Clarification on premature closure of TD accounts - SB ORDER NO. 33/2011

SB ORDER NO. 33/2011

F.No.113-01/2011-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 13.12.2011

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.       

Subject:-                                Issue of clarifications regarding premature closure of TD accounts.

Sir / Madam,

The undersigned is directed to refer to this office SB Order No. 27/2011 dated 24.11.2011 vide which decisions taken by Min. of Finance regarding changes in POTD scheme effective from 1.12.2011 were circulated.

2.             Some circles have asked for clarifications regarding applicability of reduction
in interest rate to be charged on premature closure of TD accounts to the old accounts. It is clarified that:-

(i)            In case of premature closure of 1 Year, 2 Year, 3 Year or 5 Year account which were opened even before 1.12.2011, if the deposit is withdrawan after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable. The rate of interest shall be 3.5% up to the period 30.11.2011 and 4% thereafter.

(ii)           In case of premature closure of 2 Year, 3 Year or 5 Year account which were opened even before 1.12.2011, if the deposit is withdrawan after the expiry of one year from the date of deposit, interest on such deposits shall be                calculated at the rate, which shall be one per cent less than the rate which was applicable at the time of opening of TD account. Interest calculation tables for the TD accounts opened before 1.12.2011 and opened on or after 1.12.2011 and applied for premature closure on or after 1.12.2011 are enclosed.

3.             It is requested that this clarification and interest calculation table may be circulated to all post offices immediately for information and necessary guidance please.

4. This issues with the approval of DDG(FS)

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

Encl:- as above