Articles by "PPF"

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Showing posts with label PPF. Show all posts

January 30, 2019 , , ,
In case of an eventuality, nominee is the beneficiary and supersedes the Will for PPF and Life Insurance (Married Women's Property). In case of equities, if the value is more than Rs 5 lakh, then probate is needed
Many of us have a monthly budget where we list our expenses as per priority. Some of us also diligently plan our investments according to various goals. But how much attention do we pay to the financial assets that we want to pass on to our family?

This is an important aspect of financial planning to ease the process of transfer of your assets - liquid or otherwise - in case of your death. It will ensure that, in your absence, your family can access the wealth without too much of an hassle.

Nominee or Will
At the time of opening a bank account, buying a life insurance policy or residential property, it is essential to mention a nominee. It could be your wife, children, mother, father, brother, sister or uncle. In case of your death, the nominee will easily get these assets.

However, the nominee is not the rightful or legal owner of the money in your bank account or of your assets. But under Companies Act, a nominee mentioned in equity shares held in demat account can be a legal heir.

Sachin Parekh, founder Save N Protect Financial Planners, says an individual may have multiple assets such as mutual funds, fixed deposits and insurance policies. "Not doing proper nomination and succession planning can put the individual at the risk of losing the assets completely or the nominees going through lot of trouble to recover them."

According to Karan Gupta of Sykes and Ray Equities, a Will and a nominee appointment should be in sync. The nominee is the ultimate owner only in two cases, where the nominee is the beneficiary and supersedes the Will. One: under Life Insurance (Married Women's Property) Act, 1874, and two, in Public Provident Fund.

"In case of demat account if the value of the fund is more than Rs 5 lakh then probate is needed," Gupta said.

A probate is a process under law where the Will of a person is scrutinised for its authenticity.
Nominee can give a valid discharge
Harshvardhan Roongta, of Roongta Securities, says a nominee can give a "valid discharge" for the bank, a company or any other financial institution that wants to settle the 'liability'. Say, for example, if a policyholder appoints a nominee, then the liability of the insurance company with respect to the policy stands discharged, when the amount is paid to the registered nominee.

"Whether there is a dispute in a family over succession of assets or not, one should make a Will, as it is helpful in smooth transfer of one's assets to the next generation," Roongta says.

If a person makes his or her brother a nominee in a property or a flat, the brother becomes a nominee transferee. He is not a proper or permanent transferee and can only deal with aspects like clearing dues of the society and taking care of the property. "He becomes a nominee member with no further rights to sell or transfer the property under the Cooperative Societies Act," Roongta explains.
Anyone can make a Will
Don't rely on a nominee alone. Draw up a Will which will prevail in most circumstances. A Will is a document that clarifies a lot of things. "A Will is has got nothing to do with the amount of money or the number of assets involved that a person wants to transfer," says Suresh Sadagopan, founder, Ladder7 Financial Advisories.

When one appoints a nominee he or she should also make the same person a beneficiary. "A nominee and a beneficiary should always be the same person. In case of a married couple, the natural beneficiary will be the spouse," Sadagopan adds. If a person dies interstate, according to the Hindu Succession Act, assets will go to the legal heir and follow a trajectory before they go to the lawful owner. "If a person had made a Will, then after his death the assets will go to the person who is named in the Will. It must be noted that ancestral properties cannot be willed under Hindu Succession Act," Sadagopan points out.

Wife natural beneficiary of joint account
In case of a joint bank account, when the husband dies, the wife becomes natural beneficiary. The bank may ask for succession certificate. The Will is probated and the death certificate also sought in certain cases. If there is no Will, the deceased's children, mother or siblings can issue a no-objection certificate allowing the deceased's wife to lay claim over his assets.

