| 1. Who can invest? |
- who has attained the age of 60 years or above on the date of opening of an account
- who has attained the age of 55 years or more but less than 60 and who has retired under VRS or Special voluntary retirement scheme. On the date of opening an account subject to the condition that account is opened within three months of retirement.
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| 2.How to open the account? |
- By making an application in the Form-A alongwith age proof and amount deposit Pay-in-Slip in Form-D.
- A depositor may operate more than one account with the condition that deposits in all such accounts shall not exceed the maximum limit as specified under the rules provided that more than one account shall not be opened in the same post office during a calendar month.
- A depositor may open the account in individual capacity or Jointly with spouse.
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| 3. Where to Invest ? |
Any post office doing savings bank work and nationalized
bank. |
| 4. Mode of Deposit |
- Less than Rs. 1 lakh in cash
- by cheque or demand draft the date of deposit shall be date of encashment of the cheque/demand draft.
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| 5. Limits of Deposits |
There shall be only one deposit in the account in multiple
of one thousand not exceeding rupees fifteen lakh |
| 6. Withdrawals |
Five years from the date of opening of an account
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7. Premature closure of
account
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Depositor may withdraw the deposits and close the
account at any time after the expiry of one year from the
date of the account opening subject to the following
deductions :
- closure of account after one year but less than two years 1½% of the deposits.
- Closure of account on or after two years 1% of the deposits.
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8. Premature closure of
extended account |
Any time after the expiry of one year from the date of
extension of account without deduction |
| 9. Interest Payment |
- The Deposits made in the account shall bear interest at the rate of Nine (9%) percent per annum from the date of deposit.
- Interest shall be payable from the date of deposit to 31st March/30th June/30th September / 31st December
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| 10. Nomination : |
The Depositor may nominate a person at the time of
opening the account or after the opening of account but
before it closure. |
| 11. Income Tax Deductions : |
- Income Tax shall be deducted at source.
- Tax exemption on investment U/S 80(c) of the IT Act.
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