SB ORDER NO. 15/2008

SB ORDER NO. 15/2008

No.111-14/2001-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 25.7.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Amendment in Rule 7 of Post Office RD Rules 1981 regarding number of defaults permissible in RD accounts opened or to be opened by personnel of Defence Services.

Sir / Madam,

The undersigned is directed to enclose copy of Gazette Notification GSR No. 480(E) dated 26.6.2008 received from Min.of Finance vide its letter no. 2/15/2006-NS-II dated 8.7.2008 on the subject.

2. The matter regarding enhancement of number of permissible defaults in RD accounts opened by personnel of Defence Services was taken up by APS Directorate and the same was referred to Min. of Finance. Now Rule 7 of PORD Rules 1981 has been amended and a special provision has been incorporated to accommodate 7 defaults instead of 4 for the RD accounts opened or to be opened by Defence Personnel in Field Post Offices. This amendment will not be applicable to Civilian Defence Employees and other depositors who have already opened accounts or will open RD accounts in future in civil post offices.

3. It is therefore requested that this may be brought to the notice of all post  offices for information and necessary guidance.

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

Yours faithfully,

(Kawal Jit Singh)

ASP(Savings Bank/Certificates)

SB ORDER NO. 14/2008

No.107-1/07-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 23.6.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Acceptance of business from agents found involved in fraud cases.

Sir / Madam,

The undersigned is directed to say that it has been brought to the notice of this office that when any agent is found involved in a fraud case, the appointing authority either takes time or fails to take suitable action for cancellation of his/her agency and till such decision is taken by the appointing authority, the Post Offices continue to accept further business from that agent.

 2. The Central Vigilance Commission, while reviewing one of such frauds has suggested that such agents should be black listed and no further business should be accepted from them. The suggestion of CVC has been examined in detail and it has been decided that in case involvement of any agent is established in any fraud case, the appointing authority should immediately be asked to cancel his/her agency and all post offices in the Division should be directed not to accept any further business from that agent. In addition to this, his/her name should be displayed in the premises of all Post Offices in the Division clearly stating that Post Office has suspended business with concerned Agent without mentioning his/her involvement in fraud case as it may attract adverse legal action.

3. It is therefore requested that this may be brought to the notice of all post offices for information and necessary guidance.

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

Yours faithfully,

(Raj Kumar)

ADG (Banking Services)

SB ORDER NO. 13/2008

SB ORDER NO. 13/2008

No.113-3/08-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 19.6.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Investment by NRIs and opening of account by Power of Attorney in Small Savings Schemes- a clarification regarding.

Sir / Madam,

The undersigned is directed to say that some circles have asked for clarifications on the above-subjected issues on the ground that there is no specific provision in the rules of some schemes for investment by NRIs and opening of accounts by Power of Attorney.

2. The matter was referred to Min. of Finance which has now informed that where there is no specific provision for any matter in the rules, it need not to be applied. Hence it is now clarified that NRIs cannot invest in any of the Small Savings Schemes and Power of Attorney cannot open any account in any of the Small Savings Schemes.

3. It is therefore requested that this may be brought to the notice of all post offices and all such matters referred to this office may be disposed off accordingly and in future no such matter needs to be referred to this office.

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

Yours faithfully,

(Raj Kumar)

ADG(Banking Services)

SB ORDER NO. 12/2008

SB ORDER NO. 12/2008

No.79-8/2004-FS (Vol-V)

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 13.5.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Amendment in Rule 3 of SCSS Rules and regularization of SCSS accounts opened in contravention of proviso to Rule 3 sub-rule(2) of SCSS Rules i.e restriction on opening of more than one account in a calendar month in same deposit office a clarification regarding regularization of accounts already closed before 24.5.2007.

Sir / Madam,

The undersigned is directed to say that some circles were forwarding representations from the depositors of Sr. Citizen Savings Scheme Accounts regarding regularization and refund of interest deducted if any at the time of closure of their accounts found to have been opened in contravention of Proviso to Rule 3 of sub-rule (2) of SCSS Rules 2004 ( i.e opening of more than one account in same calendar month in same deposit office) before issue of amendment vide notification dated 24.5.2007.

2. The matter was referred to Min. of Finance which has now informed vide its  letter no. 15/3/2006-NS-II dated 29.4.2008 that amendment issued to provision to sub-rule (2) of Rule 3 of SCSS Rules 2004 vide MOF Notification No. GSR 390(E) dated 24.5.2007 issue from file No. 2/8/2004-NS-II is applicable to only those  accounts which were still continuing as on 24.5.2007 and the said relaxation cannot be applied to all those irregular accounts which had already been closed before that date and the depositor had withdrawn his money.

