Lok Sabha Question No. 2843 (UNSTARRED), answered on 2016-05-11
Subject: Postal Saving Schemes
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: GANESH SINGH

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY DEPARTMENT OF POSTS

## LOK SABHA UNSTARRED QUESTION NO.2843 TO BE ANSWERED ON 11 TH  MAY, 2016

## POSTAL SAVING SCHEMES

†2843. SHRI GANESH SINGH:

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the details and features of the postal saving schemes/instruments available to fulfil the requirement of different investors;
- (b) the amount deposited therein, scheme-wise along with the deposits during the last three years and the current year; and
- (c) the  steps  taken/proposed  to  be  taken  by  the  Government  to  mobilise  more resources under various postal saving schemes?

## ANSWER

## THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) Madam,  the  details  and  features  of  the  postal  saving  schemes/instruments available to fulfil requirement of different investors are shown in Annexure- I
- (b) The scheme-wise amount deposited during the last three years and the current year is shown in Annexure - II
- (c) Central  and  State  Governments  take  various  measures  from  time  to  time  to promote and popularize small saving schemes through print and electronic media as well  as  by  holding  seminars,  meetings  and  providing  training  to  various  agencies involved  in  mobilizing  deposits  under  these  schemes.    A  website  of  the  National Savings  Institute  under  Government  of  India,  Ministry  of  Finance  has  also  been launched  to  facilitate interface with the  public  through  wider  dissemination  of information  on  small  savings  and  on-line  registration  and  settlement  of  investor's grievances.  The  website's  address  is  'nsiindia.gov.in.'    Department  of  Posts  takes following  steps  on  regular  basis  to  mobilize  investment  under  various  savings schemes:-
- (i) Door to door contact for opening of accounts through field staff by way of handbills, flyers etc. and distributing pamphlets to customers who visit post offices.
- (ii) Organizing  Seminars/Melas/Road  Shows  to  open  savings  accounts, particularly in rural areas.
- (iii)        Each  Post  Office is directed to target unbanked population for opening of Accounts.

## Details and Features of the Postal Saving Schemes/instruments available for investors :

<pre>

|   Sl.No. | Scheme/Instruments                           | Salient features                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|----------|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Post Office Savings Account                  |  Account can be opened by cash only with Rs. 20/- .  Minimum balance to be maintained in a non- cheque facility account is INR 50/- and cheque account Rs. 500/-.  Any amount can be retained as balance.  Interest earned is Tax Free up to INR 10,000/- per year.  Nomination facility is available.  Account can be transferred from one post office to another free of cost.  Account can be opened by an individual only.  Account can be a single or Joint.  Joint account can be opened by two or three adults.  A guardian can open account on behalf of minor and a minor of the age of 10 Years and above can also open and operate account independently.  ATM/Debit Cards can be issued to Savings Account holders (having prescribed minimum balance on the day of issue of card) of CBS Post offices.                                                                                                                                                                                                                                                                                         |
|        2 | 5-Year Post Office Recurring Deposit Account |  Interest rate payable is 4.0%per annum.  Account can be opened by cash or cheque.  Minimum Monthly Installment is Rs.10/- and further any amount in multiples of Rs. 5/-. No maximum limit.  Nomination facility is available.  Account can be transferred from one post office to another Free of cost.  Any number of accounts can be opened in any post office.  Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.  Joint account can be opened by two adults.  Account can be opened by an individual only. Account can be a single or Joint.  A guardian can open account on behalf of minor and a minor of the age of 10 Years and above can also open and operate account independently.  Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.  If subsequent deposit is not made up to the prescribed day, a default fee @5paisa for every 5 |

|    |                                           | 3 rupees is charged for each default.  There is rebate on advance deposit of at least 6 installments.  Single account can be converted into Joint and Vice Versa.  One withdrawal up to 50% of the balance allowed after one year.  From 1.4.2016, interest at the rate of 7.4% per annum is payable.  On maturity, account of monthly installment of Rs. 10/- fetches Rs. 726.97 after 5 years on maturity.  Account can be continued for another 5 years on year to year basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----|-------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3 | Post Office Time Deposit Account          |  Account can be opened for 1/2/3/5 Years period.  Minimum amount to be deposited is Rs. 200/- and further in the multiple of Rs.200/-thereof.  Any amount can be deposited. There is no Maximum limit.  Account can be opened by cash or cheque.  Nomination facility is available.  Account can be transferred from one post office to another, free of cost.  Any number of accounts can be opened in any post office.  Account can be opened by an individual only.  Account can be a single or Joint.  Joint account can be opened by two adults.  A guardian can open account on behalf of minor and a minor of the age of 10 Years and above can also open and operate account independently.  The investment under 5 Years TD qualifies for the benefit of Income Tax rebate under Section 80C of the Income Tax Act, 1961.  Interest in TD Account is payable annually.  From 1.4.2016, interest is payable at the following rates:-  Period Rate 1yr.A/c 7.1% 2yr.A/c 7.2% |
|  4 | Post Office Monthly Income Account Scheme |  Account can be opened by an individual only. Account can be a single or Joint.  Joint account can be opened by two or three adults.  A guardian can open account on behalf of minor and a minor of the age of 10 Years and above can also open and operate account independently.  Account can be opened with Rs.1500/- and further in multiples thereof.  Maximum investment limit is Rs. 4.5 lakhs in single                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

