postal history

8/4/2019 Postal History

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INDIAN POSTAL SCHEME

INDEX

Sr.No. Title

1 Postal History

2 Department Of Posts India Savings Bank3 General Information (All Type Of SB Accounts)

4 The Post Office Saving Bank Offers The FollowingSaving Schemes

5 Time To Time Rate Of Interest

6 National Savings Certificate

7 Kisan Vikas Patra

8 Public Provident Funds

9 Post Office Recurring Deposit Accounts

10 Monthly Income Scheme

11 Time Deposit

12 Saving Account

13 Senior Citizen Scheme

14 Bibilography


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INDIAN POSTAL SCHEME

POSTAL HISTORY

The General Post Office of Mumbai was established in 1794 bythe then appointed Postmaster General for Mumbai Presidency,Mr. Charles Elphinstone. Before that, Mumbai had only anagency Post Office, that the East India Company had broughtinto existence.All despatches of mail were brought in anddelivered out of that agency Post Office.

.


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The East India Company was keen on overcoming the difficultyof establishing contacts with far-flung regions of the countryunder its occupation by establishing postal communicationconnecting the principal towns. Lord Clives Minute of 1766gave the lead. But the first regular Post Office had to wait forSir Warren Hastings, till 1774 when Calcutta GPO wasestablished. An overland route between Chennai and Mumbaiwas inaugurated in the following year but Mumbai GPO tookstill more time.

By the time the Indian Post office was recognised GPO,over half-a-century old, had grown into an impressive hub ofwritten communication

In those days, this GPO was housed in a congerie of smallbuildings near the Apollo Pier. These buildings were lost in afire. Following the fire, the GPO moved in 1869 into thebuilding built for it. In course of time, that building becameinadequate for the GPO, and very early in this century, planswere already afoot for construction of a new building. Mr. John

Begg, Consulting Architect to the Government, was given thetask. He designed the present building, and was in charge ofits construction, which took nine years from 1904. In 1913,GPO moved into this building with 12000 square metres ofwork-space in two floors. This edifice situated in the heart ofcity is a crowning heritage building. It is in Indo-Saracenicstyle with a solid exterior, and well-ventilated and comfortableinteriors. The Department is earnest in conserving the buildingin its original form, in keeping with the heritage status.

Mumbai GPO is now the biggest Post Office in the country andone of the biggest in the world. It caters to over 50,000address sites, most of which are recipients of voluminous mail.

The Business Hall of the GPO is unique with 101 counterpositions, following the addition of the 1200 square metre largeBi-Centenary Hall, and working from 0800 hrs. to 2300 hrswhere all businesses of a post Office are transacted for some

25,000 people everyday. A good number of counters are


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computer-run.

Mumbai GPO combines the glory of a historical tradition and

the virtue of modern technology, and is part of the life-line ofthe city.

DEPARTMENT OF POSTS INDIASAVINGS BANK

Various Saving Schemes which are designed to meet therequirement of every section of the society and giving maximumreturns to the customers compared to Nationalized Banks aswell as Private Sector Banks.

The Post office Saving Bank is now the largest SavingsInstitution in the country with network of about 1,54,000 postoffices since independence.

The Government have been introducing various savingsschemes from time to time to suit the varying requirement ofsociety. The Postal Banking System is now having more savingsschemes than commercial banks. The department is trying its

best to provide better facilities to the depositors and investors.


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THE POST OFFICE SAVING BANK

OFFERS THE FOLLOWING SAVING

SCHEMES

6-Years National Savings Certificate(VII Issue)

Kisan Vikas Patra

15-Year Public Provident Fund Account

5-Year Post Office Recurring Deposit Account

Post Office Monthly income Scheme

Post Office Time Deposit Account

Post Office Saving Account


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Post Office Senior citizen Saving Scheme,2004

TIME TO TIME RATE OF INTEREST

Category 2/9/93To

31/12/9

1/1/99To

14/1/00

15/1/00To

28/2/02

1/3/01To

28/2/02

1/3/02To

28/2/03

1/3/03Onwards

NSC VIII 12% 11.50% 11% 9.50% 9% 8%

KVP 13.43% 12.25% 11.30% 10.03% 9% 8%

PPF 12% 12% 11% 9.50% 9% 8%

RD 12.50% 11.50% 10.50% 9% 8.50% 7.50%MIS 13% 12% 11% 9.50% 9% 8%

1year TD 10.50% 9% 8% 7.50% 7.25% 6.25%

2year TD 11% 10% 9% 8% 7.50% 6.50%

3year TD 12% 11% 10% 9% 8.25% 7.25%

5year TD 12.50% 11.50% 10.50% 9% 8.50% 7.50%

SB 5.50% 4.50% 4.50% 3.50% 3.50% 3.50%


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GENERAL INFORMATION (ALL TYPE

