Basic Savings Account can be opened in Post Offices

The Ministry of Finance recently notified changes in Post Office Savings Account Scheme, 2019. The ministry notified that a beneficiary of Government welfare scheme can open a basic savings bank account with any post office in the country.

What are the changes introduced?

• The accounts can be opened in an India Post Payment Bank or a Scheduled Commercial Bank.
• The deposit required to open this account is NIL.
• The account shall be opened by a beneficiary of any Government Welfare Scheme. The account shall also be opened by a beneficiary who is a minor. However, it is mandatory for the minor to assign a guardian.
• The Basic Savings Accounts that were opened under Post Office Savings Account Rules, 1981 are not covered under the new notification.

What are the rules in operating Basic Savings Account?

The Basic Savings Account is very much like that of the Basic Saving Bank Deposit Account. However, the Basic Savings Account has certain conditions of operations. They are as follows:

• The beneficiary can open the Basic Savings Account only in a post office or in a bank.
• According to the RBI Guidelines to the Basic Savings Bank Deposit Accounts, the users can deposit or withdraw money from these accounts any number of times in a month. On the other hand, in a Basic Savings Account, withdrawal can be made only four times per month.

Pradhan Mantri Jan Dhan Account

The accounts opened under Pradhan Mantri Jan Dhan Yojana are Basic Savings Account. So far 42.2 crores of such accounts have been opened. They currently hold Rs 1.45 lakh crores of balance.

Post Office Savings Account

The Post Office Savings Account is also a Basic Savings Account. It shall be opened with a minimum amount of Rs 500. It allows to deposit a minimum of Rs 10 and there is no maximum deposit limit.

Month: Current Affairs - April, 2021