InvestorQ : What are the new savings and interest rules announced by the India Post?
Sneha Balasubramanian made post

What are the new savings and interest rules announced by the India Post?

9 months ago
Days, after the government changed the rules for the Public Provident Fund, the India Post, has announced new rules regarding the interest on savings from the post office. Under the new rules, if a person receives interest payment from the Post Office Monthly Investment Scheme (MIS), Senior Citizen Savings Scheme (SCSC), and Time Deposit (TD), it is mandatory to open a savings account with the post office compulsorily. This would mean that from 1st April 2022, individuals won’t receive interest payments in cash but would need post office savings to account for the credit.

The new rules will apply to every individual whether the interest payment is made monthly, quarterly, or annually. If the investor already has a bank account with the post office, it needs to be linked to the respective savings scheme before 1st April 2022. In case the investor does not open or link the savings account to the savings scheme, the interest payment will be credited to the official account of the post office. The interest payment will be credited to the investor’s saving account only after the investor opens or links the savings account.

The amendments came after the post office raised concerns about the rising cases of money laundering and other financial frauds. Furthermore, the post office’s decision is also aimed at promoting the use of digital transactions and increasing the efficiency of the post office’s banking operations. You can visit your nearest post office branch to ensure you get regular interest payments.