Two major changes has been made in Post office Time Deposit scheme.
First is that in CBS(core banking solution) post office branches ,if a Time deposit due for repayment ,but not withdrawn then it shall be automatically renewed from the date of maturity for a same period for which it was opened initially. Rate of interest as applicable on the date of renewal shall be allowed on renewed time deposit. The new rule shall be applicable only in the branches where core banking platform is installed.
Second Major change is ,Interest payment of time deposit withdrawn prematurely before the expiry of 1 year from date of deposit . On such withdrawn ,no interest is being paid earlier but after this amendment ,if customer withdraw deposit before the expiry of one year from date of deposit ,then post saving bank deposit interest shall be payable.
POST OFFICE TIME DEPOSIT (AMENDMENT) RULES, 2014 - AMENDMENT IN RULE 6
NOTIFICATION NO. GSR 222(E) [F.NO.2/7/2012/NS-II], DATED 13-3-2014
In exercise of the powers conferral by Section 15 of the Government Savings Bank Act, 1873 (5 of 1873), the Central Government hereby makes the following rules further to amend the Post Office Time Deposit Rules, 1981, namely:—
1. (1) These rules may be called the Post Office Time Deposit (Amendment) Rules, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In Post Office Time Deposit Rules, 1981—
(i) in Rule 6, sub-rule (3), after clause (b), the following clause shall be inserted, namely:—
"(c) where a deposit in an account standing at the post office working on Core Banking platform become due for repayment, the account shall be automatically renewed from the date of maturity for the same period for which it was opened initially and the deposit shall be eligible for rate of interest ' applicable on the date of renewal."
in rule 8,—
(a) clause (a) shall be omitted;
(b) for clause (aa), the following clause shall be substituted, namely:—
(aa) Where a deposit in 1-year, 2-year, 3-year or 5-year account is withdrawn prematurely before the expiry of 1 year from date of deposit, interest at the rate applicable to post office savings account from time to time shall be payable to the depositor."