Now You Can Use Aadhaar-Linked Post Office Savings Account For Govt Subsidies

In its circular dated 11 August 2020, the Department of Posts has said that account holders of post office savings account are eligible to receive direct benefit transfer (DBT) of government subsidies, if eligible.

"In order to facilitate the POSB Account holder to avail DBT benefits in their Post Office Savings Account, the competent authority has decided to incorporate column for Aadhaar Seeding in "Application for Opening of Account /Purchase of Certificate" form for benefits of the depositors and ease of operation," the circular said.

To avail monetary benefits from the government and subsidies such as pension, LPG subsidy etc., it is mandatory to provide your Aadhaar number in your bank account.

The circular comes after the government in April 2020 issued common application forms for investing in post office small savings schemes like Public Provident Fund, National Savings Scheme and others.

Applicants can now use form for 'opening of Account/Purchase of certificate (AOF)' for the opening of account or purchasing certificate or at the time of making the first investment. Along with the application form, a pay-in-slip i.e. form no SB 103 has been introduced to make the payment.

A common form for the closure of account at the time of maturity, SB-7A, has been introduced for the closing of account at the time of maturity.

Where an account has to be prematurely closed, SB-7B form has to be used.

To apply for loan/withdrawal from form SB-7C form has to be used.

Similarly, a common form has been introduced for extending the maturity of recurring deposit, time deposit, PPF and SCSS accounts.