PPF, SCSS, KVP, NSC schemes deposit and cash transaction rules in GDS branches modified
The cash deposit limit and the cash transaction limit have now been increased in GDS and at other Service Outlets.
The maximum limit for cash transactions in post offices has been increased by the government. The cash deposit limit and the cash transaction limit have now been increased to Rs 50,000 in a day from the earlier cap of Rs 25,000 in a day. The government had recently issued a note regarding the revision of cash acceptance limit in GDS (Gramin Dak Sevak) Branch post offices and cash transaction limit at other Service Outlets – SOLs.
The issue of enhancement of the present limit of acceptance of cash at GDS Branch Post offices and cash transaction limit was under consideration by the government in the context of the difficulties being faced by pensioners, depositors of SSA/PPF accounts, and rural depositors.
The limit of Rs 25,000 was prescribed in para 18 and para 27 of SB Order No 05/2016 dated, 2l.06.2016. Now, the text of para 18 and para 27 of SB order 05/2016 is replaced as follows: –
i) Para-I8: No BPM shall accept cash deposit transactions for more than Rs.50,000 in an account in a day. Further, till the PPF/SCSS/MIS/KVP/NSC schemes are made available in CBS App, deposit in these accounts is to be accepted by withdrawal form or cheque only.
ii) Para-27: All PosB cheques issued by any CBS Post office if presented at any CBS post Office shall be treated as AT PAR cheques and shall not be sent for clearing. No cash transaction for more than Rs. 50,000 shall be allowed at other SOLs in an account in a day.
Back in July 2020, the Department of Posts, under the Ministry of Communication, had communicated to all the Head of Circles or Regions that the opening of PPF, SCSS, NSC, KVP, and MIS accounts will now be allowed in GDS Branch Post Offices. It will, however, be subject to certain conditions in the beginning. The move will allow rural investors to benefit from investing in these schemes.