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Type of Accounts
- An account may be opened by making an application by the following:
- a single adult;
- two adults jointly;
- Joint ‘A’ type, to be operated by all the depositors or the surviving depositors jointly;
- Joint ‘B’ type, to be operated by any of the depositors or the surviving depositors severally;
- a guardian on behalf of a minor;
- a guardian on behalf of a person of unsound mind;
- a minor who has attained the age of ten years, in his own name:
- Only one account can be opened by an individual as a single account
- An account can only be opened if an account under "a guardian on behalf of a minor" does not exist in the name of the minor or vice versa.
Important notes:
- An account opened as a Single Account cannot be subsequently converted into a Joint Account or vice versa.
- The share of an individual in the balance in a joint account shall be in equal proportion. On the death of one of the account holder in a joint account, the surviving account holder shall be treated as the sole owner of the account and he may continue the account in accordance with the provisions of this Scheme provided another single account is not held in his name. In case a single account exists in the name of the surviving holder, the account shall have to be closed.
- A depositor in a single account under a Savings Scheme desirous of opening a joint account under the same Savings Scheme may do so subject to the overall ceiling on the amount of deposit or the number of accounts, applicable to that Savings Scheme.
- A depositor in a Joint Account under a Savings Scheme, desirous of opening a Single Account under the same Savings Scheme, may do so subject to the overall ceiling on the amount of deposit, and the number of accounts, applicable to the Savings Scheme.
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Deposits and Withdrawls
- Minimum Deposit and Subsequent Deposits:
- The account can be opened with a minimum deposit of five hundred rupees (Rs 500/-).
- Subsequent deposits must be of at least ten rupees (Rs 10/-).
- Maximum Deposit:
- There is no maximum limit for deposits in the account.
- Withdrawals:
- Withdrawals of not less than fifty rupees (Rs 50/-) can be made by presenting the passbook along with Form-2, duly filled and signed.
- Withdrawals can also be made via cheque or electronic means, subject to the availability of balance above the minimum prescribed limit.
- No withdrawal is permitted if it would reduce the balance to less than five hundred rupees.
- Minimum Balance Requirement:
- If an account has a balance of less than five hundred rupees before the commencement of this Scheme, the account holder must deposit the difference within one year to bring the balance to at least five hundred rupees.
- Failure to do so will result in a one hundred rupee account maintenance fee being deducted annually. If the balance becomes nil after deduction, the account will be automatically closed.
- Account Maintenance Fee:
- An account maintenance fee of one hundred rupees will be deducted annually if the required deposit is not made within the specified period.
- Deposits and Withdrawals in Whole Rupees:
- All deposits and withdrawals must be made in whole rupees only.
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Interest on deposits in an account
- Interest Calculation:
- Interest is calculated at a rate of four percent per annum.
- Interest is computed on the lowest balance at the credit of the account between the close of the tenth day and the end of the month.
- The interest is credited to the account at the end of each year.
- Maximum Deposit:
- There is no maximum limit for deposits in the account.
- Rounding Off:
- Interest is allowed only on sums of whole rupees.
- Interest is rounded off to the nearest rupee. Amounts of fifty paisa or more are treated as one rupee, while amounts less than fifty paisa are ignored.
- Minimum Balance Requirement for Interest:
- No interest is allowed for any month in which the balance at credit is below five hundred rupees between the tenth and the last day of the month.
- Interest Calculation upon Closure:
- If an account is closed during a year, interest is allowed up to the end of the month preceding the month in which the account is closed.
- Interest Payment upon Death of Account Holder:
- In the event of the death of an account holder, the interest in their account shall be paid only up to the end of the month preceding the month in which the account is closed.
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Confirmation of balance
A pass book or statement of account of the account holder shall be issued by the accounts office. The account holder may confirm balance in his account by presenting his pass book during office hours.
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Issue of cheque book
A cheque book containing ten leaves may be issued to the account holder on an application, free of charge in a year. Subsequent issue of cheque book shall be charged at two rupees per cheque.
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Silent Account
- An account in which a deposit or a withdrawal has not taken place for three complete years, shall be treated as a Silent Account and credit of interest in a Silent Account shall not be treated as a transaction.
- Transaction in a Silent Account shall be allowed only after revival of account. The account can be revived through an application by the account holder and after completion of the due process by the accounts office.
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Final withdrawal on closure
The account may be closed at any time by the account holder by surrendering the pass book, unused or partially used cheque book, if any, etc. to the accounts office, along with the application in Form-2 for closure of the account.
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Application of General Rules
The provisions of the General Rules shall, so far as may be, apply in relation to the matters for which no provision has been made in this Scheme.
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Power to relax
Where the Central Government is satisfied that the operation of any of the provision of this Scheme causes undue hardship to an account holder, it may, by order for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
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Power to relax
Where the Central Government is satisfied that the operation of any of the provision of this Scheme causes undue hardship to an account holder, it may, by order for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
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Power to relax
Where the Central Government is satisfied that the operation of any of the provision of this Scheme causes undue hardship to an account holder, it may, by order for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
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Power to relax
Where the Central Government is satisfied that the operation of any of the provision of this Scheme causes undue hardship to an account holder, it may, by order for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.
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