SB Order 29/2021 PDF download
SB Order no. 29/2021-
Hello postal employees, the Department of Posts issued new SB order for
the year 2021. It is known as SB order no. 29/2021. Before it, a total
of 28 SB order has already been issued by the Postal Directorate. It is
the 29th SB order 2021. Today I am going to share about this SB order 29/2021. Just check the below for full information on SB Order no. 29 2021.
What is SB Order 29/2021
SB Order 29/2021-
It is regarding adjustment of interest through HINTTM menu for
premature closure of PPF account, deceased claim closure of SCSS/SSA
account in CBS post office and payment of excess deposit amount in MIS
in case of death of joint account holder.
Govt. of India
Ministry of Communications
Department of Posts
(FS Division)
Dak Bhawan, New Delhi-110001
Dated: 13.10.2021
To,
All Head of Circles/Regions
Subject:
- Regarding adjustment of interest through HINTTM menu for premature
closure of PPF account, deceased claim closure of SCSS/SSA account in
CBS post offices and payment of excess deposit amount in MIS in case of
death of joint account holder.
Sir/Madam,
This
office is receiving many representations from customers regarding the
delay in settlement of PPF premature closure, settlement of SCSS and SSA
deceased claim closure and refund of excess deposit amount from MIS
account in case of death of joint account holder(s) due to processing of
HINTTM menu through concerned Head Post Office. The issue was examined
and necessary modification has been made in Finacle.
2.
Accordingly, I am directed to say that, henceforth the CBS Post Offices
shall follow the following procedure for premature closure of PPF
accounts, settlement of deceased claim closure in SCSS/SSA and excess
amount refund from MIS account: -
Usage of HINTTM menu
- Any change in HINTTM menu should be done before account closure is attempted; modifying the interest rate in HINTTM after invoking closure will lead to incorrect interest calculation and issues in the verification of closure.
- Changes done in HINTTM should be verified immediately and then the user should proceed for account closure operation.
3. SSA Death Claim Closure: -
As per rule 7(2) of Sukanya Samriddhi Account Scheme, 2019 in case of
death of account holder “the Interest for the period between the date of
death of the account holder and date of closure of the account shall be
paid at the rate applicable on Post Office Savings Account for the
balance held in the account”. Accordingly, the interest rate is to be
configured through the HINTTM menu in Finacle by the concerned CBS post
office in case of SSA death claim closure before the closure of such
account. The following procedure is to be followed by the concerned CBS
post office in Finacle: -
a) Counter PA
- Run menu HINTTM
- Select Function = M – Modify
- Entity Type = A-Accounts
- Entity ID = SSA Account number
- Go
- Interest Table Code = SBRAT
- Start Date = Date of death of account holder+1 (For example in case depositor dies on 03-04-2021, date to be entered as 04-04-2021)
- End Date = 31-12-2099
- Submit
b) - Supervisor
- Run menu HINTTM
- Select Function = V – Verify
- Entity Type = A-Accounts
- Entity ID = SSA Account number
- Go
- Verify the account number and date of the applicable SB Interest rate.
- Submit
Note:
- 1. After configuration of SB Interest rate from the date of death,
counter PA shall follow the procedure for account closure.
2.
During the closure of the account through the HCAAC menu, the option
for the field ‘Apply Interest till Date’ is to be selected as YES in the
CLOSURE tab.
4. SCSS Death Claim Closure: -
As per rule 7(2) of Senior Citizens Savings Scheme, 2019 in case of
death of account holder the “Interest for the period between the date of
death of the account holder and date of closure of the account shall be
paid at the rate applicable on Post Office Savings Account for the
balance held in the account”. Accordingly, the interest rate is to be
configured through the HINTTM menu in Finacle by the concerned CBS post
office in case of SCSS death claim closure before the closure of such
account. The following procedure is to be followed by the concerned CBS
post office in Finacle: -
- a) Counter PA
- Run menu HINTTM
- Select Function = M – Modify
- Entity Type = A-Accounts
- Entity ID = SCSS Account number
- Go
- Interest Table Code = SBRAT
- Start Date = Date of death of account holder+1 (For example in case depositor dies on 03-04-2021, date to be entered as 04-04-2021)
- End Date = 31-12-2099
- Submit
b) - Supervisor
- Run menu HINTTM
- Select Function = V – Verify
- Entity Type = A-Accounts
- Entity ID = SCSS Account number
- Go
- Verify the account number and date of the applicable SB Interest rate.
