Treating of Old RD Accounts in c/w CBS

Subject: Treating of

Old RD

accounts in c/w CBS-reg.

                        Ref: RO SK/CBS/Review Meeting dtd 04.02.2011

                                                             * * * * * * *

            Refering to DO letter No. SK/CBS/9-1/CBS/Dlgs/KW dated                                02-02-2011 of DPS(SK) & above mentioned instruction regarding completion of preparatory work to CBS in c/w implementation of Core Banking Solutions in Department of Posts wherein you are suggested to charge the amount of RD discontinued accounts which are opened between 1980 and 2004 to UCR.  

2.         As per Rule-115 (1) (ii) of POSB MAN VOL I, if the maturity value of a discontinued RD account is retained after the date of maturity, post maturity simple interest at the rate applicable per annum for a full completed year and at SB rates for completed months if the period is less than a year will also be paid on the value payable on the date of maturity. The post maturity interest may be paid up to a maximum period of 5 years from the date of maturity of the account. 

3.         In view of above, the following guidelines are issued for necessary action:

i.              RD discontinued accounts which are opened prior to 01-01-2001 may be taken for closure and crediting of amount to UCR.

ii.            Interest may be calculated as per provisions in r/o all such RD discontinued accounts before crediting to UCR & entire amount (principal + interest + post maturity interest etc.,) may be credited to UCR.

iii.           Maintain necessary records for future reference.

iv.           If any claim is received on later date, amount charged to UCR may be paid to the depositor/claimant by per contra adjustment.  

v.            Other procedure if any may be followed scrupulously.

vi.           These actions should be completed before 15.02.2011 without fail.

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