FOR SMOOTH TRANSFER OF ASSETS
Give power of attorney (PoA) on incapacity, in case the person is mentally ill or incapacitated to take sane decisions, two doctors need to certify
In case of a non-Muslim and two marriages, it is mandatory for one marriage to be void. Even though marriage is void, children born out of a marriage with a ceremony have a stake in the inheritance
All adults should have a durable PoA, specific PoA in case of incapacity
Source: Sykes & Ray Equities

January 29, 2019 ,
Dear Sir/Madam,

I am directed to convey the following

This is regarding marking of PPF loan accounts as failed during EOY loan interest recovery batch due to difference in SOL/CIF.

a) PPF account and PPF Loan account in different CIFs and
b) PPF account and PPF Loan account in different SOLs

Solution for above 2 issues. POs are requested to

1. Merge PPF Loan accounts with PPF account CIF for scenario (a)

2. Transfer PPF loan to SOL where PPF account stands if balance is not 0.

It is also seen that some PPF Loan accounts are having zero as balance amount and hence may be closed after checking whether interest recovery has happened correctly. Interest to be collected if not recovered.

EOY loan interest recovery batch will mark these loan accounts as failed due to the difference in SOL/CIF. The  list may be circulated to the concerned SOLs for immediate necessary action.



Please treat this as urgent.
[11:30 AM, 1/29/2019] SA1. ROHIT THAKARDA: After setting and installing IPPB In internet explorer 11. 
Finacle open after selecting Fincore page blank (white)
Any solution.?
[11:40 AM, 1/29/2019] SA1. ROHIT THAKARDA: Any one have Service pack1 for 64bit?
[11:43 AM, 1/29/2019] +91 91642 65549: Sir kindly send any setting in for ippb login at csi domain user please?
[12:17 PM, 1/29/2019] SA1. Shashank dwivedi: Sir,

Any one have rollout 2 installation folder download path
[2:45 PM, 1/29/2019] +91 99791 10730: Finacle status?
[3:41 PM, 1/29/2019] PA1. sanjaykrmkr2: Kindly share postal order payment by cheque in pos and csi
[5:21 PM, 1/29/2019] SA2. Manimaran. A.: Brother... how to create post box data base..
now un able to book post box transaction through pos

December 30, 2018 , , , , , , , , , ,
This is regarding streamlining the transactions in office accounts 0382 (For opening of account and subsequent deposit by other Bank Cheque) and 0017 (CLEARING DR. A/C. OUTWARD CLEARING). This streamlining process is to resolve the below issues
1. 0017 office account is used both for outward clearing (by system) and subsequent deposits including RD agent transactions .

2. Several offices are not following cheque clearing process properly and debits for new account are made without proper credits resulting in huge debits in office account (0382).
New Procedure to be followed :
1. Cheques for New account Opening and Subsequent deposits should be lodged in office account 0382 ONLY (For opening of account and subsequent deposit by other Bank Cheque); from 01/01/2019 onwards. Cheque lodging will be allowed only in 0382.

2. Office account 0017 will be accessed by SYSTEM only for cheque clearing operations wef 01/01/2019

3. Balances in office account 0382 should always be 0 or in credit. Validations are to be deployed for not allowing DEBITS in office account 0382 if the balance of the account is in DEBIT. As part of this activity, debit balances in this office account (0382) will be nullified to zero after 15/01/2019. Henceforth, debit from this office account cannot be done if sufficient balance is not available. Suitable instructions to be issued to POs for following cheque clearing process correctly to ensure that necessary credits are available in 0382 office accounts before debiting. Further, circles should ensure that reconciliation in 0382 office account is completed and debit balances are tallied against necessary cheque clearance and the same is accounted in daily account. This exercise should be completed by all circles. Discrepancies if any to be reported immediately.

4. Credits into 0382 will be only through cheque clearing and transfer could not be done from other office accounts. It is observed that some POs are debiting from other office accounts for crediting into 0382. Necessary validations are built to restrict credit from other office accounts and debit in this office account without credits.

5. As interim procedure, offices can continue to debit 0017 for a period of one week (till 07/01/2019), during which all cheques lodged in 0017 prior to above configuration changes will get cleared and credited into customer accounts.

