Welcome To Savings Bank in PO

TYPES OF SAVINGS SCHEMES Saving Account (SB) Recurring Deposit (RD) Time Deposits ( 1/2/3/5 – TD) Monthly Income Scheme ( MIS) Public Provident Fund ( PPF) Senior citizen savings scheme ( SCSS) National Savings certificates ( NSC)

Small savings schemes Savings Accounts:-- Deposits and withdrawals permitted every day Rate of interest :-3.5% up to 30-11-11 With effect from 01-12-2011 rate of interest is 4% per annum. Minimum Rs. 50/- Maximum Single A/C:- Joint A/C:- NO LIMIT

Recurring Deposit:--- Monthly deposit of fixed Amount for 5 years Min. of Rs. 10 and multiples of Rs.5/- Maturity Value for Dn Rs 10/- for accounts opened on or after 01.12.2011 is Rs 738.62 8.4% interest w.e.f 01.04.12 Maximum limit :-No limit. Pre Matured Closure is allowed after completion of 3 years

Time Deposit:----- 1/2/3/5 yr accounts Only one deposit in an account Minimum amount of deposit Rs.200/- or in multiples of Rs. 200/- Maximum limit :-No limit. Joint account is permissible Pre Matured Closure is allowed. Interest is compounded quarterly and paid annually

TD rate of interest 1 Year 7.7 8.2 2 Years 7.8 8.3 3 Years 8.0 8.4 Period of Deposit Rate of interest (Quarterly compounded) w.e.f 01.12.2011 w.e.f 01.04.2012 1 Year 7.7 8.2 2 Years 7.8 8.3 3 Years 8.0 8.4 5 Years 8.5

MIS accounts Period of the account -5 years Rate of interest will be 8.2% per annum w.e.f 01.12.11, 8.5% w.e.f 01.04.12 Minimum Deposit amount is Rs.1500/-or multiples of Rs. 1500/- Maximum.:-Single A/C-4.5 lacs. Joint A/C—9.00 lacs. No Bonus for MIS accounts. Interest will be paid on the date of opening Pre Matured Closure is allowed

PPF accounts opened with effect from 01-12-2011 Minimum amount of deposit is Rs.500/- in a financial year and in multiples of Rs.5/- Maximum limit of subscription in a financial year shall be Rs 100000 Rate of interest wef 01-12-2011 will be 8.6% per annum , 8.8% w.e.f 01.04.12 Period of account :-15 Years from the end of the year in which account is opened. PPF accounts can be continued after maturity

Senior Citizen Savings scheme : Opened by an adult age of 60 years and above. Minimum Deposit is Rs.1000/- and in multiples of Rs.1000/- Maximum Deposit :-------Rs.15 Lacs. Rate of Interest:----9% up to 31.03.12 Rate of interest 9.3% w.e.f 01.04.12 Interest will be payable quarterly basis.

Change of interest rates Schemes Prior to 1.12.2011 w.e.f 1.12.2011 w.e.f 1.4.2012 SB 3.50 4.0 RD 7.50 8.0 8.4 MIS 8.00 8.2 8.5 SCSS 9.00 9.0 9.3 1 year TD 6.25 7.7 2 year TD 6.50 7.8 8.3 3 year TD 7.25 5 year TD PPF 8.6 8.8 5-NSC 10- NSC - 8.7 8.9

Exercise 1.1 to 1.3

Savings schemes available at BOs Saving Account (SB) Below poverty line (BPL) account Recurring Deposit (RD) Time Deposits ( 1/2/3/5 – TD)

Process flow Opening of account Subsequent deposits Withdrawals Closure Transfer Misc (issue of duplicate pass book)

Forms SB-3 card ( Application) SB-103 ( Pay in slip) SB-7 ( withdrawal form) SB-7(a) ( Closure form) SB-10 (b) (Transfer application form) SB-5 ( pass book)

Documents SB- Journal RD – Journal TD - Journal Specimen Signature Book

What is Money Laundering?.... People want to legitimize the ill – gotten money through money laundering which is gained through criminal means such as Illegal arms sales, Smuggling, Prostitution rings, Embezzlement, Insider trading, Bribery, Computer frauds, Fake Currency Notes circulation, Drugs trafficking etc. The money so generated is tainted and is in the nature of ‘dirty money’. Processing of conversion of such proceeds of crime, the ‘dirty money’ to make it appear ‘Legitimate Money’ is Money Laundering

Actions which can be taken against persons involved in Money Laundering? Attachment of property. The attached properties may be confiscated and disposed off. Persons found guilty are punishable with imprisonment for a term which shall not be less than three years but may extend up to seven years and shall also liable to a fine up to Rs.5 lakhs.

What is PMLA and its Objective? Prevention of Money Laundering Act 2002. It has come into effect from 1st July 2005 amended on 1.6.2009 It extends to whole India including Jammu & Kashmir. To prevent money- laundering and to provide for confiscation of property derived from, or involved in, money – laundering.

