increase in investment as it accumulates money at a fixed rate, and money doubles at the end of the specified period. It is for those looking for guaranteed returns. Who can purchase: An adult in his own name or on behalf of a minor, A minor, A Trust, Two adults jointly. Where available Available for purchase/issue at Post Offices.

Maturity amount / period : With effect from 1st March, 2003, invested amount doubles on maturity after Eight Years and Seven months. Nomination : Nomination facility is available.

Denomination/Deposit limits Certificates are available in denominations (face value) of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit for purchase of the certificates. Tax Benefits : No income tax benefit is available under the scheme. However the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal. Premature encashment : Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law. Place of Encashment/discharge on maturity : Can be encashed/discharged at the post office where it is registered or any other post office

PUBLIC PROVIDENT FUNDS

Who can open account under the scheme An individual : o in his own name, o on behalf of a minor of whom he is a guardian, o a Hindu Undivided Family. Where to open an account at designated post offices throughout the country and at designated branches of Public Sector Banks throughout the country. Maturity period The account matures for closure after 15 years. Account can be continued with or without subscriptions after maturity for block periods of five years. Nomination

Nomination facility is available. Deposit limits Minimum deposit required is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year. Maximum number of deposits is twelve in a financial year. Loans Loans from the amount at credit in PPF account can be taken after completion of one year from the end of the financial year of opening of the account and before completion of the 5th year. The amount of withdrawal cannot exceed 40% of the amount that stood to credit at the end of fourth year preceding the year of withdrawal or at the end of preceding year whichever is lower. Withdrawal Premature withdrawal is permissible every year after completion of 5 years from the end of the year of opening the account. Transferability Account can be transferred from one post office to another post office, from a bank to another bank; and from a bank to post office and vice-versa. Pass Book Depositor is provided with a pass book with entries of the deposited amounts, interest credited every year and other particulars duly stamped by the post Office. Interest Interest at the rate, notified by the Central Government from time to time, is calculated and credited to the accounts at the end of each financial year. Present rate of interest is eight per cent / per year since: 1st March, 2003.

Income Tax relief Income Tax rebate is available on the deposits made, under Section 88 of Income tax Act, as amended from time to time. Interest credited every year is tax-free.

POST OFFICE RECURRING DEPOSIT ACCOUNTS

Who can open : A single adult or two adults jointly, A guardian on behalf of a minor or a person of unsound mind; or A minor who has attained the age of ten year, in his own name. Where can be opened : At any post office. Maturity Period of maturity of an account is five years. Deposits: Sixty equal monthly deposits shall be made in an account in multiples of Rs. five subject to a minimum of ten rupees.

Defaults in deposits : Accounts with not more than four defaults in deposits can be regularized within a period of two months on payment of a default fee. Account becomes discontinued after more than four defaults. Interest & Repayment on maturity : On maturity of the accounts opened on or after 1st March, 2003, an amount (inclusive of interest) of Rs. 728.90 is payable to a subscriber of Rupees: Ten denomination account. Amount repayable, inclusive of interest, on an account of any other denomination shall be proportionate to the amount specified above. Pass Book : Depositor is provided with a pass book with entries of the deposited amount and other particulars duly stamped by the post Office. Premature closure : Premature closure of accounts is permissible after expiry of three years provided that interest at the rate applicable to post office savings account shall be payable on such premature closure of account. Continuation after maturity : Permissible for a maximum period of five years.

MONTHLY INCOME SCHEME

Who can open A single adult or 2-3 adults jointly. More than one account can be opened subject to maximum deposit limits. Where can be opened : At any post office. Maturity Period of maturity of an account is six years. Deposits: Only one deposit shall be made in an account. Deposit limits