OF SB ACCOINTS)

Interest calculation formula-----

SB-IBB * Rate of interest1200

MIS-Amount of deposit *Rate of interest1200

RD-(payment of maturity value of discounted accountafter maturity) amount to be paid

maturity value * month for which instalment paid = amount60 to be

paid

An account opened on behalf of a minor may be operated by theparent till attaining majority by the minor and after that by the minordepositor himself, by furnishing revised application form by the minorfor its further continuation.


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Minor account can be transferred after obtaining certificate ascertified that the transfer is for benefit of the minor who is alive thisday.

A minor has attended the age of 10 years and who knows thenature of transactions and how to sign can open and operate anaccount himself.

Parents/legal guardian (appointed by court) can opened accounton behalf of minor or purchase cash certificates purchased in thename of minor.

Nomination is not allowed for minors account/cash certificatespurchased in the name of minor.

An illiterate, blinded or otherwise physically handicapped adult

may operate his account through a literate agent nominated by himfor the purpose.

Institutions are not allowed to invest in TD,MIS,NSC,KVP.

Payment on maturity of NSC/KVP/MIS of Rs.20,000 or moreshould be effected by cheque.

In case of transfer of joint accounts to other post office both/allthe depositors must sign the transfer application.

An account can not be transferred after the death of thedepositor or after the account has been ordered to be closed. A single account in the name of an adult may be converted in toa joint account in the name of original depositor and another adult. A

joint account in the name of two/three depositors may be convertedin to a single account/joint accounts on the name of two depositors.

The initial deposit for opening of Saving account shall beaccepted in cash only. This restriction will not apply to account ofother schemes i.e. RD,TD,MIS,NSS,PPF. In case date of maturity falls on Sunday/Holiday the paymentshall be deemed to be due on the business day immediately

preceding the date of maturity.

In case of joint bank account either/any of the depositor orsurvivor can operate the account. Therefore either/anyone depositoror survivor can apply for and secure a duplicate pass book. Non Resident Indian (NRI) are not eligible to open an account ina Post Office Saving Bank provided that if a resident who opened anaccount in any Post Office Saving Bank subsequently becomes NonResident Indian during the currency of maturity period may continue

such account till its maturity on a Non Repatriation basis.


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In case of a death of one of the two joint depositors the accountwill be treated as single account in the name of surviving depositorfrom the date of death of joint holder and the interest will be allowed

accordingly.

NATIONAL SAVINGS CERTIFICATE

Who can purchase :

An adult in his own name or on behalf of a minor, A minor,

A trust,

Two adults jointly,

Hindu Undivided Family.

Where available

Available for purchase at all main and sub Post Offices

Maturity

Period of maturity of a certificate is six Years.

Nomination/Transferability:

Nomination facility is available.

Certificates can be transferred from one post office toany other post office.


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Transfer from one person to another person permissiblein certain conditions.

Denomination/Deposit limits :

Certificates are available in denominations (face value) ofRs. 100, Rs. 500, Rs. 1000, Rs. 5000 & Rs. 10,000.

There is no maximum limit for purchase of the certificates.

Interest/maturity value :

With effect from 1st March, 2003, Maturity value a

certificate of Rs. 100 denomination is Rs. 160.10. Maturity value of a certificate of any otherdenomination shall be at proportionate rate.

Interest accrued on the certificates every year is liableto income tax but deemed to have been reinvested.

Premature encashment :

Premature encashment of the certificate is not permissibleexcept at a discount in the case of death of the holder(s),forfeiture by a pledgee and when ordered by a court of law.

Place of Encashment/discharge on maturity :

Can be encashed/discharged at the post office where it isregistered or any other post office.

Income Tax relief :

Income Tax rebate is available on the amount invested andinterest accruing every year under Section 88 of Income tax

Act, as amended from time to time.

Income tax relief is also available on the interest earned asper limits fixed vide section 80L of Income Tax, asamended from time to time.


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KISAN VIKAS PATRA

Kisan Vikas Patras (KVPs) are available at all Head PostOffices and authorized post offices throughout India. The KVPs

are measured as the most safe investment tool, as it has thebacking of the Government of India. The principal is assured(guaranteed) and it is deemed to be a safe avenue for investingyour money.KVP is suitable for an increase in investment as it accumulatesmoney at a fixed rate, and money doubles at the end of thespecified period. It is for those looking for guaranteed returns.

