1. POST OFFICE[SB/RD/MIS/FD/INSURANCE SCHEMES]

2. DEPARTMENT OF POST ININDIA Established on 1st April 1774 Head office at Sansad marg, New Delhi As of 31 March 2011, the Indian Postal Service had1,54,866 post offices PO is part of the Ministry of Communications andInformation Technology of the Government of India. The apex body of the department is the PostalService Board, consisting of a chair and six members India has been divided into 22 postal circles, eachcircle headed by a chief postmaster general. Eachcircle is divided into regions, headed by a postmastergeneral and comprising field units known as divisions(headed by SSPOs and SPOs). These divisions arefurther divided into subdivisions, headed by ASPs andIPOs 3. Post Offices offer various types ofaccounts Savings Account [SB] Recurring Deposit Account [RD] Monthly Income Account [MIS] Time Deposit Account [TD/FD]Post Offices also offer various saving and taxsaving instruments such as: National Savings Certificate Public Provident Fund Kisan Vikas Patra 4. POSB It is similar to a savings account in a bank POSB are especially suited for those living inrural and semi-rural areas where the reach ofbanks is very limited. The account can be opened at any post officewith a minimum balance of Rs. 20. Maximum ofRs. one lakh for single account holder and Rs.two lakhs for joint account holders can bedeposited There is no lock-in or maturity period. A minimum balance of Rs. 50 in simple accountand Rs. 500 for cheque facility accounts Interest is calculated on monthly balances andcredited annually Income tax relief is available on the amount of 5. PORD It can be opened at any post office Period of maturity of account is 5 years. Sixty equal monthly deposits shall be made in anaccount in multiples of Rs. five subject to aminimum of ten rupees. Premature closure of accounts is permissibleafter expiry of three years. In case of prematureclosure of account, the interest at the rateapplicable to post office savings account shall bepayable 6. POMIS MIS is meant for those investors who want to investa lump sum and earn interest on monthly basis fortheir livelihood. The scheme is, therefore, a boon forretired persons. The account can be opened by a single adult or 2-3adults jointly. Period of maturity of an account is six years. Only one deposit can be made in an account.Minimum deposit limit is Rs 1000. Maximum depositlimit is Rs. 3 lakhs in case of single account and Rs. 6lakhs in case of joint account. Interest @ 8% per annum is payable monthly. Inaddition, bonus equal to 10% of the deposited amountis payable at the time of repayment on maturity. Premature closure facility is available after one yearsubject to condition. Income tax relief is available on the interest earnedas per limits fixed vide section 80L of Income Tax, asamended from time to time. 7. POTD POTD is just like the bank fixed deposit account. These time deposits are meant for those investors whowant to deposit a lump sum for a fixed period. Time deposit account can be opened at any post officewith a minimum deposit of Rs. 200. There is no maximumlimit for the account. The amount can be deposited for 1year, 2year, 3year, and5years. The deposited amount is repayable after expiry ofthe period for which it is made Interest is calculated on quarterly compounding basis, andis payable annually. Rate of interest varies according to theperiod of the deposit and is decided by the CentralGovernment from time to time. Income tax relief is available on the amount of interestunder the provisions of section 80L of Income Tax Act. Premature withdrawals from all types of post office timedeposit accounts are permissible after expiry of 6 monthswith certain conditions. 8. NSC It is a time-tested tax saving instrument thatcombines adequate returns with high safety National Savings Certificate can be purchased by thefollowing: An adult in his own name or on behalf of a minor A minor A trust Two adults jointly Hindu Undivided Family NSC are available in the denominations of Rs. 100,Rs 500, Rs. 1000, Rs. 5000, & Rs. 10,000. There isno maximum limit on the purchase of the certificates. Period of maturity of a certificate is six years.Presently, maturity value of a certificate of Rs. 100denomination is Rs. 160.10 9. Premature encashment of the certificate is notpermissible except at a discount in the case ofdeath of the holder(s), forfeiture by a pledgee andwhen ordered by a court of law. Interest accrued on the certificates every year isliable to income tax but deemed to have beenreinvested. Income tax relief is also available on the interestearned as per limits fixed vide section 80L ofIncome Tax, as amended from time to time. 10. PPF Public Provident is a savings cum tax savinginstrument. It