6. Amount credited through clearing in office account 0382 upto 15/01/2019 should be utilised latest by 15/01/2019 itself, for account opening/subsequent deposits. Once the balance is made zero in the offices where 0382 is in debit balance, further debiting will not be allowed.
Configuration change along with deployment of patch :
0017 office account will be restricted for debit: Only 0382 will be allowed as debit account in all the account opening menus and CRDP / CPDTM; 0017 office account cannot be debited from 08/01/2019.

Configuration change related to HAGTXP: This will be done for handling debit transactions through agent portal to 0382 office account instead of 0017 office account. [proposed to be done from 08/01/2019]. The cheques cleared in 0382 during the preceding week have to be kept pending for processing till 07/01/2019. Hence all the agent cheques which got cleared from 01/01/2019 to 07/01/2019 need to be kept pending for processing till 07/01/2019. Only from 08/01/2019, Cheque bulk list where credits are available in 0382 can be processed.

0382 office account can be used for account opening and subsequent deposits (except Agent bulk) from 01/01/2019 to 07/01/2019. Agent bulk list where cheques got cleared for the above period to be kept pending till 07/01/2019.

Exception handling: Any cheques lodged in 0017 upto 31/12/2018 and cleared after 07/01/2019, will be handled separately by allowing transfer between 0017 & 0382 for the specific SOLs . This will be done after receipt of mail from concerned circle CPCs. This process is only for clearing backlog cheques if any. 

Following will be the status of accounts, on successful completion of the above configuration / operational changes:

​​0017 will be used for clearing operations only; this office account at SOs (non-clearing offices) will not be getting any transactions. 

0382 will be either in credit or zero balance.

The balance amount transferred from 0017 to 0382 office account, will have supporting transactions in 0382 ledger which can be audited separately to check whether cheques for these amounts were cleared manually instead of processing through zone operations. A report will be provided to circles with details of office account and amount of debit cleared for reconciliation. Circles can use this report for reconciliation to ensure that debits have been accounted in their daily account/summary.

The debit transactions in 0017 other than clearing transactions, can be audited by circles separately to check whether cheques for these amounts were cleared manually instead of processing through zone operations.

Any clarification on the above may be referred to helpdesk.cbs@indiapost.gov.in

November 19, 2018 ,

Fixed deposit, PFF and Sukanya Samriddhi scheme are all debt investment instruments. If you are planning to invest for your child's education, here is a comparison between Sukanya Samriddhi Scheme, PPF and FD.



Over the last decade, the cost of living has shot up significantly. Education especially has become way costlier than how it used to be about 10 years ago. A few years back parents' savings were enough to fund their child's education but now parents need advance planning, savings and investment to make sure that have enough money for their child to receive the best education possible.
For years, parents have relied on fixed deposits (FD) to raise money for their children's education but there are other investment instruments available like the Sukanya Samriddhi Yojana and PPF. Fixed deposit, PFF and Sukanya Samriddhi scheme are all debt investment instruments, which means that they are risk-free.