- Submit
Note:
- 1. After configuration of SB Interest rate from the date of death,
counter PA shall follow the procedure for account closure.
2.
During closure through HCAACTD, the current BOD date is to be entered
as the Closure Value Date. Then, interest till the date of death will be
calculated @ SCSS rate and interest from the next day to date of
closure will be calculated @SB rate.
3. If the
SCSS account has already matured and the date of death falls before
maturity, then there is no provision to change the rate of interest in
HINTTM. In such cases interest is to be recovered (if any) and needs to
be calculated by the concerned post office and and HIARM entry is to be
done by In-charge, SBCO after getting approval from Head
Postmaster/Divisional Head with applicable date as BOD date for Debit
Interest & Credit run indicator.
4. Amount
entered as IAR will get recovered from principal amount during closure.
Trial closure must be done for checking whether ‘Adjusted Amount’ shown
in the Closure result screen is in minus value, before proceeding with
actual closure.
5. Premature Closure of PPF
account: - As per rule 13 of Public Provident Fund Scheme 2019, PPF
account can be prematurely closed after expiry of 5 years from the end
of the year in which the account was opened in the following conditions:
-
(a) treatment of life-threatening disease of
the account holder, his spouse or dependent children or parents, on the
production of supporting documents and medical reports confirming such
disease from treating medical authority;
(b)
higher education of the account holder, or dependent children on the
production of documents and fee bills in confirmation of admission in a
recognized institute of higher education in India or abroad;
(c) on change in residency status of the account holder on production of the copy of Passport and visa or Income tax return
In
case of premature closure of PPF account in above situations the
applicable interest rate on these accounts is “interest in the account
shall be allowed at a rate which shall be lower by one per cent. than
the rate at which interest has been credited in the account from time to
time since the date of opening of the account, or the date of extension
of the account, as the case may be”.
For premature closure of PPF account, the following procedure shall be followed by CBS post offices: -
A). If PPF account is opened or extended in Finacle: - The
concerned CBS post office shall obtain the document prescribed in para 5
above, along with passbook & account premature closure form from
the account holder(s)/guardian, as the case may be.
a) Counter PA
- Run menu HINTTM
- Select Function = M – Modify
- Entity Type = A-Accounts
- Entity ID = PPF Account number
- Go
- Interest Table Code = PFPMC
- Start Date = Date of account opening or date of account extension (i.e.1st April)
- End Date = 31-12-2099
- Submit
b) – Supervisor
- Run menu HINTTM
- Select Function = V – Verify
- Entity Type = A-Accounts
- Entity ID = PPF Account number
- Go
- Verify the account number and date of applicable PFPMC interest code and date.
- Submit
ii) After performing the above steps, closure is to be initiated through HCAAC with closure reason code as PFPMC.
iii)
Document related to premature closure shall be attached with the
account premature closure form and forwarded to SBCO along with other
vouchers.
B). If PPF account was migrated or transfer in from Bank in Finacle: -
i)
The concerned CBS post office shall obtain the document prescribed para
5 above as the, along with passbook & account premature closure
form, from the account holder(s)/guardian, as the case may be.
ii)
In case the account stands in Sub Post Office or Branch Post Office,
the Concerned CBS post office shall verify the PPF account details in
Finacle with the application of premature closure form (in duplicate)
and attached document(s)
iii) Thereafter,
concerned SPM shall forward one copy of the account premature closure
form along with document(s) to concerned HPO for adjustment of interest
for pre-migration/pre-transfer period & Closure of account. One copy
of the Account premature closure form shall be retained in a Guard
File.
iv) After receipt of documents for premature closure form, APM (SB) of HO shall check documents received for premature closure.
v)
If documents are in order, APM (SB) of HPO shall calculate interest to
be adjusted before migration/transfer in period and take approval from
Postmaster of HPO. (It shall be ensured that interest adjustment is to
be done up to the month of migration of account/date of transfer in
(-1)).
vi) In the case of a PPF account is an extended account, interest adjustment is to be done from the date of extension.
