Clarification received from the competent authority regarding PMI calculation

SB ORDER NO. 31/2011

F.No.113-01/2011-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001, Dated: 02.01.2012

CORRIGENDUM-II

To

All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.
 

Subject:- Clarification regarding calculation of Post Maturity Interest.

Sir / Madam,

The undersigned is directed to refer to this office letter of even number dated 13.12.2011 (SB Order No.31/2011) and Corrigendum issued on 20.12.2011 on the subject. Text mentioned under Point (5) of SB Order No. 31/2011 may be replaced with the following:-

(5) Maximum limit of 2 years fixed for admissibility of Post Maturity Interest has been removed...

Procedure:- Now PMI should be paid at the simple interest rate applicable to savings account from time to time from the date of maturity to date of payment. Limit of maximum of two years has been removed. The rate of interest shall be equal to the rate applicable from the date of maturity to the date of payment at different times. For example, if an account was matured on 26.8.2010 and the depositor attends the post office on 15.01.2012, he will be paid PMI at the rate 3.5% from 01.09.2010 to 30.11.2011 and at the rate 4% from 1.12.2011 to 31.12.2011. This shall be applicable to the existing as well as new investments in all schemes. Calculations’ are to be made manually and recorded in the Register to be maintained in manuscript for future reference till software is amended. All other conditions mentioned in the relevant rules shall remain unchanged.

Note:- For the purpose of payment of interest, any part of the period which is less than one month shall be ignored

This issues with the approval of DDG(FS).

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)