Post Office Savings Schemes allows investors to open a single account or a joint account. The government has come up with a clarification for investors holding joint accounts in Post Office Savings Schemes. Presently, the Government Savings Promotion General Rules, 2018 has created a mechanism to open, deposit, transfer or withdraw money from the account. However, questions were raised regarding closure of accounts and applying for duplicate passbooks by investors of post office savings schemes, especially as there may be a different mode of holding. The clarification from the government is significant as apart from single account, joint A and joint B type accounts are allowed to be maintained in PO schemes.
The government said about the operation of Joint Joint B type accounts under National Savings Schemes like NSC, SCSS and others. Joint A type account can be opened jointly in the name of not more than three adults, payable to all the holders jointly or to the survivor or survivors, whereas Joint B-type account can be opened jointly in the name of three adults. payable to any account holder or survivor or survivors.
The Department of Economic Affairs, Ministry of Finance has clarified that in case of Joint B type account, all types of operations can be done by any depositor or living depositor. However, in case of non-CBS post office transfer of account or certificate and application for transfer to branch post office, the signatures of all the depositors in the joint account, either in A-type or in B-type, have to be signed.
Account closure, issue of duplicate passbook and transfer of account by joint depositors or survivors in respect of all schemes except Senior Citizens Saving Scheme (SCSS) under National Savings Schemes in case of Joint B type account Is allowed. Therefore, all functions of the account including closure of account, issue of duplicate passbook and transfer of account etc. shall be permitted by joint depositors or survivor in respect of all schemes except senior in case of Joint B type account.
15 lakh can be deposited
In case of SCSS, an individual can open a joint account on his own or with a spouse. The entire amount deposited in the joint account will be payable to the first account holder only. Both the spouses can open single account and joint account with each other with a maximum deposit of Rs 15 lakh in each account, provided both are eligible to open the account individually.
In case of SCSS account, the entire amount of deposit is first attributed to the account holder, in case of Joint B, only quarterly interest withdrawal is allowed by the joint depositors or survivor.
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