SB ORDERS

Sub: Revision of maximum limit of subscription in a financial year, rate of interest on balance in the PPF Accounts and rate of interest charged on loan taken from PPF account with effect from 1.12.2011.
D. G. Posts F. No. 113-01/2011-SB dated 24.11.2011(S.B. Order No. 24/2011)
The undersigned is directed to convey the following decisions of the Min. of Finance (DEA) which shall be effective from 1st day of December, 2011.
(i) Existing maximum limit of subscription in a financial year of Rs. 70000/- shall be of Rs. 1,00,000/- (One lakh) in existing PPF accounts as well as new PPF accounts to be opened on or after 1.12.2011.
(ii) The rate of interest on the subscriptions made to the fund on or after 1.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point six percent (8.6%) per annum.
(iii) The rate of interest charged on the loan taken by the subscriber of a PPF account on or after 1.12.2011 shall be "two per cent per annum" .However , the rate of interest of " one per cent per annum" shall continue to be charged on the loans already taken or taken up to 30.11.2011
2. It is requested to circulate these instructions to all field units and ensure that these instructions are strictly followed.
.3. This issues with the approval of Secretary Posts.
Sub: Revision of maturity period , rate of interest and discontinuation of 5% bonus on maturity of Monthly Income Account scheme with effect from 1.12.2011.
D. G. Posts F. No. 113-01/2011-SB dated 24.11.2011(S.B. Order No. 25/2011)
The undersigned is directed to convey the following decisions of the Min. of Finance (DEA) which shall be effective from 1st day of December, 2011.
(i) The maturity period of Monthly Income Accounts to be opened on or after 1st day of December 2011 shall be 5 years.
(ii) The rate of interest on new MIS accounts on or after 1.12.2011 shall be 8.2% per annum and the interest so calculated on annual basis shall be rounded off to the nearest multiple of rupee one and for this purpose any account of 50 paisa or more shall be treated as rupee one and any amount less that 50 pause shall be ignored. Interest shall be paid monthly on completion of a month from the date of deposit.
(iii) There shall be no bonus admissible on maturity in the accounts opened on or after 1.12.2011.
2. It is requested that a rubber stamp shall be prepared and placed on all new MIS Passbooks issued on or after 1.12.2011 with language as "Maturity period shall be 5 years from 1.12.2011". While accepting deposit by cheque for opening of MIS account from 25.11.2011, a rubber stamp should be placed on the acknowledgment of cheque given to customer that " No bonus shall be payable if cheque is credited to Government account after 30.11.2011.his may be circulated to all post offices for information and necessary guidance.
3. This issues with the approval of Secretary Posts.
Sub: Revision of interest rate on balance at credit in Post Office Savings Account with effect from 1.12.2011.
D. G. Posts F. No. 113-01/2011-SB dated 24.11.2011(S.B. Order No. 26/2011)
The undersigned is directed to convey the decision of the Min. of Finance (DEA) for revision of interest rate on the balance at credit of a Post Office Savings Accounts from 3.5% to 4% per annum with effect from 1st Day of December, 2011.
2. It is requested that this may be circulated to all post offices for information and necessary guidance.
3. This issues with the approval of Secretary Posts.
Sub: Revision of rate of interest of Time Deposit Accounts with effect from 1.12.2011.
D. G. Posts F. No. 113-01/2011-SB dated 24.11.2011(S.B. Order No. 27/2011)
The undersigned is directed to convey the following decisions of the Min. of Finance (DEA) which shall be effective from 1st Day of December, 2011:-
(i) The revised rate of interest in Time Deposit Accounts opened on or after 1.12.2011 shall be :
Period of Deposit Rate of interest per annum (Quarterly compounded)
1 year 7.7
2 Years 7.8
3 Years 8.0
5 years 8.3

(ii) In case of premature closure of 1 Year,2 Year,3 Year or 5 Year account on or after 1.12.2011,if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit , simple interest at the rate applicable to from time to time to post office savings account shall be payable.
(iii) In case of premature closure of 2 Year,3 Year or 5 Year account on or after 1.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit ,interest on such deposits shall be calculated at the rate , which shall be one per cent less than the rate specified for a period of a deposit of 1 Year, 2 Year,3 Year as mentioned in th concerned table given under Rule 7 of POTD Rules.
2. It is requested that this may be circulated to all post offices for information and necessary guidance.
3. This issues with the approval of Secretary Posts.
Sub: Revision of rate of Recurring Deposit Accounts with effect from 1.12.2011.
D. G. Posts F. No. 113-01/2011-SB dated 24.11.2011(S.B. Order No. 28/2011)
The undersigned is directed to convey the following decisions of the Min. of Finance (DEA) which shall be effective from 1st Day of December, 2011:-
(i) The amount repayable on a RD account of Rs.10 denomination opened on or after 1.12.2011 shall be Rs. 738.62. The amount repayable on an account of any other denomination shall be proportionate to Rs. 738.62.