3. It is therefore requested that this may be brought to the notice of all post offices and all such cases already referred to this office may be disposed off accordingly and in future no such case needs to be referred to this office.

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

Yours faithfully,

(Raj Kumar)

SB ORDER NO. 11/2008

SB ORDER NO. 11/2008

No.113-3/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 1.5.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Updating of POSB Manual Vol-I and II and following of rules and procedure regarding.

Sir / Madam,

The undersigned is directed to say that Min. of Finance has taken a very serious view of large number of irregularities being committed in opening of accounts and issue of NSC/KVP by the postal staff and emphasized that strict instructions should be issued to field units for scrupulously following rules and procedure so that investors may not face inconvenience and Government may not face financial loss.

2. It is being informed that POSB Manual Vol-I and Vol-II have been updated up to

31.12.2006. A new book called POSB Manual Vol-III has also been prepared in which all Acts and Rules relating to POSB and SC have been compiled. All these three books are available in the RTI segment of India Post Web-site.

3. It is requested that since printing of these manuals will take some time because of Hindi Translation, which is still under process, one copy of each manual may be downloaded from the web-site and supplied to each post office for day to day  use. One set of latest books of Sh. A.N.Dureja may also be supplied to each post office. As and when any change in rules or procedure is issued, SB orders are issued by this office.

This may also kindly be ensured that these SB orders are kept year-wise in serial order with APM (counter) as well as APM SO group in all HPOs and with SPM in Sub Post Offices so that staff may be aware of latest changes in rules and procedure.

4. Any irregularity in opening of accounts as well as issue of NSC/KVP may be viewed seriously and strict action may be taken against the operative as well as supervisory staff responsible for the same.

5. This may kindly brought to the notice of all post offices.

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

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&SC)

SB ORDER NO. 10/2008

SB ORDER NO. 10/2008

No.113-3/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 21.4.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Reinvestment of matured certificates / deposits through authorized Post Office agents- a clarification regarding.

Sir / Madam,

The undersigned is directed to say that number of queries are being received from Agents and Circles about the reinvestment of matured certificates / deposits through the authorized Post Office Agents and the procedure to be followed in this regard.

2. In this connection it is clarified that the reinvestment of matured certificates / deposits either in the same scheme or in any other schemes through the Post Office authorized Agents is admissible except in case of redeposit made in TD account under Sub Rule (3) of Rule 6 of POTD Rules 1981 in which redeposit is made retrospectively from the date of maturity. The agents are entitled to get commission on such reinvestments.

For this purpose, procedure to be followed is given below:-

(i) The agent will obtain pass book along with account closure form (SB-7A) duly completed and signed by the depositor on both sides or matured certificates duly signed on the back by the investor. The depositor/investor will write on the top of SB-7A or on the top of backside of matured certificate that “ Passbook/ Certificate(s) handed over to Mr./Ms._____________ Agency  no.____________for re-investment of Rs.________ in _______Scheme” under his/her dated signatures. An application for opening a new account (SB-3) or purchase application for the purchase of certificates duly completed and signed will be obtained from the depositor / investor by the agent. The depositor /

investor will write on the application for opening a new account or application for purchase of certificates under his/her dated signature that “ Amount of  Rs.______________ being maturity value of_______________ the matured deposit / certificates is being reinvested through the agent  ………………………………………..(name of agent and C.A. number). The agent will obtain all the documents in the capacity of an agent not as a messenger.

(ii) Since handling of cash is not involved in such cases, the agent will issue a receipt of the documents from the cheque receipt book with suitable remarks and hand it over to the investor as per normal procedure. Particulars of the matured deposit / certificates which is / are to be reinvested will be written in place of cheque number on the receipt. Postmaster will write the amount reinvested and the balance amount returned to the agent on account closure form or on the back

of matured certificate under his dated signature. For making reinvestment in accounts/certificates, amount as per required denomination under the rules gets reinvested and the residual amount gets paid to the investor through agent by crossed cheque only. Cheque should be handed over to the agent under receipt on the account closure form or on the back of matured certificate. No extra amount can be added to the maturity value to be reinvested.

(iii) Normal procedure will be followed for opening of the new account or issue of the certificates. There is no need to issue cheque for the matured amount in case of reinvestment as no cash handling of Rs.20,000/- or more is involved. The balance amount is to be remitted by crossed cheque only as mentioned in para (ii) above.

3. This may kindly brought to the notice of all post offices.

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

Yours faithfully,

(Kawal Jit Singh)

ASP (SB&SC)

S.B. ORDER NO. 9/2008

S.B. ORDER NO. 9/2008

NO. 16-5/2007-SB(AO)

Government of India

Ministry of Communication and IT

Department of Posts

(FS Division)

Dak Bhawan,

Sansad Marg,

New Delhi – 110001.

