Post Office Savings Account (Amendment) Scheme, 2023: Govt Announces 3 Changes On Post Office Savings Accounts

Post office savings account is one of the small savings schemes which is managed by the Department of Posts under the Ministry of Finance, Department of Economic Affairs. The government has made several changes to post office savings account rules via an e-Gazette notification issued by the Department of Economic Affairs, Ministry of Finance on July 3, 2023. The new changes will fall under Post Office Savings Account (Amendment) Scheme, 2023 amended from Post Office Savings Account Scheme, 2019.

Maximum account holder limit

The government has now increased the number of adults who can hold a joint account from two to a maximum of three. Previously, only two people were able to open a post office savings account jointly under the Post Office Savings Account Scheme of 2019, but under the Post Office Savings Account (Amendment) Scheme of 2023, the maximum joint holders limits have been raised to three.

Withdrawal rules

Account holders can now withdraw a minimum of fifty rupees from their accounts by submitting duly filed Form 3 instead of Form 2 along with their passbook.

Under the old provision of Post Office Savings Account Scheme of 2019, "Withdrawals from the account for not less than fifty rupees may be made by presenting a pass book along with Form-2 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means," according to the NSI portal.

Under the new provision Post Office Savings Account (Amendment) Scheme, 2023, the govt said in a notification that "Withdrawals from the account for not less than fifty rupees may be made by presenting passbook along with application for loan or withdrawal in Form-3 of the Government Savings Promotion General Rules, 2018 duly filled in and signed. Withdrawals from the account may also be made subject to the availability of balance above minimum prescribed limit by way of cheque or electronic means."

Interest on deposits in an account

On the lowest amount in an account between the close of the tenth day and the end of the month, interest at the rate of 4% annually shall be imposed. Such interest is to be calculated and credited to the account at the end of each year.
Under the old provision Post Office Savings Account Scheme of 2019, the govt said that "The interest at the rate of four per cent per annum shall be allowed for a calendar month on the lowest balance at the credit of an account between the close of the tenth day and the end of the month, and such interest shall be calculated and credited in the account at the end of each year."

Under the new provision Post Office Savings Account (Amendment) Scheme, 2023, the govt said in the principal scheme for the words "in the end of the month", the words "till the end of the month" shall be substituted.

If an account is closed during a calendar year, interest will be paid up until the end of the month preceding the month the account is closed down. If an account holder passes away, the interest on his account will only be paid at the end of the month preceding the month in which the account is closed. Any month in which the amount at credit is less than 500 rupees at any point between the tenth and the last day of the month is exempt from requiring that interest be paid on the account.