If you are planning to invest for your child's future, here is a comparison between Sukanya Samriddhi Scheme, PPF and FD.
Sukanya Samriddhi Scheme: Sukanya Samriddhi Yojana (SSY), is a small savings scheme, launched by the Government of India in January 2015 for girl children. This government-backed scheme helps parents of girl children build a corpus for the future education and marriage of their daughter. 
Interest rate: Interest rate offered in Sukanya Samriddhi account is decided by the government and is notified from time to time by the Finance Ministry in every quarter. Currently, 8.5 per cent interest rate is provided on these accounts for the December quarter.
Lock-in period: It has a long lock-in period of 21 years from the date of opening the account. 
Tax Benefits: It offer EEE tax benefit which means that the contribution, the interest earned and the maturity proceeds are exempted from tax under Section 80C of the Income Tax Act.
Eligibility: It is only for girls below 10 years of age. Only one account can be opened in the name of one girl child. Parents can open maximum two Sukanya Samriddhi accounts.
Contribution: A minimum deposit of Rs 1,000 is required to be made every year in Sukanya Samriddhi Account while one can deposit a maximum of Rs 1.5 lakh every year into this account.
Withdrawal: Premature withdrawal can be made once the girl child attains the age of 18 years. Up to 50 per cent of the balance standing at the end of the preceding financial year can be withdrawn.
Public Provident Fund: PPF is a long-term fixed investment scheme. It is one of the safest instruments that can be used by individuals or salaried employees who are looking at long-term options for tax-free earnings. 
Interest rate: The interest rate on PPF is compounded on an annual basis. Currently, PPF is offering 8% rate of return.
Lock-in period: It has a long lock-in period of 15 years from the date of opening the account. 
Tax Benefits: It offer EEE tax benefit which means that the contribution, the interest earned and the maturity proceeds are exempted from tax under Section 80C of the Income Tax Act
Eligibility: One PPF account per person can be opened. Parents/ legal guardians can open a PPF account for minors. The child can choose whether he/she wants to continue the PPF account after the 15-year maturity period. He/she can either close the account or can be extended it by ‘n’ number of times for a block of five years each.
Contribution: When a PPF account is opened for the minor it should be noted that the contribution in both PPF accounts combined does not exceed Rs 1.5 lakh in a financial year.
Withdrawal: While partial withdrawal is allowed from the 7th year, the withdrawal rules for extended PPF accounts allow individuals to withdraw money once in a financial year.
Fixed Deposit: Fixed deposit is one of the safest investment instrument. FDs provide guaranteed returns as the interest rate is fixed for the entire term. FDs are safer but they provide low liquidity. FDs account holders can earn an interest of 7% to 8.5% depending upon their lender. Fixed deposit returns are fully taxable which means that your returns will be eroded by inflation as well as tax.
 
PPF Vs Sukanya Samriddhi Scheme Vs fixed deposit
Fixed deposit: For short-term goals like your child's primary school education or middle-school education, fixed deposits might be an ideal choice because they offer guaranteed returns and the interest rate is fixed for an entire term. FD returns are completely taxable which do not make them the best investment instrument for long-term financial goals.
Sukanya Samriddhi Scheme: The scheme is limited only to girl children and has a lock-in period 21 years. The long lock-in period makes it a suitable investment instrument if you are planning to save up for your daughter's wedding. For higher education purpose it might not be the most ideal instrument. The returns do not take inflation into account. Another drawback is that if someone starts investing when their child is 9-years-old, they may not be able to amass enough wealth to meet the financial goals since they can withdraw only 50% of the savings when the girl turns 18.   
PPF: When it comes to long-term financial goals, PPF is the ideal investment instrument. It has a lock-in period of 15 years which is enough time to amass a wealth in order to fund your child's higher education. PPF also allows partial withdrawal option after completion of six years which makes it an even better option. It offer EEE tax benefits which means that the contribution, interest earned and maturity proceeds are all exempted from tax.

February 16, 2018 ,
The government, on Tuesday, clarified that no change in interest rate or tax policy on small savings schemes, which includes PPF and NSCs, is being made through the amendments proposed in Budget 2018. 

It has been proposed in the Budget to merge the Government Savings Certificates Act, 1959 and Public Provident Fund Act, 1968 with the Government Savings Banks Act, 1873. 

With a single Act, relevant provisions of the Government Savings Certificates (NSC) Act, 1959 and the Public Provident Fund Act, 1968 would stand subsumed in the new amended Act without compromising on any of the functional provision of the existing Act, says a press note issued today. 

As per the note, these changes are proposed in order to allow the government to easily allow premature closure in the schemes and provide other procedural benefits to depositors by simply issuing a notification. 

A ministry of finance tweet also stated, "All existing protections have been retained while consolidating PPF Act under the proposed Government Savings Promotion Act. No existing benefits to depositors are proposed to be taken away through this process." 

The government through the press note also makes it clear that there is no proposal to withdraw the provision of protection against the attachment of Public Provident Fund Account under any decree or order of any court in respect of any debt or liability incurred by the depositors and the existing and future depositors will continue to enjoy protection from the attachment under the amended umbrella Act as well. 

