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Business News/ Money / Personal Finance/  What you should do if PPF, NSC accounts become 'inoperative' after maturity
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What you should do if PPF, NSC accounts become 'inoperative' after maturity

Freezing of PPF, NSC, other small saving schemes accounts get matured but not closed after three years of maturity, says latest central government's order

Central government's order in regard to PPF, other small saving schemes aims to make the CBS system robust. (MINT)Premium
Central government's order in regard to PPF, other small saving schemes aims to make the CBS system robust. (MINT)

Public Provident Fund (PPF), Nation al Savings Certificate (NSC), other small saving schemes' accountholders having its account freezed under code 'INOP,' it would mean the account has matured without any extension. As per the latest office order issued by the Department of Post under the Ministry of Communication, freezing of small saving schemes accounts get matured but not closed after three years of maturity. The order has been issued to make the CBS system robust, incremental changes are implemented to ensure that the risk of misappropriation involved in CBS operations is minimized.

The office order also unveiled "Standard Operating Procedure for handling of accounts/certificates marked freeze under reason code "INOP: - Inoperative more than 3 years" to be followed in this regard.

The office order said that if any account holder whose account/certificate is found to be Frozen with freeze code "INOP: - Inoperative more than 3 years" attends any post office with Certificate or Passbook for closure, the account/certificate holder should be requested to submit the following documents:

a) Passbook/Certificate;

b) KYC Documents (Mobile number, PAN card and Aadhaar or address proof as per rule 6 of Government Savings Promotion General Rules-2018);

c) Account Closure Form (SB-7A): - Account holder should also be requested to submit account closure form, passbook and details of PO Savings Account number or Bank account details along with a cancel cheque/copy of passbook for credit of maturity value into his/her savings account. Depositor(s) signature shall be obtained on acquittance portion of account closure form, so account holder(s) need not to visit post office again and maturity value get credited in his/her PO Savings Account or Bank Account.

For account standing in Head Post Office, similar documents shall be obtained from the account holder and follow the procedure prescribed below;

1] After receipt of a case for unfreezing and closure at Head Post Office, designated PA and APM (SB) shall verify the account details of documents received with Finacle. After verification of the genuineness of the case, the account/certificate concerned shall be un-freezed with two Supervisors of HO.

2] After closure of account by counter PA, APM (SB) shall verify closure of account.

3] In Head Post Office, a separate register will be maintained for' REGISTER FOR CLOSURE of account identified as "INOP Inoperative for more than 3 years.

4] After entering closure details in the above register, APM (SB) shall put up a register to Head Postmaster for seen.

5] Thereafter, Passbook, Account closure form, KYC document and cancel cheque/copy of the passbook shall be forwarded to SBCO concerned along with other vouchers.

6] SBCO PA and supervisor while checking vouchers of closed accounts which were identified as INOP-Inoperative for more than 3 years, will check account details with Account Closure Form and copies of KYC documents of Account holder are attached with the voucher. If any shortcoming is noticed, objection should be recorded as per laid down procedure.

7] All Visiting/Inspecting Officers, while visiting/inspecting Head Post Offices, should invariable check the prescribed register “REGISTER FOR CTOSURE OF account identified as "INOP - Inoperative for more than 3 years" and see that procedure prescribed above is followed scrupulously.

8] CEPT shall share fortnightly report with circle CPC (CBS)on details of accounts un-freezed from 0"INOP-lnoperative for more than 3 years" reason code.

9] Circle shall get the report verified within a week with reference to the "REGISTER FOR CLOSURE OF account identified as "INOP-Inoperative for more than 3 years" maintained at the Head Post Office and take appropriate measures in case any discrepancy noticed.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 18 Jan 2023, 11:51 AM IST
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