Points to Remember-Changes in Ruling in RD Accounts

 points related with SB order for deposit in RD accounts are furnished below

(1) In case of RD accounts opened between 1st Day and 15th Day of a calendar month, the each subsequent deposit in the account shall be made up to 15th day of the next month and in case of RD accounts opened between 16th day and last working day of the calendar month, the each subsequent deposit in the account shall be made up to the end of the next calendar month.

Procedure:-This change should be made applicable from 1.01.2012 to all old as well as new accounts. In the month of January 2012, as and when any depositor/MPKBY agent attends the post office for subsequent deposit, a rubber stamp should be fixed on the cover and first page of the Passbook informing the last date up to which the depositor can deposit his monthly installment in the next month. Following is the sample of stamps:-

Sample-1

LAST DATE OF DEPOSIT IS

15th DAY OF NEXT MONTH

Sample-2

LAST DATE OF DEPOSIT IS LAST WORKING DAY OF NEXT MONTH

Sample-1 is to be fixed on the passbooks of the accounts opened between 1stand 15th Day of a month and Sample-2 is to be fixed on the passbooks of the accounts opened between 16th day and the last day of a month. Till the software is amended, penalty should be charged as per old procedure i.e if the amount is not deposited up to the last working day of the month.

(2) In case maturity value of a discontinued RD account is retained after the date of maturity, the depositor shall be entitled to a simple interest at the rate applicable from time to time to post office savings account on the amount deposited from the date of maturity till date of payment.

Procedure:- At present, interest at the rate of 9.25% was being paid on such accounts. This amendment will be made applicable from 1.01.2012 to all old as well as new accounts. This calculation is to be made manually till the software is modified. Difference of interest calculated by the software and and interest calculated manually should be noted in the Register to be maintained in manuscript for future reference.

(3) In case of premature closure of RD accounts, simple interest at the rate applicable to post office savings account from time to time shall be payable.

Procedure:- Presently, interest is being calculated by the software by compounding the rate of savings account every year. This shall be applicable to the existing RD accounts also. This calculation shall be made manually from 1.01.2012 till the software is amended. Difference of interest calculated by the software and interest calculated manually should be noted in the Register to be maintained in manuscript for future reference.

(4) In case maturity value of RD Account is retained after 10 years, Post Maturity Interest shall be payable at simple rate of interest applicable from time to time to savings account from date of maturity to date of payment.

Procedure:- This is a new provision which does not exist in the software. This calculation shall be made manually from 1.01.2011 till the software is amended. This will be applicable for existing RD accounts also. Entry of such accounts in which PMI is paid should be made in a register to be maintained in manuscript for PMI for future reference.

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

Procedure:- Now PMI should be paid from the date of maturity to date of payment at the simple interest rate applicable to savings account from time to time. 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 15.12.2011, he will be paid PMI at the rate 3.5% from 26.8.2010 to 30.11.2011 and at the rate 4% from 1.12.2011 to 14.12.2011. This shall be applicable to the existing as well as new investments in all schemes. Calculations’ are to be made manually till software is amended and recorded in the Register to be maintained in manuscript for future reference. Following formula should be adopted while calculating the Post Maturity Interest for the number of days:-

To calculate simple interest for number of days:- MV×R÷100×N÷365

MV= Maturity Value

R= Rate of interest

N=Number of days the account stands

Note:- While calculating number of days, the day on which account matures shall be counted in number of days but the day on which payment is being taken shall not be counted.