Small Saving Scheme: Rules Related to Post Office Savings Accounts Changed, You Must Know

Unclaimed Post Office Accounts Update – If you have invested in post office small savings schemes, then there is important news for you. The Post Office Department has announced that it will freeze all small savings scheme accounts which have not been renewed or closed even after three years from the date of maturity.

Mumbai | If you have invested money in any post office small savings scheme, you need to be alert now. If you have neither closed nor extended your account even after three years of maturity of the savings scheme, then your small savings account may now be frozen. This means that all transactions related to such accounts will be banned. In such a situation, just like banks, account holders will have to submit necessary documents to the concerned department to reactivate their accounts.

According to the Mahaenews report, in the order dated 15th July, it has been mentioned that freezing of accounts will now be a regular process. This process will be conducted twice a year so that such accounts can be identified and the hard-earned money of depositors can be secured. This process will start every year from 1st January and 1st July and will be completed within 15 days.

Why can your post office account be frozen?

If your post office account has been inactive for many years, it can be closed by the post office. The postal department has issued new rules for Small Savings Scheme (SCS) accounts, and if these are not followed, the account can be closed. Now, account holders must close their account within 3 years after the policy matures, otherwise, the post office can freeze such accounts. Freezing means you cannot withdraw money from that scheme. The post office has now started freezing such small savings accounts.

Keep in mind that the new post office rules apply to small savings schemes like PPF, Senior Citizens Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Monthly Income Scheme (MIS), Post Office Time Deposit (TD), and Post Office Recurring Deposit (RD).

What if your post office account is frozen?

If your post office savings account gets frozen, you will not be able to make any transactions through it. This means you cannot deposit or withdraw money from such accounts. Also, standing orders and online services will be stopped.

How to unfreeze your post office savings account?

If your account has been frozen, you will have to reactivate it, for which you will need to submit the necessary documents to the concerned department. The account holder can visit any post office and submit KYC documents (mobile number, PAN card, and Aadhaar card or proof of address) along with the passbook or certificate of the frozen account.

The account holder will also have to submit the account closure form, passbook, and details of the post office savings account or bank account. A cancelled cheque or copy of the passbook must also be provided so that the maturity amount can be credited to their savings account. The department will first verify the depositor’s information and, after confirming the identity and matching the signature, the account will be unfrozen.

If everything is found correct, the account will be unfrozen. The maturity amount will be deposited into the account holder’s post office savings account or bank account. This amount will be deposited through ECS (Electronic Clearing Service).