Postal Services Board (PSB) Instruction • To Grab Revenue Opportunity Of Rs.132.76 Crores per Annum - By Raising The Balance To Rs. 500/- Or More & Reviving The Silent Accounts

As you will be aware, vide Notification GSR No. 914(E) to 922(E) dated 12/12/2019, the Govt.

of India has made it mandatory, effective 12.12.2019, that

1) A POSB Account can be opened only with a minimum balance of Rs. 500.

2) The customers of the existing accounts having a balance below Rs. 500 will have to raise their balance within a year accordingly.

• The Balance After Any Withdrawal Should Not Come Under Rs. 500.

3) An existing POSB account not maintaining a minimum balance of Rs. 500 will be subjected

to deduction of a yearly fee of Rs. 100/-.

4) An account going into negative/zero after deducting the fee will be treated as closed.

2. CBS Data shows that 13 crore accounts (including Silent Accounts) are currently having a balance less than Rs. 500.

A time window upto 11 December, 2020 is available to bring them to Rs. 500 or more.

A visible campaign therefore needs to be run to contact & inform account holders and notify them of minimum balance requirement.

At 13 crores, the DOP stands to loose Rs. 2800 crore (approx.) per annum as remuneration payable by MoF, should these accounts not maintain the minimum balance.

3. So far as your Circle is concerned there are 62.52 lakh (approx.) accounts not fulfilling the minimum balance criteria.

• A new target is therefore is being added for you to convert at least 80% of these accounts into eligible for remuneration by raising the balance to Rs. 500 or more and reviving the silent ones.

4. This is an unprecedented, once in a career, opportunity for you to save revenue worth Rs.132.76 crores per annum.

With best wishes

Yours sincerely,

(Ashok Pal Singh)