To avoid confusion, India Post in a circular reiterated the arrangements available for reinvestment of the maturity value of any (small) national savings plan for opening a new account / purchasing certificate either by the account holder directly or through agents.
“This office receives numerous requests / representations from SAS agents concerning the reinvestment of the value at maturity of one of the national savings plans for the opening / purchase of a new account / certificate”, India Post said in a circular.
For reinvestment of the full maturity value or part thereof by the account holder directly or through a SAS agent, the account / certificate holder must either maintain or open a new postal savings account at the post office, India Post said.
In addition, the reinvestment can be made either for an amount equal to or less than the amount and up to the credited maturity value.
Reinvestment can only be made under the same CIF (Client Information File or client identifier) and in the name of the account holder / one of the joint holders / minor under the supervision of the account holder, i.e. on ( s) holder (s) of the matured account will be the sole holder of the account or one of the holders of the joint account or the guardian of the minor / of the alienated person, as the case may be, of the new account opened within the framework of the reinvestment, a said India Post.
Direct Reinvestment procedure, according to India Post
i) If an account holder wishes to reinvest the maturity value of his (small) national savings plan, in whole or in part, he must submit an account closure form (SB-7A) for the account arrived when due, a passbook and withdrawal form (SB-7) or POSB check from their postal savings account at the post office concerned. In addition, he must submit the account opening form (AOF) with the payment slip for the new account to be opened.
ii) If he has not provided his KYC documents in accordance with the provisions available in the GSPR-2018 and the KYC guidelines issued from time to time, he must also submit updated KYC documents with the above documents.
iii) In the receipt part of the account closure form (SB-7A) or on the back of the pre-printed KVP / NSC, the account holder must write “Maturity value of the loan on my postal savings account no … …………… ”and sign.
iv) In the acknowledgment part of the withdrawal form (SB-7) from the postal savings account or on the back of the POSB check, the account holder must write “For reinvestment in the ________ plan instead of the A / c number firm …………. for Rs. ……………… and sign ”.
v) The post office AP counter checks the documents received and, if all documents are in order, follows the procedure prescribed in the rules for closing an existing account and transfers the value at maturity to the Post Savings Account of the owner.
vi) The supervisor verifies the closure of the account.
vii) After the account is closed, the PA meter will open a new account under the account holder / CIF minor and when opening the account, funding the amount mentioned in the withdrawal form (SB-7) or check POSB will be made from the postal savings account of the account holder.
viii) The supervisor must verify the opening of the new account and the financing of the account.
ix) Counter PA will provide the passbook of the new account opened to the account holder.
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