Are Your PPF, NSC Accounts 'Inoperative' After Maturity? Here's What You Can Do

When your PPF, NSC, and other minor saving plans stop functioning, it signifies that the accounts have reached maturity without being extended. According to the most recent office directive from the Department of Post, part of the Ministry of Communication, accounts for small savings plans are frozen after three years of maturity but are not closed. The goal of the order is to strengthen the CBS system, and little modifications must be made over time to guarantee that the risk of misappropriation in CBS activities is kept to a minimum.

So, what should you do when your PPF or NSC account becomes inoperative after maturity? In this article, we will help you learn the procedure for the same.

Any account holder whose account or certificate is discovered to be frozen with the freeze code "INOP: - Inactive for more than 3 years" should submit a request for closure along with the certificate or passbook at any post office. Following are the papers that one needs to submit:

 1. Passbook

2. KYC papers (a mobile number, PAN card details, AADHAR or address proof according to Rule 6 of the Government Savings Incentive General Rules – 2018)

3. Account Closure Form (SB – 7A) - For the purpose of crediting the maturity value into the account holder's savings account, the account holder should additionally be asked to submit an account closure form, a copy of the passbook, the PO Savings Account number, or bank account data. To avoid having to go back to the post office and have the maturity amount deposited to the account holder's PO Savings Account or bank account, the depositor/s signature must be acquired on the acquittance portion of the account closure form.

Please note: Similar documentation will be acquired from account holders whose accounts are at the Head Post Office, and the procedure outlined below will be followed.

1. The designated PA and APM (SB) must confirm the account information of the papers received with Finacle after receiving a case for unfreezing and closure at the Head Post Office. Following confirmation of the case's validity, the account or certificate in question must be unfrozen under the supervision of two HO Supervisors.

2.   The APM (SB) will verify the closure of the account after the Counter PA closes it.

3.   A different register for the closure of accounts marked as "INOP Inoperative" for more than 3 years will be kept in the Head Post Office.

4.   The APM(SB) will deliver a register to the Head Postmaster for review after recording the closure information in the aforementioned register.

5.   Passbook, KYC document, Account Closure Form, Cancel Cheque, and a copy of the Passbook must then be sent to the relevant SBCO together with additional vouchers.

6.   The SBCO PA and Supervisor will review the account information, the account closure form, and the account holder's KYC documents while reviewing the vouchers of closed accounts that were determined to be INOP-Inoperative for more than 3 years. The voucher will include copies of the same documents. If a fault is discovered, objections must be filed in accordance with the established procedure.

7.   All visiting/inspecting officers must always check the register, "REGISTER FOR CLOSURE OF account classified as "INOP - Inoperative for more than 3 years," while they are visiting/inspecting the Head Post Offices and ensure that the method outlined above is rigorously followed.

8.   When accounts are unfrozen for reasons other than "INOP-inoperative for more than 3 years," CEPT must disclose this information to circle CPC (CBS) every two weeks.

9.   In a week, the circle must have the report validated in accordance with the "REGISTER FOR CLOSURE OF account classified as "INOP-Inoperative for more than 3 years" filed at the Head Post Office, and it must take the necessary action if any discrepancies are discovered.