vii)
Postmaster of HPO shall approve the interest adjustment and direct
Incharge, SBCO to check the correctness of interest adjustment to be
done and to make interest adjustment entry in respective PPF account
through HIARM menu.
viii) Incharge, SBCO shall check interest calculation and post interest correction entry in the HIARM menu.
ix) Next day this account can be closed at the HO level. APM (SB) of HPO should first transfer the account from SO to HPO.
x) Head Post Office shall follow the below-mentioned procedure in Finacle for premature closure of such accounts: -
a) Counter PA
- Run menu HINTTM
- Select Function = M – Modify
- Entity Type = A-Accounts
- Entity ID = PPF Account number
- Go
- Interest Table Code = PFPMC
- Start Date = Date will be auto-populated (either 1st day of the next month of migration or date of transfer in)
- End Date = 31-12-2099
- Submit
b) – Supervisor
- Run menu HINTTM
- Select Function = V – Verify
- Entity Type = A-Accounts
- Entity ID = PPF Account number
- Go
- Verify the account number and date of applicable PFPMC interest code & date.
- Submit
ii)
After performing the above steps, closure is to be initiated through
HCAAC with closure reason code as PFPMC, and payment mode is either
credit in account holder’s PO savings account or by Cheque.
iii)
Document(s) related to premature closure shall be attached with the
account premature closure form and forwarded to SBCO along with other
vouchers.
iv) If payment is made by Cheque, HPO should send the cheque to the concerned SO duly entered in SO Slip.
v)
On receipt of cheque SPM, will hand over the cheque to the depositor
after taking receipt on the Account Premature Closure Form retained by
SO as mentioned in para B (iii) Above. This Account premature Closure
Form shall be sent to HPO for onward transfer to SBCO. SBCO shall attach
this Account Premature Closure Form with the copy of the Account
Premature Closure Form received from SO/HPO.
6. Closure of MIS account when deposit exceeds limit due to death of joint holder / disclosure by depositors / audit objection: -
In
case an individual has crossed the maximum limit prescribed for MIS
account, the following procedure should be followed by the concerned CBS
post office for adjustment of interest through HINTTM menu.
i. Closure of account as a whole: Interest
rate should be modified as SBRAT using HINTTM as explained below.
Account should be closed using HCAACTD with current BOD date as closure
value date, closure reason code as NORML and ‘Collect Penal Int’ flag as
No.
a) Counter PA
- Run menu HINTTM
- Select Function = M – Modify
- Entity Type = A-Accounts
- Entity ID = MIS Account number
- Go
- Interest Table Code = SBRAT
- Start Date = Date up to which MIS interest is applicable + 1 (For example one of the joint depositors died on 03-04-2021, date to be entered as 04-04-2021)
- End Date = 31-12-2099
- Submit
b) Supervisor
- Run menu HINTTM
- Select Function = V – Verify
- Entity Type = A-Accounts
- Entity ID = MIS Account number
- Go
- Verify the account number and date of the applicable SB Interest rate.
- Submit
ii. Closure of account partially, to the extent of excess deposit:
Interest
rate need not be modified in HINTTM. Closure should be done using
HCAACTD as follows to ensure that SB interest will be applied for the
amount being withdrawn:
- In HCAACTD criteria screen excess deposit amount has to be entered instead of the entire principal amount
- Closure value date should be current BOD date
- Closure reason code should be entered as NORML in Closure Exceptions tab
- After this, Interest Code field gets enabled in Closure Details tab
- SBRAT should be entered in the Interest Code
- Submit
iii.
If the MIS account has already matured and the date of death/excess
deposit falls before maturity, then there is no provision to change the
rate of interest in HINTTM. Interest to be recovered, if any, needs to
be calculated by SOL/SBCO and HIARM entry with applicable date as BOD
date should be done for Debit Interest & Credit run indicator.
Amount entered as IAR will get recovered from principal amount during
closure.
iv. In all the scenarios explained
above, SOL user should check Trial Closure in HCAACTD prior to actual
closure, to ensure that interest calculation happens as expected.
7. It is requested to circulate this amendment to all CBS Post Offices for information, guidance, and necessary action.
8. This issues with the approval of Competent Authority.
Yours Sincerely
(Devendra Sharma)
Assistant Director (SB-II)