Apart from ensuring existing benefits, certain new benefits to the depositors have been proposed under the bill. These provisions which are proposed to be incorporated in the amended Act will add to the flexibility in operation of the Account under Small Savings Schemes. These are: 

i. Premature closure 

Existing: As per PPF Act, the PPF account can't be closed prematurely before completion of five financial years. If depositor wants to close PPF account before five years in exigencies, he can't close the account. 

Proposed: To make provisions for premature closure easier in respect of all schemes, provisions could now be made through specific scheme notification. The benefits of premature closure of Small Savings Schemes may now be introduced to deal with medical emergencies, higher education needs, etc. 

ii. Investment by minors 

Existing : Investment in Small Savings Schemes can be made by Guardian on behalf of minor(s) under the provisions made in the proposed bill Guardian may also be given associated rights and responsibilities. 

Proposed : There was no clear provision earlier regarding deposit by minors in the existing Acts. The provision has been made now to promote culture of savings among children. 

iii. Proceeds to heirs 

Existing: As per existing provisions of the Acts, if depositor dies and nomination exists, the outstanding balances will be paid to nominee(s). 

Proposed: Whereas, Supreme Court in its judgement stated that nominee(s) is merely empowered to collect the amounts as Trustee for the benefit of legal heirs. It was creating disputes between the provisions of the Acts and verdict of Supreme Court. Hence, right of nominees have now been more clearly defined. 

iv. Nomination 

Existing: In the existing Acts, there is no provision for nomination with regard to account opened in the name of minor. Further, existing Acts say that if account holder dies and there is no nomination and amount is more than prescribed limit, the amount shall be paid to legal heirs. In this case, the guardian has to obtain succession certificate. 

Proposed To remove this inconvenience, provisions for nomination with regard to account opened in the name of minors have been incorporated. Further the provision has been made that if the minor dies and there is no nomination, the balances shall be paid to guardian. 

v. Grievance redressal 

Existing: The existing Acts are silent about grievance redressal. 

Proposed The amended Act allows the Government to put in place mechanism for redressal of grievances and for amicable and expeditious settlement of disputes relating to Small Savings. 

vi. Other changes 

There were no clear provisions in all the three Acts for the operation of accounts in the name of physically infirm and differently abled persons. Provisions in this regard have now been made. 

Source:-The Economic Times

November 13, 2017 ,

The Public Provident Fund's (PPF) USP is its EEE tax status, i.e., at the time of investment, interest earned during the investment period, and the maturity proceeds are not taxable in the hands of the investor. 

However, the scheme does come with a long lock-in period of 15 years. Did you know that you can have liquidity in the form of loans and withdrawals from your PPF account? Before you rush to get a loan or withdraw from your PPF, you know that this facility is subject to certain conditions. 


Rules for taking a loan from a PPF account 

A subscriber is eligible to take a loan from PPF account from the third financial year but this facility is available only till the end of the sixth financial year. What this means is that if the account was opened during the financial year, say 2014-15, then you are eligible to get a loan from the financial year 2016-17 (April 1, 2016) and until 2019-20 (March 31, 2020). 

Do keep in mind that you cannot use the entire balance in the PPF to avail of the loan. The loan amount is capped at a maximum of 25 per cent of the balance available at the close of two years immediately preceding the year in which the loan is being applied for. 

Say, you apply for the loan any day during the FY 2017 -18 then you will be eligible for the 25 per cent of the balance in your account as on March 31, 2016. The balance will be the closing inclusive of interest credited to your account on March 31. 

Similarly, if you want to apply for a loan in the next financial year (2018-19), then the amount will be calculated on 25 per cent of the balance as on March 31, 2017. 

Interest rate charged on the loan taken from the PPF account is two per cent higher than the prevailing interest rate set by the government. If you visit your PPF branch today to apply for a loan, then the interest rate charged on the loan will be 9.8 per cent (2% + Interest rate for the quarter ending December 2017). 

Also, as the government announces the interest rate for every quarter, the interest rate charged on the loan, too, will vary accordingly. 