Who can purchase:

An adult in his own name or on behalf of a minor,

A minor,

A Trust,

Two adults jointly.

Where available

Available for purchase/issue at Post Offices.


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Maturity amount / period :

With effect from 1st March, 2003, invested amount doubles onmaturity after Eight Years and Seven months.

Nomination :


Denomination/Deposit limits

Certificates are available in denominations (face value)of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000 & Rs.50,000.

There is no maximum limit for purchase of the certificates.

Tax Benefits :

No income tax benefit is available under the scheme. Howeverthe deposits are exempt from Tax Deduction at Source (TDS) atthe time of withdrawal.

Premature encashment :

Premature encashment of the certificate is not permissibleexcept at a discount in the case of death of the holder(s),forfeiture by a pledgee and when ordered by a court of law.

Place of Encashment/discharge on maturity :

Can be encashed/discharged at the post office where it isregistered or any other post office


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PUBLIC PROVIDENT FUNDS

Who can open account under the scheme

An individual :o in his own name,

o on behalf of a minor of whom he is a guardian,

o a Hindu Undivided Family.

Where to open an account

at designated post offices throughout the country and

at designated branches of Public Sector Banksthroughout the country.

Maturity period

The account matures for closure after 15 years.

Account can be continued with or without subscriptionsafter maturity for block periods of five years.

Nomination


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Deposit limits

Minimum deposit required is Rs. 500 in a financial year. Maximum deposit limit is Rs. 70,000 in a financial year.

Maximum number of deposits is twelve in a financial year.

Loans

Loans from the amount at credit in PPF account can be takenafter completion of one year from the end of the financial yearof opening of the account and before completion of the 5th year.

The amount of withdrawal cannot exceed 40% of the amountthat stood to credit at the end of fourth year preceding the yearof withdrawal or at the end of preceding year whichever islower.

Withdrawal

Premature withdrawal is permissible every year after completionof 5 years from the end of the year of opening the account.

Transferability

Account can be transferred from one post office toanother post office,

from a bank to another bank; and

from a bank to post office and vice-versa.

Pass Book

Depositor is provided with a pass book with entries of thedeposited amounts, interest credited every year and other

particulars duly stamped by the post Office.

Interest

Interest at the rate, notified by the Central Government fromtime to time, is calculated and credited to the accounts at the

end of each financial year. Present rate of interest is eight percent / per year since: 1st March, 2003.


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Income Tax relief

Income Tax rebate is available on the deposits made,under Section 88 of Income tax Act, as amended from timeto time.

Interest credited every year is tax-free.

POST OFFICE RECURRING DEPOSIT

ACCOUNTSWho can open :

A single adult or two adults jointly,

A guardian on behalf of a minor or a person of unsoundmind; or

A minor who has attained the age of ten year, in his ownname.

Where can be opened :

At any post office.

Maturity

Period of maturity of an account is five years.

Deposits:

Sixty equal monthly deposits shall be made in an account in

multiples of Rs. five subject to a minimum of ten rupees.


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Defaults in deposits :

Accounts with not more than four defaults in deposits canbe regularized within a period of two months on paymentof a default fee.

Account becomes discontinued after more than fourdefaults.

Interest & Repayment on maturity :

On maturity of the accounts opened on or after 1stMarch, 2003, an amount (inclusive of interest) of Rs.728.90 is payable to a subscriber of Rupees: Tendenomination account.

Amount repayable, inclusive of interest, on an account ofany other denomination shall be proportionate to theamount specified above.

Pass Book :

Depositor is provided with a pass book with entries of thedeposited amount and other particulars duly stamped by the

post Office.

Premature closure :

Premature closure of accounts is permissible after expiry ofthree years provided that interest at the rate applicable to postoffice savings account shall be payable on such prematureclosure of account.

Continuation after maturity :

Permissible for a maximum period of five years.


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MONTHLY INCOME SCHEME

Who can open

A single adult or 2-3 adults jointly.

More than one account can be opened subject to

maximum deposit limits.


At any post office.

Maturity

Period of maturity of an account is six years.

Deposits:

Only one deposit shall be made in an account.

Deposit limits

Minimum: rupees one thousand. Maximum: rupees three lakhs in case of single andrupees six lakhs in case of joint account. Deposits in all

accounts taken together shall not exceed Rs. three lakhs in


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single account and Rs. six lakhs in joint account. Thedepositors shares in the balances of joint accounts shall betaken as one half or one third of such balance according as

the account is held by 2 or 3 adults.

