SB ORDER NO. 24/2010

SB ORDER NO. 24/2010

No.113-3/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 21.12.2010

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Reinvestment of maturity value of one scheme to same or another scheme- a revised procedure regarding.

Sir / Madam,

The undersigned is directed to refer to this office SB Order No.13/2010 dated 26.7.2010 issued on the above noted subject. In the light of subsequent SB Orders issued on AML/CFT norms, procedure of reinvestment has been reviewed and it has been decided to revise the same from 1.1.2011.

The revised procedure is given below:-

Procedure of direct reinvestment

If a customer wants to reinvest the maturity value of one small savings scheme into another scheme or multiple schemes either in full or part thereof, he/she has to attend the post office personally and submit necessary documents for closure of account or discharge of certificates and account opening forms/purchase applications of the intended amount to be re-invested. He / She has to also submit one application in manuscript( in the enclosed format) mentioning the detail of instrument  maturing, total maturity value and detail of amount he/she intends to re-invest in different schemes. Postmaster while accepting application for re-investment and Account Opening forms/Purchase applications will ensure that the customer has attached all required KYC/CDD documents with one of the account opening form or purchase application. If he/she has already provided CDD/KYC documents then he will ensure that reference has been given in the account opening/purchase application forms. The counter PA and supervisor shall verify the particulars mentioned in the account opening/purchase application forms with KYC/CDD documents attached/already supplied and record remarks on each account opening form/purchase application as “KYCD taken/already taken vide Account No./Registration No,……………dated……………… The Supervisor will maintain a Guard File for keeping the applications of re-investment and Serial number will be assigned on each application starting from day one. The Counter PA of computerized post office will click payment by cheque option in account closing/discharge of certificate screen and write words” Reinvestment Sl. No……….”.(Sl. No. of the Re-investment application). Non-computerized post offices will also maintain the same guard file and remarks of re-investment will be recorded in the LOT/Issue/Discharge Journal of the concerned schemes.

Procedure of Reinvestment through agent

In case of redeposit made in TD account under Sub Rule (3) of Rule 6 of POTD Rules 1981 in which redeposit is made retrospectively from the date of maturity, the re-deposit through agent is not admissible. However, the agents are entitled to get commission on re-investments in all small savings schemes except above. For this purpose, procedure to be followed is given below:-

(i) As per latest orders issued on AML/KYC norms, personal presence of the depositor is not necessary and agent has to attest KYC/CDD documents in addition to self attestation of attestation by Gazetted Officer. The agent will produce application for re-investment signed by the customer where the customer will mention name and agency number of the agent to whom matured instrument he/she has handed over and detail of intended amount of re-investment with names of schemes. Signature of the customer on the application will be compared by the counter PA as well as Supervisor/SPM with that on record. In this application the customer will authorize Postmaster to hand over remaining amount and new instruments to the agent. Remaining procedure as mentioned above will be followed in computerized as well as non-computerized post offices.

(iv) Since handling of cash is not involved in such cases, the agent will issue a receipt of the documents from the cheque receipt book with suitable remarks and hand it over to the investor as per normal procedure. Particulars of the matured deposit / certificates which is / are to be reinvested will be written in place of cheque number on the receipt.

(v) As no cash handling is involved in case of re-investment, provision of getting PAN No. or declaration in Form-60 or 61 need not be enforced.

2. This procedure may be followed in all savings schemes except in case of re-investment of Rs. one lac or more in Sr. Citizen Savings Scheme where investment can only be made by crossed cheque. Balance amount if remains below Rs. 20,000/- may be paid by cash to the depositor or agent and if becomes Rs. 20,000/- or above should either paid by cheque in favour of depositor and cheque handed over to agent under receipt or credited into savings account of the depositor if account stands in the same post office. (Contd…….)

3. This order will supersede all previous orders issued on this subject and may kindly brought to the notice of all post offices.

4. This issues with the approval of DDG(FS)

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

Encl:- Format of application for re-investment

Copy to:-

1. DDG(FS)/DDG(VIG)/JS&FA/DDG(PAF/DDG(RB))

2. Director (Tech) O/o Pr. CPMG T..N Circle.

3. Director (FS)/Director (CBS), Dak Bhawan.

4. Director of Audit (P&T), Delhi.

5. All Directors/Dy. Directors of Accounts, Postal

6. Director, Postal Staff College, Ghaziabad.

7. All Directors, Postal Training Centres.

8. Director CEPT, PTC Mysore for uploading the SB Order in

Department’s Web Site.

9. A.D (Tech), SDC Chennai O/o CPMG T.N.Circle, Chennai.

10. AD /Inspection/PF/Vigilance

11. All Accounts Officers ICO(SB)

12. All recognized unions.

13. PS to Member (T)

APPLICATION FOR RE-INVESTMENT OF MATURITY VALUE

To

The Sr. Postmaster / Postmaster / Sub Postmaster,

____________________________Post Office

Sir,

My following accounts /Certificates standing in the books of your post office are going to mature on______________ Detail of the maturing instruments is given below:-

Sl.No.	Account No./Certificate             Registration No.	Scheme	Maturity Value
Total

                                                                       

I want to invest/re-invest Rs. ____________________in to the following scheme(s) as per detail given against each direct/through authorized agent Sh______________________ whose agency No is.____________________.

Sl.No.	Name of Scheme	Amount	Account No./Registration No.(to be filled by post office)
	Total amount invested
	Balance amount (if any)

                                   

It is requested that Passbooks/Certificates of invested amount and balance amount if any may kindly be returned to me/to my agent by cheque/credit into my savings account No._______________________________ standing at your post office.

(The New Account opening form/ Certificate purchase form dully filled along with the relevant documents are attached )

Signature or thumb impression of Depositor(s)

Date:-

Note:- In case of illiterate depositor, thumb impression should be attested by a literate witness whose name and address should be got noted.

For the use of Post Office

Balance amount Rs.____________________________________________________________ paid by cash/ Cheque No _______________ or credited into savings account number ________________________________on ______________

(Signature of PM/APM/SPM)

RECEIPT TO BE GIVEN BY AGENT

Received Cheque for Rs._____________________________.

[Signature of Agent).

Serial No._______________ (to be entered by post office)

Date Stamp of Post Office