also serves as a retirement planningtool for many of those who do not have any structuredpension plan covering them. PPF can be opened at designated post officesthroughout the country and at designated branches ofPublic Sector Banks throughout the country. The account can be opened by an individual in hisown name, on behalf of a minor of whom he is aguardian, or by a Hindu Undivided Family. Minimum deposit required in a PPF account is Rs.500 in a financial year. Maximum deposit limit is Rs.70,000 in a financial year. Maximum number ofdeposits is twelve in a financial year. The account matures for closure after 15 years. Account can be continued with or withoutsubscriptions after maturity for block periods of fiveyears. Premature withdrawal is permissible every year after 11. Loans from the amount at credit in PPF amountcan be taken after completion of one year fromthe end of the financial year of opening theaccount and before completion of the 5th year. Interest at the rate notified by the CentralGovernment from time to time, is calculated andcredited to the accounts at the end of eachfinancial year. Presently, the rate of interest is 8%per annum. Income Tax rebate is available "on the depositsmade", under Section 88 of Income Tax Act, asamended from time to time. Interest creditedevery year is tax-free. 12. KVP Kisan Vikas Patra (KVP) is a saving instrument thatprovides interest income similar to bonds. Amount invested in KVP doubles on maturity after 8 years& 7 months. KVP can be purchased by the following: An adult in his own name, or on behalf of a minor, A minor, A Trust, Two adults jointly KVP are available in the denominations of Rs 100, Rs 500,Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is nomaximum limit on purchase of KVPs. Premature encashment of the certificate is not permissibleexcept at a discount in the case of death of the holder(s),forfeiture by a pledgee and when ordered by a court of law. No income tax benefit is available under the Kisan VikasPatra scheme 13. PROCEDURES TO OPEN ANACCOUNT To open an account [Savings Bank(SB),Recurring Deposit(RD), Time Deposit(TD),Monthly Income Scheme(MIS) SB3, SB103 (pay-in-slip) and specimen signature slip for SB andTD are required 14. INSURANCE SCHEMESPost office provides Postal life insurance policy[PLI] for any individual. PLI offers Seven types ofplans:Whole Life Assurance (SURAKSHA)Convertible Whole Life Assurance (SUVIDHA) Endowment Assurance (SANTOSH) Anticipated Endowment Assurance(SUMANGAL) Joint Life Assurance (YUGAL SURAKSHA) Scheme for Physically handicapped personsChildren Policy 15. Whole Life Assurance (SURAKSHA) This is a scheme where the assured amount withaccrued bonus is payable to the assignee, nominee orthe legal heir after death of the insurant. Minimum Age at entry is 19 years and the maximumAge at entry is 55 years. The minimum Sum Assured is Rs 20,000 and themaximum Sum Assured is Rs 10 lacs. The policy can be converted into an EndowmentAssurance Policy after completion of one year andbefore 57 years of age of the insurant. Loan facility is available after completion of four yearsand policy can also be surrendered after completionof three years. The policy is not eligible for bonus if surrendered orassigned for loan before completion of 5 years.Proportionate bonus on the reduced sum assured isaccrued if the policy is surrendered or assigned forloan. 16. Convertible Whole Life Assurance(SUVIDHA) Policy can be converted into EndowmentAssurance after five years. Age on the date ofconversion must not exceed 55 years. If option for conversion is not exercised within 6years, the policy will be treated as Whole LifeAssurance. Loan facility is available. The policy can also be surrendered aftercompletion of three years. The policy is noteligible for bonus if surrendered or assigned forloan before completion of 5 years. Proportionatebonus on the reduced sum assured is accrued ifthe policy is surrendered or assigned for loan. 17. Endowment Assurance (SANTOSH) Under this scheme, the proponent is given anassurance to the extent of the Sum Assured andaccrued bonus till he/she attains the pre-determinedage of maturity. In case of unexpected death of the insurant, theassignee, nominee or the legal heir is paid the fullSum Assured together with the accrued bonus. The minimum age at entry is 19 years and themaximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and themaximum Sum Assured is Rs 10 lacs. Loan facility is available and policy can also besurrendered after completion of three years. The policy is not eligible for bonus if surrendered orassigned for loan before completion of 5 years.Proportionate bonus on the reduced sum assured isaccrued if the policy is surrendered or assigned forloan. 