It has been made mandatory to link your National Savings Monthly Income Account (MIS) account with PO savings or bank account. MIS is one of many Post Office Savings Schemes Which give a fixed rate of return and can be opened with a minimum of Rs.1000. From April 01 this year, the government will deposit interest rates on MIS accounts only if they are linked to PO savings or bank accounts. Failure to link both the accounts by March 31, 2022 can lead to credit of interest earned on miscellaneous office.
The idea behind linking MIS accounts with PO savings or bank accounts is to ensure that citizens can generate additional interest income, strengthen the digital drive and combat money laundering.
It was noted that some MIS account holders have not linked their accounts to PO savings or bank accounts for credit of their monthly, quarterly, half-yearly and annual interest – and consequently left the interest payable on this account unpaid Gone and deposited back to miscellaneous office. Many depositors are not aware of this but any interest will be received on the interest drawn. Simply put, if you link your MIS account with a PO savings or bank account then you are eligible to earn additional interest on all the interest that has not been withdrawn from his MIS account.
Not only this, if an MIS account is linked to a PO savings or bank account, depositors can make withdrawals on account of interest without the need to visit the post office, and the proceeds can be used through various electronic means. Among other benefits are – avoidance of filling up of multiple withdrawal forms for each MIS account and depositors can avail the facility of automatic credit of interest amount from their MIS account to RD accounts through PO savings account.
In a statement, the Center said, “As a preventive measure to have better control over POSB operations, to promote digital transactions, to prevent money laundering activities and to avoid frauds, the competent authority has mandated PO Savings Account.” have decided to link or bank account for crediting the interest payment of MIS/SCSS/TD accounts.”
After this, the government has issued several guidelines from March 03, 2022.
It has been decided that CEPT, Chennai will provide to all Circles and CPCs (CBS) a list of active MIS accounts which are not linked to Savings Account (either PO Savings Account or Bank Account). Later, circles will organize a special drive to link savings accounts with MIS accounts for interest payment by issuing a request letter or contacting those account holders.
In case of PO Savings Account linking, an MIS account holder will have to submit Form SB-83 while for linking a bank account, ECS-1 has to be filed. In both the forms, an account holder should submit the passbook to the concerned post office for such endorsement. Necessary remarks should be made on the last page of the passbook with signature and stamp in the MIS passbook.
Further, IPPB has been directed to devise a uniform foolproof system for facilitating its customers to avail interest credit from MIS accounts in their IPPB savings account and inform the department so that the same is communicated to all concerned. Can go
If any MIS account holder fails to link the PO Savings or Bank Account by March 31, 2022, the interest earned by you will be credited to Miscellaneous Office Accounts and the outstanding amount will be paid only through credit to the PO Savings Account or by Will be done. Check. Cash payment of interest from Miscellaneous Office Account will not be allowed with effect from April 01, 2022.
MIS account is a savings scheme which pays interest at the rate of 6.6% per annum, payable monthly. The minimum investment limit is Rs 1,000 and can be increased to a maximum of Rs 4.5 lakh. An individual can jointly opt for MIS. A minor above 10 years can open an account in his own name, however, an account below that age group can be opened by a guardian or parents.
If the MIS is opened jointly, all the joint holders will have an equal share in the investment. Further, for computing an individual’s share in a joint account, each joint holder has an equal share in each joint account.
It is to be noted that in MIS, interest is payable on completion of one month from the date of opening and so on till maturity. Withdrawal of deposits from the account is not permitted before the expiry of 1 year from the date of deposit. Also, if an account is closed after 1 year and before 3 years – an equivalent of 2% will be deducted from the principal amount. However, if an account is closed after 3 years and before 5 years, the deduction is equal to 1% of the principal amount.
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