Minimum: rupees one thousand. Maximum: rupees three lakhs in case of single and rupees six lakhs in case of joint account. Deposits in all accounts taken together shall not exceed Rs. three lakhs in

single account and Rs. six lakhs in joint account. The depositors shares in the balances of joint accounts shall be taken as one half or one third of such balance according as the account is held by 2 or 3 adults. Interest Interest @ 8 per cent/ per annum, payable monthly in respect of the accounts opened on or after the 1st March, 2003. In addition, bonus equal to ten per cent of the deposited amount is payable at the time of repayment on maturity. Pass Book : Depositor is provided with a pass book with entries of the deposited amount and other particulars duly stamped by the post Office. Premature cloasure : Premature closure facility is available after one year subject to condition. Closure of account: Account shall be closed after expiry of 6 years, bonus equal to ten per cent of deposits shall be paid alongwith principle amount. Income Tax relief : Income tax relief is available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

TIME DEPOSIT
Post office Time deposit scheme is a type of fixed deposit account offered by Department of post, Government of India at all post office. This saving plan is best for those investors who want to deposit a lump sum for a fixed period. Investor gets a lump sum (principal + interest) at the maturity of the deposit, where rate of interest on investment depend on the term of deposit. Who can open : A single adult or two adults jointly, A pensioner to receive/credit his monthly pension, Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund, Authority controlling funds of the Sanchayika. Public Account by a local authority/body, Institutional Accounts by the Treasurer of Charitable Endowments for India, Trust Regimental Fund & Welfare Fund,

A cooperative society / cooperative bank or scheduled bank on behalf of its members, clients or employees Gazetted Officer in his official capacity. [ Non Resident Indian / HUF can not open the account. ] Nomination facility: Nomination facility is available under Post office Time Deposit scheme. Amount Required: Minimum amount required: Rs.200/-. Maximum Amount : No Limit

Time/term of investment: Time Deposits can be made for the periods of 1 year, 2 years, 3 years and 5 years. Interest Rates Rate of Interest per cent / per annum 6.25 6.50 7.25 7.50

Period of deposit 1 2 3 5 YEAR YEARS YEARS YEARS

SAVING ACCOUNT
Who can open: A single adult Two adult jointly A minor who has attained the age of ten year, in his own name.

Where can be opened : At any post office. Introduction: For individual account introduction is necessary. For opening of Public Account written statement showing the subject and source of income of the fund should be attached. Deposits:

 Minimum deposit should be Rs.50/- for ordinary and Rs.500/for cheque account. Subsequent deposit should not be less than Rs.5/ The deposit by cheque can be made in the cheque account without the production of pass book. Withdrawal: In cheque account withdrawal is not permissible for less than Rs.50/ The minor who has opened the account directly must attend the Post Office in person to withdraw money. The limit of withdrawal at branch office is upto 2,000/- only.

SENIOR CITIZEN SCHEME

A new savings scheme called Senior Citizens Savings Scheme has been notified with effect from August 2, 2004. The Scheme is for the benefit of senior citizens and maturity period of the deposit will be five years, extendable by another three years. Initially the scheme will be available through designated post offices through out the country. Who can open: Who has attained the age of 60 years and above by depositing minimum Rs.1000/- or multiple thereof Who has attained the age of 55 years and has retired under VRS or special VRS subject to condition that Account should be opened within 1 month from the date of receipt of retirement benefits. Certificates of VRS from the employer should be produced indicating benefit received and date of receipt of benefit. A depositor may open the account in individual capacity or jointly with spouse.

 A depositor may operate more than one Account with the condition that the deposits in all accounts taken together shall not exceed Rs.15lakhs and also more than one account shall not be opened in the same Post Office duiring a calendar month. A recent photograph, age proof and PAN (Income tax) is required at the time of opening of account. (NRI are not allowed to open a new account) Where can be opened : At any main or sub Post Office.

Interest
9% per annum interest shall be payable from the date of

deposit to 31st March/30th September/31st December as the case may be in the first instance and thereafter interest shall be payable on 31st March, 30th June, 30th September and 31st December. If interest is not claimed quarterly on time by a depositor such interest will not earn additional interest.

Premature closure : Account can be closed prematurely at any time after one year If account is closed before 2 years 1.5% of the deposited amount shall be deducted. After 2 years 1% of the deposited amount shall be deducted. No such deduction will be made in case of death of depositor before maturity. Transfer of account:

Account is transferable from one Post Office to another in case of change of residence, subject to transfer fee. Nomination facility Nomination facility is available for single as well as Joint Account Maturity Period of maturity of an account is 5 years