Post Office MIS, SCSS, TD schemes to stop payment of interest in cash from April 1

The postal department said in a circular that with effect from April 1, 2022, post offices will stop paying interest in cash on senior citizens savings scheme, monthly income scheme and fixed deposit accounts. “Interest will be credited only to the post office savings account or bank account of the account holder. In case the account holder is not able to link his/her savings account with Senior Citizens Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts, then the outstanding interest should be paid only by deposit or cheque in the Post Office Savings Account. said.

The postal department said some senior citizen savings scheme, monthly income scheme and fixed deposit account holders have not linked their savings account (post office savings account or bank account) for credit of their monthly/quarterly/annual interest.

“Interest payable in these Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts has been left unpaid in the Miscellaneous Office Account. Further, it has been observed that many term account holders are not aware of the annual interest payment of TD accounts.”

The circular further states, “As a preventive measure to better control the operations of the Post Office Savings Bank, promote digital transactions, prevent money laundering activities and avoid fraud, the Competent Authority has mandated the Post Office Savings Account.” Have decided to link or bank account for depositing interest payment of Citizens Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts.

It is important to note that no interest is payable on the interest withdrawn from Senior Citizen Savings Scheme, Monthly Income Scheme and Term Deposit accounts. But the interest, if deposited in a savings account, will accrue additional interest solicited. interest payment.

Additionally, for the purpose of withdrawal of interest, filling up of multiple withdrawal forms for each Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit account can be avoided. Depositors can also avail the facility of automatic credit of interest amount from their Senior Citizen Savings Scheme, Monthly Income Scheme and Fixed Deposit accounts to Recurring Deposit Accounts through Post Office Savings Account.