Fraud in post offices: check the measures taken for the proper functioning of POSB operations

Fraud at the Post Office: Several cases of fraud linked to the Post Office Savings Bank (POSB) have been observed recently. This is in line with a recent memorandum from the Department of Posts in which it directed all post offices to take measures for the smooth running of POSB operations and the prevention of post office fraud.

The association of the account holder’s mobile number has already been mandatory since October 2017 for the opening of any new account. Subsequently, steps were also taken to link mobile number and PAN in all existing accounts.

Further, in accordance with Rule 6(b) of the Government Savings Promotion General Rules 2018, “If a person does not submit the permanent account number at the time of opening an account, he shall submit it to the accounts office within six months from the date of opening the account and if a depositor who has already opened an account before the date of this notification and has not yet communicated his permanent account number to the accounting, he must do so within six months and if the depositor does not submit the permanent account number within the specified period of six months, his account will cease to be operational until he submits the account number permanent in accounting.

In order to reduce the risks of embezzlement and to prevent money laundering activities and as a preventive measure to combat fraud, the following guidelines have been issued:

• Mobile/PAN number binding for financial transactions at all post offices.

• For any transaction of Rs. 20,000 and above, the mobile phone number must be verified and, if necessary, updated before initiating the transaction.action.

• For any transaction of Rs. 50,000 and above, the PAN must be verified and, if necessary, updated before initiating the transaction.

• If the account is not KYC compliant, the KYC document must also be obtained from the account holder/guardian as prescribed in the rules.

• If the account holder does not have a PAN number, Form 60/61 prescribed under the Income Tax Act can be obtained.

• In the event that a filer’s mobile number needs to be changed, a separate written request may be obtained from that filer.

• Non-CBS post offices must also obtain a mobile phone number for transactions above Rs. 20,000 and PAN number for transactions above Rs. 50,000 and the same must also be written on the voucher by the account holder .

• Collection of passbooks at the time of closure/premature closure of any RD/TD/MIS/SCSS/KVP & NSC account.