However, once the interest rate is set for the loan then the same rate will be applicable until the repayment period. 

Here are a few conditions you should know of once the loan is approved. 

*You will not be eligible for a new loan until the old loan has been paid off along with interest. 

*The loan taken from PPF has to be returned within 36 months. 

*The tenure of 36 months is calculated from the first day of the following month in which the loan is sanctioned. For example, if the loan was sanctioned on any day of July, then the tenure of 36 months of the loan starts from August. 

*In case the loan is not repaid within 36 months, then the applicable interest rate would be 6 per cent from the date the loan was sanctioned till the loan has been repaid. 

*In case the loan is not repaid within 36 months, then the applicable interest rate would be 6 per cent from the date the loan was sanctioned till the loan has been repaid. 

*In case any interest or part of it remains due but the principal is repaid, then the outstanding interest will be debited from the subscriber's account if it remains unpaid during the tenure of loan, i.e., 36 months. 

*The repayment of principal amount of must be done either as a lump-sum or in two or more monthly instalments. 

*Once the principal amount is paid, then only can you pay the interest on the loan amount. 

*You cannot make the repayment of interest in more than two monthly instalments. 

*Once the repayment of principal of loan starts, you can check the amount credited into your PPF account. However, the interest paid on the loan is accrued to the government. 
Read more at:


Rules of withdrawal from PPF 

You can withdraw from your PPF starting from the seventh year. So, if you go back to our above-mentioned example, for an account that was opened in 2014-15, the withdrawal facility will start from the April 1, 2020. 

There are limits on the amount of money that you can withdraw from the account. 

As per the PPF scheme rules, a person can withdraw lower of the following: 

a) 50 per cent of the balance available at the end of fourth year immediately preceding the year of withdrawal; or 

b) 50 per cent of the balance stood at the end of the preceding year 

For instance, if your PPF account was opened during the financial year 2011-12 and if you visit the branch any day during FY2017-18 to apply for a loan, then the amount you are eligible calculated as:

If there is any loan taken by the subscriber earlier which remains unpaid at the time of withdrawal, then it will be subtracted from the withdrawal amount he/she is eligible for. Further, this facility is available only once a year. 

Premature closure of PPF account 

As per earlier rules, a PPF account could not be closed before maturity of 15 years. However, the government, by amending the Public Provident Fund Act in 2016,has allowed premature closure if either of these conditions are met: 

a) The account must have completed five financial years and, 
b) The amount is required for the treatment of serious ailments or life-threatening disease of the account holder, spouse, dependent children or parents, or, 
c) For higher education of account holder or in case of a minor account holder. 

The subscriber will have to produce supporting documents as required. 

However, there is a catch. You will not get the full amount as shown in your account. As per the amended rules, if a person wishes to use the premature withdrawal facility, he or she will be subjected to one percent less interest rate from the interest rate as applicable to him in case he or she has not opted for the facility. 

This can be explained as follows for an account opened in the financial year 2011-12: 


From the above table it is clear that since you have opted for the premature withdrawal facility, the interest applicable for your deposits have been reduced by 1 per cent (from 8.60% to 7.60% in FY 2011-12 and so on). 

Had you not exercised the option of premature closure the balance shown in your account for the FY 2016-17 would be as: 

Source:-The Economic Times

March 29, 2017 , ,

Implementation of 25,000 intersol limit

  • Cheques accepted for subsequent deposits in Sub Office PPF / SSA accounts are lodged at HO in 0017 account of HO and posting is carried out at HOs after clearance, to facilitate posting, as per SB order 5 of 2016 intersol limit has been configured as 1.5lakhs on 07/01/2017 as a temporary solution. 
  • Now Patch is deployed for implementing intersol limits from today.
  • POs are instructed to follow the below procedure for posting high value PPF/SSA deposits.
  • Postmaster role users at HO are given access to CPDTM/CPWTM menus (for PPF/SSA accounts) for posting the subsequent deposits through cheques of sub offices.
  • The high value deposits for PPF/SSA will be done by Postmaster instead of PA handling Cheque clearance.
  • Sol's may be advised to handle the PPF/SSA transfer transactions (in respect of clearing for amounts greater than Rs.25000) from PM role id using CPDTM/CPWTM