18. Anticipated Endowment Assurance(SUMANGAL) It is a Money Back Policy with maximum SumAssured of Rs 5 lacs. Best suited to those who need periodical returns.Survival benefit is paid to the insurant periodically. Two types of policies are available - 15 years termand 20 years term. For the 15 years term policy, the benefits are paidafter 6 years (20%), 9 years (20%), 12 years (20%)and 15 years (40% and the accrued bonus). For the20 years term policy, the benefits are paid after 8years (20%), 12 years (20%), 16 years (20%) and 20years (40% and the accrued bonus). Such payments will not be taken into consideration inthe event of unexpected death of the insurant and thefull sum assured with accrued bonus is payable to theassignee or legal heir. 19. Joint Life Assurance (YUGALSURAKSHA) It is a joint-life Endowment Assurance in whichone of the spouses should be eligible for PLIpolicies. Life insurance coverage is provided to both thespouses to the extent of sum assured withaccrued bonus with only one premium. All otherfeatures are same as an Endowment policy.All the above schemes havecompulsory medical examination. For the non-medicalpolicy of any category (except AEA andJoint Life Assurance for which MedicalExamination is compulsory), the maximum SumAssured is Rs 1 lac. 20. LIMITS OF SUM ASSURED IN POSTAL LIFEINSURANCE: Any person who is eligible to the benefit of PostOffice Life Insurance Fund under Rule 6, mayeffect an insurance-Whole Life Assurance,Endowment Assurance, Convertible WholeAssurance, Anticipated Endowment Assuranceand Yugal Suraksha Policy or all of them on hislife for a sum not less than Rs. 20,000 in eachclass but not more than an aggregate of Rs.Twenty Lac (Rs. 20,00,000/-) The value of policy shall be taken in multiples ofRs. 10,000/- after minimum limit of Rs.20,000/-i.e. Rs. 20,000/-, Rs.30,000/-,Rs. 50,000/- and soon. 21. SCHEME FOR PHYSICALLY HANDICAPPEDPERSONS: The maximum limit of Insurance for PhysicallyHandicapped persons in PLI is the same asothers and he/she can take any one of the plans. Medical examination is compulsory under thisscheme in order to determine the exact natureand extent of their handicap and its bearing onthe life being insured. Depending upon the nature and extent ofhandicap, normal or a slightly higher premium ischarged. 22. CHILDREN POLICY The Department has introduced Children Policy underPLI/RPLI, with effect form 20th Jan 2006. The Scheme is envisaged to provide Insurance coverto the children of PLI/RPLI policy holders. Maximum two children in family will be eligible to takechildren policy. Children between the age of 5 and 20 years areeligible and maximum sum assured is Rs 1 lakh orequivalent to the sum assured of the main policyholder which ever is less. The main policy holder should not have attained theage of 45 years. No premium is required to be paid on the childrenpolicy on the death of the main policy holder and fullsum assured with the accrued bonus shall be paid tothe child after the completion of the term of thechildren policy. On the death of the child/children, full sum assuredwith the accrued bonus shall be payable to the mainpolicy holder. 23. Main policy holder shall be responsible forpayments for the Children Policy. No loan shall be admissible on Children Policy.However, the policy shall have facility for makingit paid up provided the premium are paidcontinuously for 5 years. No Medical examination of the Child is necessary.However, the child should be healthy on the dayof proposal and the risk shall start from the dateof acceptance of proposal. The policy shall attract bonus at the rateapplicable to Endowment Policy. 24. KYC NORMSKYC norms to be followed in case of opening ofnew accounts/purchase of certificates fallingunder different types of accounts or SavingsCertificates. Applicable to all types of Savingsschemes including Certificates excluding Pensionand Workers Wage Accounts. For low risk categories For medium risk categories For high risk categories Special categories of accounts 25. Photograph Identification proof Address proof Attestation of photocopy documents 26. METHODS OF COLLECTING RENT Pre- printed deposit slips Cheques Money order Credit or debit card Cash 27. ATMS The country's first Post Office Savings Bank ATMwas inaugurated at the head post office in TNagar in Chennai by Union finance minister PChidambaram on Thursday, Feb 28,2014. The move is part of the UPA government's ITmodernization project to revamp the 150-year-olddepartment of posts. In his interim budget for 2014-15, Chidambaramannounced Rs 4,909 crore for the modernizationof 1.55 lakh for PO. Four more ATMs are ready for operation inMumbai and Delhi. The department plans toinstall 1,000 ATMs by the end of 2014 and 1,800ATMs in 2015.