Dated: 10.04.2008.

To

All Heads of Circles/Regions,

Addl. Director General, APS, New Delhi.

Subject: Non-deduction of income tax at source on the payments of interest under Sr. Citizens Small Savings Scheme, 2004.

Sir/Madam,

The undersigned is directed to say that of late this Directorate is receiving draft audit paras on non deduction of income tax at source on the payments of interest under Sr. Citizens Savings Scheme, 2004. Instructions have already been issued to all Heads of Circles/Regions regarding the procedure to be followed on the above subject vide this office letter No. 79-08/2004-FS (Vol. V) dated 25.05.2007 (SB Order No. 4/2007) and letter No. 79-8/2004-FS (Vol. V) dated 25.10.2007 (SB Order No. 14/2007). Senior Citizens Savings Scheme Rules, 2004 came into effect from August 2004. The deposits made under these rules carry interest at the rate of 9% per annum from the date of deposit payable quarterly. It further envisaged that the applicant while applying for the scheme has to furnish his/her Permanent Account Number or a self declaration to the effect that his/her income from all sources including the interest from the account to be opened did not exceed the exemption limit. Section 194 A of the Income Tax Act, 1962 specified that Tax Deduction at Source is recoverable from the income by way of interest, if the interest exceeds Rs. 5,000/- (Rs. 10,000/- w.e.f. 1.6.2007) in a financial year. Ministry of Finance has clarified in June 2006 that TDS would be applicable from the very first day the SCSS was made operational. The Director General of Audit, P&T has observed that the Postmasters in many Circles did not observe the provisions of the Income Tax Act which led to non deduction of Income Tax at Source on the payments of interest under the Senior Citizens Savings Scheme 2004. The observations of the DGA, P&T received through draft audit paragraphs are ultimately included in the Annual Reports of the Controller & Auditor General of India. Due to these irregularities, the Department may have to bear adverse remarks of the Public Account Committee and other Statutory Institutions. Besides this, considerable times needs to be spent in preparation of Action Taken

Notes, getting them vetted by Audit and submission thereof to the Monitoring Cell of the Ministry of Finance.

Under these circumstances, it is requested that all the Sub and Head Postmasters may be instructed suitably to observe strictly the provisions of Income Tax Act as and where applicable while making payments so as to avoid any further adverse comments in this matter.

This issues with the approval of DDG (FS).

(P. Panneerselvam)

Accounts Officer (FS)

Tel. No. 23036461

SB ORDER NO. 8/2008

SB ORDER NO. 8/2008

No.109-04/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 9.4.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Closure of Savings Bank account and supply of SB-3 along with account closure form to SBCO- revised instructions regarding.

Sir / Madam,

The undersigned is directed to say that it has been brought to the notice of this office that in case of closure of Saving Bank accounts, Revised SB-3 forms are being supplied to SBCO along with account closure form instead of original SB-3 on the pretext of non-availability of the same. In case of some SOs, revised SB-3 forms have been found prepared with forged signatures resulting in detection of fraud cases at a later stage. In this regard, it seems that procedure prescribed in Rule 21(1) of POSB Manual Vol-I (corrected up to 31.12.2006 and available on web-site) for keeping SB-3 forms in guard files with rings in steel almirahs in bundles of 150-200 and further keeping them locked at the end of the day by the Postmaster are not being followed scrupulously which is leading to inconvenience to the depositors and detection of frauds at a very late stage.

2. It is requested that a special drive in all SO/HPOs may be started to check continuity of all type of SB-3s in all POSB schemes and revised SB-3 forms of all those found missing may be obtained. While taking revised SB-3, obtaining of proper introduction of the depositor on the revised SB-3 as prescribed in the rules for opening of account and copy of identity proof of the depositor should be made compulsory.

3. It may also be ensured that in all SO/HPOs, SB-3 froms should be kept in the manner prescribed in Rule 21(1) of POSB Manual Vol-I as mentioned in Para 1 above and in case of any lapse in this regard, responsibility may be fixed.

4. It is further requested that this revised instruction may be brought to the notice of all Post Offices. I/C SBCO will intimate such type of irregularities to the concerned Divisional Head and from the date of receipt of this order, non-supply of copy of identity proof with Revised SB-3 may be treated as CORRUPT PRACTICE and dealt with accordingly.

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

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&SC)

Encl. Copy of rule 21(1) of POSB Manual Vol-I

SB ORDER NO. 7/2008

SB ORDER NO. 7/2008

No.76-1/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 9.4.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Release of 6.0 version of Sanchay Post Software.