Know Your Customer Purpose To prevent money laundering and combating of financing in terrorism under PML Act-2002 and CFT Deposits are classified under three categories (1) Monthly average balance below Rs.50000/- It includes (A) (i) All types of accounts opened in their name (ii)Accounts opened in the name of minor(s) as guardian (B) (i) All types of certificates in their name (ii) Certificates purchased in the name of minor(s) as guardian

Know Your Customer (2) Monthly average balance between Rs.50,000/- and Rs.10 lakhs (A) (i) All types of accounts opened in their name (ii)Accounts opened in the name of minor(s) as guardian (B) (i) All types of certificates in their name (ii) Certificates purchased in the name of minor(s) as guardian

Know Your Customer (3) Monthly average balance above Rs10 lakhs (A) (i) All types of accounts opened in their name (ii)Accounts opened in the name of minor(s) as guardian (B) (i) All types of certificates in their name (ii) Certificates purchased in the name of minor(s) as guardian

Documents for opening of A/c Category Documents required for opening A/C Recent Photograph Identity Proof Address Proof Source of Fund Physical Verification of address Category-1 Required Copy of PAN card, Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill or letter from any recognized authority Not Required

Documents required for opening A/C Physical Verification of address Documents for opening of A/c Category Documents required for opening A/C Recent Photograph Identity Proof Address Proof Source of Fund Physical Verification of address Category-2 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill Not Required PPT 5.1.1

Documents required for opening A/C Physical Verification of address Documents for opening of A/c Category Documents required for opening A/C Recent Photograph Identity Proof Address Proof Source of Fund Physical Verification of address Category-3 Required Copy of PAN card and copy of any one of the documents like Electoral photo ID, Ration Card, Passport, Driving License, ID from Central / State Govt. or PSU Copy of the any of the documents i.e. Electoral Photo ID, Bank / PO Passbook, Current Electricity Bill, Current Telephone Bill Copy of document proving source from which funds received Address should be verified from State Govt/ Gram Panchayat / Postman of that area before opening A/c. Also followed in case of Transfer of A/c from other office PPT 5.1.1

Opening Of Savings Bank Account… If minor of 10 years age , he can open independently Minimum deposit Rs. 50/- ordinary account & Rs.500/- for cheque account Maximum deposit – No Limit Rate of interest 3.5 % up to 30-11-11 WEF 01-12-2011 Rate of interest 4% per annum

Single account by an adult and by a Minor who is aged 10 years and above. Joint account by two or three adults In case of Joint A/c all the depositor to sign In case of Minor a/c date of birth and maturity should be mentioned in application form.

Opening Of Savings Bank Account Customer to present filled Up Form I (SB-3 card ) Pay In Slip (SB 103) 2 specimen signature slip Cash Introducer details is compulsory in SB-3 Customer should furnish the details of witness in case of nomination

Opening Of Savings Bank Account The following documents are to be submitted compulsorily - 3 copies of recent photograph Identity Proof Address Proof

Opening Of Savings Bank Account (continued) For ID Proof any one of the following accepted Electoral Photo Identity Card Ration Card Passport Identity card from Central/State Govt or PSU POSB Identity card Post Office Identity Card

Opening Of Savings Bank Account (continued) For Address Proof the following be accepted Electoral Photo Identity Card Bank or PO Passbook Current Electricity Bill Current Telephone Bill Letter from any recognized authority

BLUE INK → BY CUSTOMER , RED INK → BY OFFICE 32

BLUE INK → BY CUSTOMER , RED INK → BY OFFICE 33

Role of BPM – Opening Of Savings Bank Account Scrutiny of form 1 (SB-3) & pay in slip(SB-103). Collect cash & Check w.r.t SB 103 Check eligibility for opening of account See that all information furnished by the depositor in SB-3 is correct.

Role of BPM – Opening Of Savings Bank Account Prepare following documents Specimen Signature Book (S S Book) Issue SB 26 receipt Make deposit entry in BO SB journal showing account as new account in remark column along with SB 26 receipt number.

SB-26 Receipt Book It is issued to a depositor who opens SB/RD/TD accounts at BO 50 receipts in triplicate in each book 1st copy given to depositor 2nd copy sent to Account office along with new account documents 3rd receipt will be office copy

SB-26 Receipt Book On receipt of new a/c pass book from AO, it should be given to depositor by collecting back SB-26 receipt It should be pasted along with office copy of SB-26 Acquittance for receipt of PB by depositor obtained on reverse of SB-26 Account number should be noted in SS book, SB journal Date of delivery of PB is to be noted on SB journal

Opening of BPL account Normal procedure for opening of Savings Bank account should be followed In addition to the ID and Address proof prescribed in the KYC norms, a self attested (attested by a Gazetted Officer/Sarpanch/Postmaster in case of illiterate individuals) copy of any document issued by the State/District Authority identifying the individual as member of the BPL household should be taken and attached with SB-3.

Opening of BPL account Documentary proof of BPL household should be attached with SB-3 and a remark in red ink as “BPL” should be recorded in SS Book. Remark “BPL” should be recorded in the SB-26, BOSB Journal .