Interest

Interest @ 8 per cent/ per annum, payable monthly inrespect of the accounts opened on or after the 1st March,2003.

In addition, bonus equal to ten per cent of the depositedamount is payable at the time of repayment on maturity.

Pass Book :

Depositor is provided with a pass book with entries of thedeposited amount and other particulars duly stamped by the

post Office.

Premature cloasure :

Premature closure facility is available after one year subject tocondition.

Closure of account:

Account shall be closed after expiry of 6 years, bonus equal toten per cent of deposits shall be paid alongwith principleamount.

Income Tax relief :

Income tax relief is available on the interest earned as per limitsfixed vide section 80L of Income Tax, as amended from time totime.


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TIME DEPOSIT

Post office Time deposit scheme is a type of fixed depositaccount offered by Department of post, Government of India atall post office. This saving plan is best for those investors whowant to deposit a lump sum for a fixed period. Investor gets alump sum (principal + interest) at the maturity of the deposit,where rate of interest on investment depend on the term ofdeposit.

Who can open :

A single adult or two adults jointly,

A pensioner to receive/credit his monthly pension, Group Accounts by Provident Fund, SuperannuationFund or Gratuity Fund, Authority controlling funds of theSanchayika.

Public Account by a local authority/body,

Institutional Accounts by the Treasurer of CharitableEndowments for India, Trust Regimental Fund & WelfareFund,


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A cooperative society / cooperative bank or scheduledbank on behalf of its members, clients or employees

Gazetted Officer in his official capacity.

[ Non Resident Indian / HUF can not open the account. ]

Nomination facility:

Nomination facility is available under Post office Time Depositscheme.

Amount Required:

Minimum amount required: Rs.200/-. Maximum Amount : NoLimit

Time/term of investment:

Time Deposits can be made for the periods of 1 year, 2 years, 3years and 5 years.

Interest Rates

Period of depositRate of Interest per

cent/ per annum

1 YEAR 6.25

2 YEARS 6.50

3 YEARS 7.25 5 YEARS 7.50


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SAVING ACCOUNT

Who can open:

A single adult

Two adult jointly

A minor who has attained the age of ten year, in his own name.


At any post office.

Introduction:

For individual account introduction is necessary.

For opening of Public Account written statement showing thesubject and source of income of the fund should be attached.

Deposits:


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Minimum deposit should be Rs.50/- for ordinary and Rs.500/-for cheque account.

Subsequent deposit should not be less than Rs.5/-

The deposit by cheque can be made in the cheque accountwithout the production of pass book.

Withdrawal:

In cheque account withdrawal is not permissible for less thanRs.50/-

The minor who has opened the account directly must attend thePost Office in person to withdraw money.

The limit of withdrawal at branch office is upto 2,000/- only.

SENIOR CITIZEN SCHEME

A new savings scheme called Senior Citizens SavingsScheme has been notified with effect from August 2, 2004. TheScheme is for the benefit of senior citizens and maturity period of thedeposit will be five years, extendable by another three years. Initiallythe scheme will be available through designated post offices throughout the country.

Who can open:

Who has attained the age of 60 years and above by depositingminimum Rs.1000/- or multiple thereof

Who has attained the age of 55 years and has retired under VRSor special VRS subject to condition that-

Account should be opened within 1 month from the date ofreceipt of retirement benefits.

Certificates of VRS from the employer should be producedindicating benefit received and date of receipt of benefit.

A depositor may open the account in individual capacity or

jointly with spouse.


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A depositor may operate more than one Account with thecondition that the deposits in all accounts taken together shall notexceed Rs.15lakhs and also more than one account shall not be

opened in the same Post Office duiring a calendar month. A recent photograph, age proof and PAN (Income tax) isrequired at the time of opening of account.

(NRI are not allowed to open a new account)


At any main or sub Post Office.

Interest

9% per annum interest shall be payable from the date ofdeposit to 31st March/30th September/31st December as thecase may be in the first instance and thereafter interest

shall be payable on 31st March, 30th June, 30th Septemberand 31st December.

If interest is not claimed quarterly on time by a depositorsuch interest will not earn additional interest.

Premature closure :

Account can be closed prematurely at any time after one year

If account is closed before 2 years 1.5% of the depositedamount shall be deducted.

After 2 years 1% of the deposited amount shall bededucted.

No such deduction will be made in case of death ofdepositor before maturity.

Transfer of account:


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Account is transferable from one Post Office to another incase of change of residence, subject to transfer fee.

Nomination facility

Nomination facility is available for single as well as Joint Account

Maturity

Period of maturity of an account is 5 years

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