Sir / Madam,

The undersigned is directed to say that after Sanchay Post Software Version 5.0, the New Version 6.0 has now been released by SDC Chennai vide Director Foreign Post & Marketing T.N.Circle Chennai D.O. letter No. Tech-2/19/06-07/II-OC dated 17.3.2008. This is an upgraded version of Version 5.0. No other version is released in between 5.0 and 6.0. It is requested that in those post offices where Sanchay Post Version 5.0 CD has been installed, there is no need to purchase  fresh CD of Version 6.0 and the system may be upgraded by using copy of CD of 6.0 version supplied to the circles/regions. In case of only new locations where Sanchay Post Software is to be installed now, CD of Version 6.0 may be purchased from M/S Datanet Syatems Ltd, Bangalore.

2. For other detailed instructions for Upgradation of the software, kindly visit web site www.tamilnadupost.nic.in/sdc/sblan/htm. It is also requested that before Upgradation, DBAnalyzar Software must be used for analyzing the database discrepancies in the present version and these discrepancies have to be cleared so that the same problems do not occur in the new version also.

3. S.D.C Chennai is functioning as a Help Desk providing support through phone calls and e-mails to all the circles. Kindly nominate one circle/regional coordinator for Sanchay Post Software at the level of each region/circle and intimate his/her name, designation, contact number and e-mail Ids to SDC Chennai so that important/critical issues can be easily communicated to all circles/regions regularly without delay.

4. This may kindly brought to the notice of all concerned post offices.

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

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&SC)

SB ORDER NO. 6/2008

SB ORDER NO. 6/2008

No.116-11/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 7.4.2008

To

All Heads of Circles/Regions

Subject:- Mentioning of card numbers issued to RD depositors by MPKBY agents in Schedule of RD Deposits.

Sir / Madam,

The undersigned is directed to say that Member (I&FS) during her visit to one Head Post Office has observed that some of the MPKBY agents are not mentioning card numbers issued to RD depositors in the RD Schedules, which is very serious issue.

2. It is requested that necessary instructions may be issued to all post offices to ensure that card numbers are mentioned in the Schedule of RD deposits before accepting the same.

3. This issues with the approval of Member (I&FS).

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&SC)

SB ORDER NO. 5/2008

SB ORDER NO. 5/2008

No.116-11/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 7.4.2008

To

All Heads of Circles/Regions

Subject:- Security of important documents like Ledger Cards, SB-3, Index to ledger cards, Specimen Signature Books and Purchase applications of NSC/KVP etc. used in POSB/SC operations.

Sir / Madam,

The undersigned is directed to say that Member (I&FS) during her visit to one Head Post Office has observed that important documents like Ledger Cards, SB-3, Index to ledger cards, Specimen Signature Books and Purchase applications of NSC/KVP etc. used in POSB/SC operations are lying in open and unarranged manner which is fraught with great risk. It has been desired by Member (I&FS) that immediate action should be taken for safeguarding and securing these crucial documents in all post offices. For this purpose, readymade steel almirahs of suitable design are available in the market or any other secure filing systems may be considered.

2. It is requested that necessary instructions may be issued to all divisional heads for taking immediate and prompt action in this regard.

3. This issues with the approval of Member (I&FS).

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&SC)

SB ORDER NO. 4/2008

SB ORDER NO. 4/2008

No.113-5/2007-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 14.3.2008

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Amendment to Rule 24(2) of Appendix-I of POSB Manual Vol-I (1988 edition)/ Rule 24(3) of Appendix-I of POSB Manual Vol-I (corrected up to 31.12.2006) regarding withdrawal by SB-7 in cheque account.

Sir / Madam,

The undersigned is directed to say that the competent authority has amended Rule 24(2) of Appendix-I of POSB Manual Vol-I (1988 edition)/Rule 24(3) of Appendix-I of POSB Manual Vol-I (corrected up to 31.12.2006 & available on India Post web site). The text of the present provisions and amended provisions is given below:-

Rule 24(2) of Appendix-I of POSB Manual Vol-I (1988 edition)/ Rule 24(3) of Appendix-I of POSB Manual Vol-I (corrected up to 31.12.2006 & available on India Post web site).

Present provision

If a depositor of a cheque account wants to withdraw by means of an application for withdrawal, the postmaster should carefully examine the same and satisfy himself that the withdrawal is genuine. Withdrawal by means of application for withdrawal may be allowed in special cases.

Amended provision

If a depositor of a cheque account wants to withdraw by means of an application for withdrawal, the postmaster should carefully examine the same and after due satisfaction that the withdrawal is genuine may allow the withdrawal.

2. This may kindly be brought to the notice of all concerned.

3. This issues with the approval of Member (I&FS).

Yours faithfully,

(Kawal Jit Singh)

ASP(SB&CC)