Exercise 1.4 & 1.5

Subsequent Deposit Depositor has to fill up the pay in slip (SB-103) properly. Depositor should hand over the cash, SB-103 & passbook to BPM. Pass Book & counterfoil of SB-103 should be handed over to the depositor after completion of the transaction.

Minimum amount of deposit Rs. 5/- Mode of deposits – Cash, DD, Cheque, Refund Vouchers, Dividend warrant, Interest warrant, Maturity Instrument, Crossed IPO. A/c becomes silent if no transaction made during last three financial years

Role of BPM (Subsequent Deposit) Examine passbook and pay in slip (SB-103). Check the cash tendered with SB-103. Make entry in following record Passbook BO SB journal Return passbook & counter foil to depositor

SAVINGS BANK --- Subsequent Deposits By Cheque Date of deposit is the date of clearance of cheque If mode of deposit is cheque, then The Cheque should be drawn in favor of depositor or postmaster For out station cheques clearing charges collected at following rate up to Rs. 1000 - Rs. 30/- above Rs. 1000 and Part - Rs. 3/- No clearing charges for local cheques

Exercise 1.6 (On subsequent deposit)

Role of BPM -SB WITHDRAWAL Examine passbook & SB-7 form Verify balance with reference to SB journal Verify/compare the signature on SB-7 with SS book Sign below the signature of depositor in SB-7 Make entry in following records Passbook BO SB journal noting the Date of Last Transaction (DLT) and Date of Next Transaction (DNT) in the previous transaction

SB WITHDRAWAL– ROLE OF BPM Make entry in SB-7 in warrant portion if amount is 5000/ or less than Rs. 5000 Effect the payment & return passbook If amount is more than 5000. Issue SB-28 receipt Forward PB, SB-7 to the A.O. duly entered in BODA On receipt of passed warrant of payment from A.O. effect withdrawal by obtaining acquittance of depositor. Collect the SB-28 receipt

Exercise 1.7 Exercise on Withdrawal

Receipt For Depositor’s Passbook.(SB-28) Whenever the passbook is taken by Post Office for any purpose and not returned to the depositor immediately, SB-28 is issued. Prepared by BPM

BPM should note the following details Purpose of collecting the pass book, A/C Number, Name of depositor, Balance, Probable date of receipt of PB from AO on the back of depositor’s copy of SB-28, When passbook is returned to depositor, acquittance to be taken in depositor’s copy of SB-28 & it is to be pasted with the office copy.

Exercise 1.8 – SB-28

Role of BPM - Closure of the Account BPM should collect application in SB-7A with pass book He should check application with pass book and SB Journal Compare signature with Specimen Signature book Impress date stamp on application side Issue receipt in SB-28

Closure of the Account Forward passbook and application to account office Passbook and passed warrant of payment are received from AO

Closure of the account When depositor calls at PO- -enter withdrawal for full amount in pass book and BO SB journal -note BAT as NIL Note remarks ‘account closed’ in red ink in following records below last entry in pass book and remarks column of BO SB journal first and all unused pages of pass book Specimen Signature book

Closure of the account Pay amount to depositor after getting Acquittance in SB-7A Get back SB-28 and file with office copy Deliver closed passbook to depositor (Acquittance for closed passbook in SB-7A) Impress BO date stamp on the SB-7A near AO/HO date stamp

Lapsed warrant of payment Warrant of payment remaining unpaid after the expiry of 7 days in the Branch office from the date of receipt from AO is treated as lapsed warrant of payment It should be returned to AO If 7th day fall on Sunday or holiday, it should be paid on the following working day. If it is not paid on that day also, then it should be returned to AO

Preparation of SB Journal Entry of opening of account/transaction made in existing account should be made in the BO SB Journal. The column of account number should be left blank in case of new a/cs. The new account number is to be noted only after the same is allotted by the AO. PR number should be noted in the Remarks column in RED INK for new a/c.

Preparation of SB Journal Note the BAT Note DLT Initial the appropriate column The DNT should be entered when transaction happens in the account subsequently

Exercise 1.9

SB Account Transfer A/C can be transferred from one PO to another without any cost/fee. Depositor must fill up the SB-10(b) form & furnish all details properly. Depositor must handover SB-10(b) form & passbook to BPM. BPM should forward application to AO for further action

Transfer Of SB Account Procedure Depositor to submit application with passbook Form SB-10(b) not obligatory Signature of depositor to tally-otherwise to be identified

Transfer Of SB Account– Some conditions Transfer o SB account is not permissible after death of depositor Silent accounts can not be transferred before revival For transfer of Joint Account-all depositors to sign on application

Exercise 1.10

Issue of duplicate pass book Issued by departmental SOs & HOs Application in the prescribed form Fee Rs.10 (postage stamp) Depositor to furnish details BPM to satisfy about identity of depositor

Issue of duplicate pass book - Role of BPM BPM may receive application Sign the application for identity of depositor in relevant column Forward application to AO entered in BODA Deliver duplicate PB on receipt from AO

Exercise 1.11

Thank You