March 20, 2017 , , , , , , , , ,
You are all aware that we are nearing the end of the financial year when interest calculation and posting are due for SB/PPF/NSS accounts.
Request you to please advise Post Offices to verify all the accounts which have been modified but verification is pending since interest posting for such accounts will fail resulting in complaints and tickets being raised for non-posting of interest.
Unverified accounts can be listed by respective offices using the HAFI menu; Following are the fields to be entered in HAFI for finding out unverified transactions:

Procedure to view the unverified accounts

Invoke the menu HAFI and enter the following details as mentioned belowEnter the SOL ID ____________Enter the Table Short Name as "GAM"In the Ref NO files "give two balnk spaces"Enter the General Ledger Subhead code as _________Enter the function code as "M"Select the Authorized option as "Not authorized" 
  • Following are the General Ledger Subhead codes 
SB - 30001
PPF - 33001
NSS87 -30021
NSS92 -30022
RD -30010
TD 1 YR - 30011
TD 2YR - 30012
TD 3YR - 30013
TD 5YR - 30014
TD EXCEPTION - 30015
MIS - 30016
MIS EXCEPTION - 30017
SCSS DEFENCE - 30018
SCSS VRS - 30019
SCSS GENERAL - 30020.
After entering all the details then click on Go then the system will show the list of unverified accounts as shown in the below figure.If any verification is pending in DOP Finalce application then the system will not calculate the interest for such unverifiedaccounts.So kindly verify immediately.Accounts thus identified have to verified to ensure interest is calculated and posted in them .

Please make sure no pending accounts are left unattended. SOLs are repsonsible, if the interest for the accounts are not posted due to pending account verification.

March 05, 2017 , , , , , , , , ,

Dear All,

Almost half of the tickets relating to account closure, is reported across circles. However it will comprehensible, by following 10 key notes pointed out by us, before heading for actual closure of all schemes:-

1) Whenever an account closure has to be made, always use trial closure for making a successful attempt prior to a proper closure.

2) The closure has to be initiated only in below mentioned menus. Also while initiating closure, feed either the Repayment A/c(0340) or S.B A/c of the Depositor other than Cash.

CRDCAAC menu for RD A/c Closure.
HCAAC menu for SB & PPF A/c Closure.
HCAACTD menu for MIS/TD/SCSS A/c Closure.
CSCCAAC menu for KVP/NSC A/c Closure.
CNSBCV menu for KVP/NSC Bulk Closure.

3) Sometimes the closure would've been attempted by the user, however the user may not verify the same resulting to various issues at a later date. Most of all, without even cancelling this account closure either the same day or at least the very next day, they will begin to modify and once again initiate closure. This needs to be attended rapidly.

4) Kindly note that whenever a Modification is made @ CIF/Account Level, either it has to be cancelled (by same user) or verified in respective menu. If not, either Int. will not get executed during EOD or those accounts cannot be closed due to such pending/unverified records.

5) Always check for any pending/unverified records in HAFI menu even before proceeding for account closure. This is also essential for proper submission of EOD.

6) Bonus (only for MIS), Int., & PMI (if applicable), will be generated only if the account closure is attempted in aforementioned closure menus for respective schemes. If SI (applicable only for RD) is given, please make sure that before closing RD accounts, this SI has been lifted from such RD A/c and verified at the same time.

7) For any emergency or investigative cases arising during account closure, kindly address those with concerned SBCO/D.O/R.O/C.O. Also refer the Rules, Regulations as laid down in various POSB Manual Volumes & SB Orders released from time to time. Status Quo has to be maintained for such cases.

8) It is always advisable to credit the closure proceeds to Savings Account of the Depositor benefiting the customer to withdraw as per norms/their wish. It is also necessary to make sure that CIF of the matured account is the same CIF as that of SB account. If not, kindly arrange to merge the same through HCCA and proceed for account closure.

