SB ORDER NO. 17 /2007

SB ORDER NO. 17 /2007

No.32-1/2007-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001,Dated: 3.12.2007

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject: - Acceptance of subscription in PPF account by cheque/demand draft- a

                 Clarification regarding.

Sir / Madam,

The undersigned is directed to say that in case of acceptance of subscription in PPF account by cheque/demand draft, as per Rule 152(iii) of POSB Manual Vol-I, the date of tendering cheque/ draft (local) at the post office will be treated as the date of deposit when it is realized and credit of cheque will be given only after the cheque/draft tendered for collection is realized. Also in case of new accounts, the account will be opened only after the cheque/draft has been realized.

2. It has been brought to the notice of this office that in some Head Post Offices the amount of these cheques/drafts is being posted in the ledger by showing the date of clearance as the date of credit. This is resulting in loss to the subscribers of PPF accounts as the interest in PPF is allowed only on the credits given up to 5th of each month.

3. In case of RD scheme, the procedure of taking into account the cheque/draft/ pay order presented for RD deposit has been mentioned in Rule 108 of POSB Manual Vol-I where it has been mentioned that credit for the value of instrument (cheque/draft) should be given in the account on the same day with the remark against the deposit in RD ledger card/Sub office RD ledger and LOT to show that the deposit is by cheque, pay order etc. and the value of the instrument should be shown as remittance to the treasury(bank). However, entry in the passbook will be made only after the cheque/draft is realized.

4. It is clarified that since the date of tendering of cheque/draft (Local) is the date of credit in both RD as well as PPF schemes, the procedure laid down in Rule 108 of POSB Manual Vol-I (except for outstation cheques) adopted for deposit in RD accounts by cheque/draft should also be adopted in case of PPF accounts as well so that subscribers of PPF accounts may not suffer loss of interest. The procedure for deposit through outstation cheques as mentioned in rule 152(iv) of POSB Manual Vol-I will remain unchanged.

5. It is requested that the above clarification may kindly be brought to the notice of all the sub and head post offices for information, guidance and necessary action. This issues with the approval of DDG (FS).

Yours faithfully,

(Kawal Jit Singh)

Assistant Superintendent Posts

(SB&CC)