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)