As an investor in post workplace savings schemes, you might be holding them as a single account or as a joint account. The government has come out with clarifications for investors holding joint accounts in post workplace savings schemes.
Presently, the Government Savings Promotion General Rules, 2018 has a clearly defined mechanism for account opening, deposit, transfer or withdrawal of funds from an account. However, queries had been raised with regards to the closure of the Account and applying for duplicate passbook by the investors of post workplace savings schemes in particular for the reason that there could be a distinct mode of holding.
The clarification from the government is crucial as in addition to the single holding of account, one is permitted to keep Joint A and Joint B Type Accounts in the PO schemes. The clarification is about the Operation of Joint B Type Accounts below the National Savings Schemes such as NSC, SCSS and other folks.
The Joint A Type Account might be opened jointly in the names of up to 3 adults payable to all the holders jointly or to the survivor or survivors whilst a Joint B-Type Account might be opened jointly in the name of up to 3 adults payable to any of the account holders or to the survivor or survivors.
The Department of Economic Affairs, Ministry of Finance has clarified that all sorts of operations are permitted by any of the depositors or the surviving depositor severally in case of Joint B Type account.
However, in the Application for transfer of account or certificates in case of Non’CBS Post Offices and transfer to Branch Post Offices, the signatures of all the depositors in a Joint Account either A-form or B form, has to be obtained, as there is a want for specimen signatures of all the depositors.
Therefore, all the operations of account which includes closure, situation of duplicate passbook and transfer of account and so forth shall be permitted to be carried out by either of the joint depositors or survivor in case of Joint B Type account in respect of all the schemes except for Senior Citizens’ Saving Scheme (SCSS) below National Savings Schemes.
In the case of SCSS, an person might open an account in an person capacity, or jointly with a spouse. The complete quantity of deposit in a joint account shall be attributable to the initially account holder only. Both the spouses can open a single account and joint accounts with every other with the maximum deposit of up to Rs 15 lakh in every account supplied each are individually eligible to open the account.
In the case of the SCSS Account, considering that the complete quantity of deposit, is attributable to the initially account holder, only withdrawal of quarterly interest is to be permitted to be carried out by either of the joint depositors or survivor in the case of Joint B Type account.
In respect of remaining operations of Joint B Type SCSS Account, either the initially account holder might do all the operations or the signature of the initially account holder is mandatory in all application types of numerous operations of the account.