Tuesday, 21 February 2012

A BANK OF COMMON PEOPLE IN INDIA IS THE INDIA POST


          Post offices in India are not merely  working as communication providers (mail service, parcel  service, registration etc.) but also providing  good financial services. With its widespread network ,especially in rural areas and  easy-to-approach and common people oriented financial policies it is becoming more and more attractive to common and rural people and becoming more and more popular than banks  . India has the largest Postal  Network in the World with over 1,55,015 post offices (as on 31-03-2009) of which 1,39,144 (89.76%) are in the rural areas. On an average ,a Post Office serves an area of 21.21 sq.km and a population of 7175 people. With   such a rich presences of post offices and friendly nature of the postal staff  also motivating  common people to look towards post offices rather than banks which generally wear high-fie  look.
       The  salient features of some of the financial services of post offices are dealt below  which made the steps of post offices more attractive to public.
1.Savings Account.
  • Any individual can open an account.
  • Cheque facility available.
  • Minimum amount for SB Account   with cheque facility is Rs.500/- and without cheque facility is Rs.50/- which is very minimal.  \
2.Time deposit Account
·         Any individual (a single adult or two adults jointly) can open an account.
  • 1 Year, 2 Year, 3 Year and 5 Year Time Deposit can be opened.
  •          In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable.
  • ·        In case of premature closure of 2 year, 3 year or 5 year account on or after 01.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate specified for a period of deposit of 1 year, 2 year or 3 years as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules.
  • Rate of interest - 7.7%,7.8%,8.0%,8.3% compounded quarterly for 1,2,3 &5 years TD account respectively.
  • The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
  • INR is minimum Rs200/-
3.Monthly Income Scheme  (MIS) Account.
  • Safe & sure way to get a regular monthly income.
  • Specially suited for retired employees/ Senior Citizens or any one with high sum for investment.
  • Rate of interest 8.2%.
  • Maturity Period - Five Years.
  • No Bonus on Maturity w.e.f. 01.12.2011.
  • Auto credit facility to SB Account.
Type of Account
Minimum limit
Maximum limit
Single
INR 1500/-
INR 4.5 lakhs
Joint
INR 1500/-
INR 9 lakhs
Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account
4.Public Provident Fund Account
  • Ideal investment option for both salaried as well as self employed classes.
  • Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
  •          The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point six per cent (8.6%) per annum.
  • ·        Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
  • Withdrawal permitted from 6th financial year.
  • Free from court attachment.
  • An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
Type of Account
Minimum limit
Maximum limit
Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)
INR. 500/- in a financial year
INR. 1,00,000/- in a financial year
5.Senior Citizen Savings Scheme(SCSS) Account
  •         The account may be opened in individual capacity or jointly with spouse
  •          A new avenue of investment and return for Senior Citizen.
  •          The individual may open one or more account in the multiple of INR.1000/-, subject of account is permitted
  •          In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.
  •        Interest @ 9% per annum from the date of deposit on quarterly basis. Interest can be automatically   credited to savings account provided both the accounts stand in the same post office.
  •      Post Maturity Interest at the rate applicable to Premature closure the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity to a maximum limit of INR.15 lakh.

6.National Savings Certificates (NSC)
NSCVIII ISSUE.
  •         Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.
  • ·        Certificates can be kept as collateral security to get loan from banks.
  •        Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.
NSC IX ISSUE
  • INR. 100/- grows to INR 234.35 after 10 years.
  • Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
7.Mutual funds
 At each designated post office one counter (AMFI qualified personnel) has been earmarked (usually on a non-exclusive basis) to receive the Mutual Fund applications and deal.


         In addition to above banking activities ,it is also working as good Insurance  Corporation. The salient  Insurances policies of the Indian Posts are:
  •  Whole Life Assurance ( GRAMA SURAKSHA)
  • Convertible Whole Life Assurance (GRAMA SUVIDHA)
  • Endowment Assurance ( GRAMA SANTOSH)
  • Anticipated Endowment Assurance  (GRAMA SUMANGAL)
  • GRAM PRIYA
  • Scheme for Physically handicapped persons
        With these all above activities and it's dedicated staff the India Post is growing day by day as a Bank of masses in India 

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