|    |                               | 4 account and Rs. 9 lakhs in joint account.  Account can be opened by cash or cheque.  Nomination facility is available.  Account can be transferred from one post office to another free of cost.  Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.  Maturity period of account is 5 years  Interest can be drawn through auto credit into savings account.  Can be prematurely closed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)  From 1.4.2016, interest rate is 7.8% per annum and payable monthly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  5 | Senior Citizen Savings Scheme |  Account can be opened with minimum of Rs.1000/- and further in multiple thereof.  Maximum limit of investment is Rs. 15 lakh.  An individual of the Age of 60 years or more can open the account.  An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.  Maturity period is 5 years.  A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).  Account can be opened by cash up to Rs.1 lakh and by cheque for above Rs.1 Lakh.  Nomination facility is available.  Account can be transferred from one post office to another.  Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.  Joint account can be opened with spouse only and first depositor in Joint account is the investor.  Interest can be drawn through auto credit into savings account.  Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.  After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format.  TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. and depositor has not given declaration in Form 15G or 15H.  Investment under this scheme qualifies for the benefit |

|    |                                           | 5 of Section 80C of the Income Tax Act, 1961.  From 1.4.2016, interest is 8.6% per annum and payable on quarterly basis on 31st March/30 th June/30th Sept/31st December.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  6 | 15 year Public Provident Fund Account     |  An individual can open account with Rs. 100/- but has to deposit minimum of Rs. 500/-.Maximum limit of deposit is Rs.1, 50,000/- in a financial year.  Joint account cannot be opened.  Account can be opened by cash or cheque.  Deposits can be made in lump-sum or in maxium12 installments.  Nomination facility is available.  The subscriber can open another account(s) in the name of minor(s) but subject to maximum investment limit by adding balance in all accounts.  Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.  Maturity value can be retained without extension and without further deposits also.  Premature closure is not allowed before 15 years. Deposits qualify for deduction from income under Sec. 80C of IT Act.  Interest is completely tax-free.  Partial withdrawal is permissible every year from 7th financial year from the year of opening of account.  Loan facility is available from 3rd financial year from the year of opening of account.  No attachment under court decree order.  From 1.4.2016, interest is 8.1% is admissible. |
|  7 | National Savings Certificate (VIII Issue) |  It can be purchased with minimum of Rs.100/- and in multiple thereof.  No maximum limit.  A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or by a minor.  Deposits qualify for tax rebate under Sec. 80C of IT Act.  The interest accrues annually but deemed to be reinvested under Section 80C of IT Act.  Transfer of certificates from one person to another can be done only once from date of issue to date of maturity.  From 1.4.2016, Rs.100/- shall become Rs.147.61                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|  8 | Kisan Vikas Patra (KVP)                   | after 5 years.  Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.  KVP can be purchased from any Departmental Post office.  Certificate can be prematurely encashed after 2 & 1/2 years from the date of issue.  Can be purchased for Rs.1000/- and in multiple thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|    |                            | 6  From 1.4.2016, Amount invested doubles in 110 months (9 years & 2 months)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  9 | Sukanya Samriddhi Accounts |  A legal Guardian/Natural Guardian can open account in the name of a Girl Child.  A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.  Account can be opened up to an age of 10 years only from the date of birth.  Minimum deposit in a financial year is Rs. 1000/-and Maximum Rs. 1, 50,000/-.  Subsequent deposit can be in the multiple of Rs. 100/-. Deposits can also be made in lump-sum.  No limit on number of deposits either in a month or in a Financial year  If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.  Partial withdrawal maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder's attaining age of 18 years or passing 10th Standard for higher education.  Account can be closed after completion of 21 years from the date of opening.  If account is not closed after maturity, no interest will be payable on the balance amount.  Normal Premature closure will be allowed after completion of 18 years of age on account of marriage of the girl child either before one month of proposed marriage or within 3 months of actual marriage.  From 1.4.2016, interest rate admissible is 8.6% Per Annum |

The details of amount deposited scheme-wise during the last three years and current year.

(RS. IN THOUSANDS)

| Sl. No.   | Schemes                                   | Amount of deposits   | Amount of deposits   | Amount of deposits   | Amount of deposits       |
|-----------|-------------------------------------------|----------------------|----------------------|----------------------|--------------------------|
|           |                                           | 2012-13              | 2013-14              | 2014-15              | 2015-16 (up to Feb. 2016 |
| 01.       | Post Office Saving Bank Account           | 837164580            | 887970839            | 1103122683           | 1497779811               |
| 02.       | 5 year Post office Recurring Deposit      | 358984024            | 386530953            | 418944810            | 403064485                |
| 03.       | Post Office Time Deposit Account          |                      |                      |                      |                          |
|           | 1 Year                                    | 153990472            | 205158211            | 282415726            | 358084772                |
|           | 2 Year                                    | 6429463              | 7023072              | 8549931              | 13008222                 |
|           | 3 Year                                    | 12570595             | 12883707             | 11793756             | 14568307                 |
|           | 5 Year                                    | 18535906             | 21727706             | 28147020             | 38783264                 |
| 04.       | Post Office Monthly Income Account        | 190497796            | 179941239            | 215848355            | 315189642                |
| 05.       | Senior Citizen Savings Scheme             | 19788433             | 19978962             | 30070498             | 103198692                |
| 06.       | 15 Year Public Provident Fund account     | 72223113             | 81353677             | 97568411             | 67719094                 |
| 07.       | National Savings Certificate (VIII Issue) | 191015510            | 169471878            | 168161319            | 98232564                 |
| 08.       | *Kisan Vikas Patra                        | 0                    | 0                    | 26706632             | 216138135                |
| 09.       | Sukanya Samriddhi Accounts                | 0                    | 0                    | 5216926              | 51159162                 |

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