9) While closing the accounts held in other SOL, it is necessary to obtain SOL transfer request along with SB 10(b), from the customer with fresh KYC. Thereafter proceed for SOL transfer through HACXFSOL & notify this to the concerned SOL through HO/SBCO. Even before closure, check whether the entries are up-to-date as listed in the above points.

10) There is a limitation for extending accounts beyond maturity as for eg: For RD/TD, there is automatic renewal. However for PPF and SCSS A/cs, please obtain the request from the depositor & extend manually through HCEXTN, HEXCDM menus respectively. As if PPF is extended, it cannot be closed for a further period of 5 years & if SCSS is extended, it cannot be closed within a year.

Based on these, we can reduce the manual errors to a large extent apart from technical limitations in Finacle. It is hereby kindly requestedto address these to associating all 23,199 Live SOL's till date by any good means of communication. This may be shared to all concerned for future reference as well.


Thanks and Regards,
Hariharan S
DOP Service Desk,
CEPT, Chennai - 02

March 02, 2017 , , , , , , , , ,

1) Whenever an account closure has to be made, always use trial closure for making a successful attempt prior to a proper closure.

2) The closure has to be initiated only in below mentioned menus. Also while initiating closure, feed either the Repayment A/c (0340) or S.B A/c of the Depositor other than Cash.
CRDCAAC menu for RD A/c Closure.
HCAAC menu for SB & PPF A/c Closure.
HCAACTD menu for MIS/TD/SCSS A/c Closure.
CSCCAAC menu for KVP/NSC A/c Closure. And CNSBCV menu for KVP/NSCBulk Closure.
3) Sometimes the closure would've been attempted by the user, however the user may not verify the same resulting to various issues at a later date. Most of all, without even cancelling this account closure either the same day or at least the very next day, they will begin to modify and once again initiate closure. This needs to be attended rapidly.

4) Kindly note that whenever a Modification is made @ CIF/Account Level, either it has to be cancelled (by same user) or verified in respective menu. If not, either Int. will not get executed during EOD or those accounts cannot be closed due to such pending/unverified records.

5) Always check for any pending/unverified records in HAFI menu even before proceeding for account closure. This is also essential for proper submission of EOD.

6) Bonus (only for MIS), Int., & PMI (if applicable), will be generated only if the account closure is attempted in aforementioned closure menus for respective schemes. If SI (applicable only for RD) is given, please make sure that before closing RD accounts, this SI has been lifted from such RD A/c and verified at the same time.

7) For any emergency or investigative cases arising during account closure, kindly address those with concerned SBCO/D.O/R.O/C.O. Also refer the Rules, Regulations as laid down in various POSB Manual Volumes & SB Orders released from time to time. Status Quo has to be maintained for such cases.

8) It is always advisable to credit the closure proceeds to Savings Account of the Depositor benefiting the customer to withdraw as per norms/their wish. It is also necessary to make sure that CIF of the matured account is the same CIF as that of SB account. If not, kindly arrange to merge the same through HCCA and proceed for account closure.

9) While closing the accounts held in other SOL, it is necessary to obtain SOL transfer request along with SB 10(b), from the customer with fresh KYC. Thereafter proceed for SOL transfer through HACXFSOL & notify this to the concerned SOL through HO/SBCO. Even before closure, check whether the entries are up-to-date as listed in the above points. 

10) There is a limitation for extending accounts beyond maturity as for eg: For RD/TD, there is automatic renewal. However for PPF and SCSS A/cs, please obtain the request from the depositor & extend manually through HCEXTN, HEXCDM menus respectively. As if PPF is extended, it cannot be closed for a further period of 5 years & if SCSS is extended, it cannot be closed within a year.

Based on these, we can reduce the manual errors to a large extent apart from technical limitations in Finacle. It is hereby kindly requested to address these to associating all 23,199 Live SOL's till date by any good means of communication. This may be shared to all concerned for future reference as well. 
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