Linking your National Savings Monthly Income Account (MIS) with your savings account or bank account has become mandatory. MIS is one of several postal savings schemes that offer a fixed rate of return and can be opened with a minimum of Rs1000. From April 1 this year, the government will credit interest rates on MIS accounts only if they are linked to savings or bank accounts. Failure to link the two accounts by March 31, 2022 may result in interest earned to be credited in various offices.
The idea behind linking MIS accounts with savings accounts or PO bank accounts is to ensure that citizens can obtain additional interest income, boost digital momentum and combat money laundering.
It has been noted that some MIS account holders have not linked their accounts to PO savings accounts or bank accounts for the credit of their monthly, quarterly, semi-annual and annual interest – and that the interest due on this account have not been paid and credited back to the miscellaneous office. Many depositors don’t know this, but undrawn interest will earn interest. Simply put, if you link your MIS account to a PO savings account or a bank account, you are eligible to earn additional interest on any interest that is not withdrawn from his MIS account.
In addition, if an MIS account is linked to a savings account or a bank account, depositors can withdraw due to interest without having to visit the post office, and the product can be used through various electronic means. . Among other advantages, it is possible to avoid the filing of several withdrawal forms for each MIS account and depositors can benefit from the possibility of automatically crediting the amount of interest from their MIS account via the savings account PO to the accounts. RD.
In a statement, the Center said, “To have better control over POSB operations, promotion of digital transactions, prevention of money laundering activities and as a preventive measure to avoid fraud, the competent authority has decided to compulsorily link the PO savings account or Bank account to credit the interest payment of the MIS/SCSS/TD accounts.”
Following this, the government issued a series of directives with effect from 03 March 2022.
It has been decided that CEPT, Chennai will provide a list of such active MIS accounts not linked to savings account (either PO savings account or bank account) to all circles and CPC (CBS). Later, Circles will organize a special campaign to link savings accounts to MIS accounts for interest payments, either by sending a letter of request or by contacting these account holders.
When linking a PO savings account, an MIS account holder would need to submit Form SB-83 while linking a bank account would require filing Form ECS-1. In both forms, an account holder must present booklets for such endorsement at the relevant post office. The necessary remarks must be made in the MIS booklet on the last page of the booklet with signature and stamp.
In addition, the IPPB has been instructed to design a similar foolproof system to enable its customers to use interest credit from MIS accounts to their IPPB savings account, and to inform the Department so that it be informed to all concerned.
In the event that an MIS account holder fails to link a PO savings account or bank account until March 31, 2022, the interest you have earned will be credited to various office accounts and the remaining amount will not be paid only by credit to the PO savings account or by cheque. No cash interest payments will be permitted from the miscellaneous office account from 01 April 2022.
The MIS account is a savings plan that gives an interest rate of 6.6% per annum payable monthly. The minimum investment limit is Rs 1,000 and can be extended to a maximum of Rs 4.5 lakh. A person can opt for MIS either individually or jointly. A minor over the age of 10 can open the account in their name, however, below this age group, the account can be opened by a guardian or parent.
If the MIS is opened jointly, all joint holders will have an equal share in the investment. In addition, for the calculation of an individual’s share in a joint account, each co-holder has an equal share in each joint account.
It should be noted that in GIS, interest is payable at the end of a month from the date of opening and so on until maturity. Withdrawal of deposits from the account is not permitted before the expiration of one year from the date of the deposits. Additionally, if an account is closed after 1 year and before 3 years – a deduction equal to 2% of the principal amount will be deducted. However, if an account is closed after 3 years and before 5 years, then the deduction is equal to 1% of the principal amount.
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