SB Order No.12/2007 : Amendment to Rule 4 and Rule 5(1) of Monthly Income Account Rule 1987 regarding maximum limit of investment in MIS

SB ORDER NO. 12 /2007 

No.110-1/2006-FS 

Government of India 

Ministry of Communications & IT 

Department of Posts 

Dak Bhawan, Sansad Marg, 

New Delhi-110001,Dated: 5.9.2007 

To IMMEDEATE 

All Heads of Circles/Regions 

Addl. Director General, APS, New Delhi. 

Subject:- Amendment to Rule 4 and Rule 5(1) of Monthly Income Account Rule 1987 regarding maximum limit of investment in MIS. 

Sir / Madam, 

Min. of Finance, (DEA) Has amended Rule 4 and Rule 5(1) of Post Office Monthly Income Account Rules 1987 vide its notification dated 1.8.2007 issued vide File No. 2/10/2007-NS-II. Copy of this amendment is enclosed. 

2. As a result of this amendment, now only one deposit in the MIS account in multiple of Rs. 1500/- can be made instead of Rs. 1000/- as provided earlier. 

3. The maximum limit of investment in a single account has been raised from Rs. 3 lakh to Rs. 4.5 lakh and in joint account opened by two or three adults; the maximum limit has been raised from Rs. 6 lakh to Rs. 9 Lakh. 

4. It has been observed that a declaration from the depositor that “ the deposit in all accounts taken together opened by him do not exceed the maximum limit” is not being obtained in SB-3 while opening MIS account which is resulting in opening of MIS accounts in contravention of Rule 4. Also 

the depositors are not being guided properly regarding share of the depositor in joint account. It is reiterated that as per MOF(DEA) Notification No. GSR 706(E) dated 5.9.2000, the depositor’s share in the balance of a joint account shall be taken as ½ or 1/3rd of such balance held in a joint account opened by two adults or three adults respectively. Min of Finance has taken a serious view on non-observance of rules by the postal staff, which is resulting in financial loss to the Govt. in court cases. MOF has asked to give proper training to the staff working on counters and take disciplinary action against the officials responsible for such lapses. 

5. It is requested that this amendment may be brought to the notice of all post offices immediately for information, guidance and necessary action and necessary action may also kindly be taken with regard to para 4 above. 

6. This issues with the approval of DDG(FS) 

Yours faithfully, 

(Kawal Jit Singh) 

Assistant Superintendent Posts (SB&CC) 

Copy to:- 

1. Director (Fgn.Post & Mkt) O/o Pr. CPMG T..N Circle with the request to issue instructions for making required changes in Sanchay Post Software.

2. Director of Audit (P&T), Delhi.

3. All Directors/Dy. Directors of Accounts, Postal

4. Director, Postal Staff College, Ghaziabad.

5. All Directors, Postal Training Centres.

6. DDG(VIG)/DDG(Estt.)

7. ADG(BS)/ADG(Pension)/ADG(CB)/ADG(SBC)

8. AD /Inspection/PF/Vigilance/Postal Accounts Section

9. All Accounts Officers ICO(SB)

10.All recognized Staff Unions and Associations.

11.Min. of Finance (DEA) NS-II section, North Block, New Delhi.

12.PS to Member (I&FS)