India Post Clarifies Rules for Re-investment of Maturity Amount in Small Savings Schemes

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The Department of Posts, under the Ministry of Communications, Government of India, has issued SB Order No. 11/2021 providing detailed clarification on the re-investment of maturity proceeds of National (Small) Savings Schemes. The order was issued from Dak Bhawan, New Delhi, and is dated 21 June 2021.



Background

The Department stated that it had been receiving a large number of queries and representations from SAS agents regarding the procedure for re-investing maturity amounts of various small savings schemes into new accounts or certificates. To remove confusion and ensure uniformity across field units, the competent authority has reiterated the existing provisions and laid down a clear, step-by-step procedure.

Key Highlights of the Order

Mandatory Post Office Savings Account

For re-investment of the full or partial maturity value, the depositor must maintain or open a Post Office Savings Account. The maturity amount is first credited to this savings account and then used for opening a new scheme account or purchasing certificates.

Direct Re-investment by Account Holder

  • The depositor must submit the Account Closure Form (SB-7A) along with the passbook or certificate of the matured scheme.

  • A Withdrawal Form (SB-7) or POSB cheque is required for funding the new investment.

  • The depositor must clearly mention instructions such as “Credit maturity value into my Post Office Savings Account” and “For reinvestment in ___ scheme” on the relevant forms.

  • Updated KYC documents, as per GSPR-2018 and prevailing KYC guidelines, are mandatory if not already submitted.

  • Re-investment can be for an amount equal to or less than the maturity value and must be under the same CIF.

Re-investment Through SAS Agents

  • Re-investment through SAS agents continues to be allowed as per existing SAS agency rules.

  • The agent must issue an Authorised Agent Receipt for documents received from the depositor.

  • New investments under SAS rules are permitted through cash (up to ₹20,000) or cheque only.

  • During account opening, the agent code must be selected, and the new account funding will be done by transfer from the depositor’s Post Office Savings Account.

Important Conditions

  • Re-investment is allowed only in the name of the original account holder, one of the joint holders, or a minor under the guardianship of the account holder.

  • The same CIF must be used for the new investment.

Instructions to Field Offices

The Department has directed that this order be circulated to all CBS Post Offices for guidance, information, and strict compliance. The instructions have been issued with the approval of the DDG (Financial Services).

This clarification is expected to streamline re-investment procedures, reduce operational ambiguity, and ensure smoother services for depositors and SAS agents across India Post.

Download Official Order : https://drive.google.com/file/d/14djtEPSDnttRy2Ojz6Iwxez5QMH8tsOc/view?usp=drive_link

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