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Home Financial Services Post Office Savings Schemes

Post Office Savings Schemes

Minimum Amount Interest for opening of payable, account and Rates, maximum balance Periodicity that can be etc. retained 4.0% per Minimum INR 20/annum on for opening. individual/ joint accounts. Salient features including Tax Rebate Account can be opened by cash only. Minimum balance to be maintained in a non-cheque facility account is INR 50/-. Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained. Cheque facility can be taken in an existing account also. Interest earned is Tax

Scheme Post Office Savings Account

Free up to INR 3500/- per year in single and INR 7000/- in Joint account up to 2011-12 and up to INR 10,000/- per year either in single or joint account for 2012-13. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. One account can be opened in one post office Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Joint account can be opened by two or three adults. At least one transaction of deposit or withdrawal in

5-Year Post Office Recurring Deposit Account

From 1.4.2013, interest rates are as follows:8.3% per annum (quarterly compounded) On maturity INR 10/account fetches INR 744.53. Can be continued for another 5 years on year to year basis.

Minimum INR 10/per month or any amount in multiples of INR 5/-. No maximum limit.

three financial years is necessary to keep the account active. Single account can be converted into Joint and Vice Versa. Minor after attaining majority has to apply for conversion of the account in his name. Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of presentation of cheque. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. Any number of accounts can be opened in any post office. Account can be opened in the name of

minor and a minor of 10 years and above age can open and operate the account. Joint account can be opened by two adults. Subsequent deposit can be made up to 15thday of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month. If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within

Post Office Time Deposit Account

this period, no further deposit can be made. There is rebate on advance deposit of at least 6 installments. Single account can be converted into Joint and Vice Versa. Minor after attaining majority has to apply for conversion of the account in his name. One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/denomination in case of death of depositor subject to fulfillment of certain conditions. Interest Minimum INR 200/- Account payable and in multiple may be opened annually but thereof. No by individual. calculated maximum limit. Account quarterly. can be opened From by cash/cheque 1.4.2013, and in case of interest rates cheque the date

are as follows:Period Rate 1yr.A/c 8.20% 2yr.A/c 8.20% 3yr.A/c 8.30% 5yr.A/c 8.40%

of realization of cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. Any number of accounts can be opened in any post office. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Joint account can be opened by two adults. Single account can be converted into Joint and Vice Versa. Minor after attaining majority has to apply for conversion of

Post Office Monthly Income Account Scheme

From 1.4.2013, interest rates are as follows:8.40% per annum payable monthly.

In multiples of INR 1500/-. Maximum investment limit is INR 4.5 lakhs in single account and INR 9 lakhs in joint account. An individual can invest maximum INR 4.5 lakh in MIS (including his share in joint accounts) For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.

the account in his name. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year with interest @post office savings account. The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. Account may be opened by individual. Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from

one post office to another. Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account. Single account can be converted into Joint and Vice Versa. Minor after attaining majority has to apply for conversion of the account in his name. Maturity period is 5 years

Senior Citizen Savings Scheme

From 1.4.2013, interest rates are as follows:-

There shall be only one deposit in the account in multiple of INR.1000/-

from 1.12.2011. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or ECS. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07 and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011. An individual of the Age of 60 years or more may

9.20% per maximum not open the annum, exceeding INR 15 account. payable from lakh. An the date of individual of the deposit of 31st age of 55 years March/30th or more but less Sept/31st than 60 years December in who has retired the first on instance & superannuation thereafter, or under VRS interest shall be can also open payable on account subject 31st March, to the condition 30th June, 30th that the account Sept and 31st is opened within December. one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits. Maturity period is 5 years. A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife). Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by cheque only. In case of

cheque, the date of realization of cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. Joint account can be opened with spouse only and first depositor in Joint account is the investor. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money

Order. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest (Discount means deduction from the deposit.). After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction. TDS is deducted at source on interest if the interest amount is more than INR 10,000/p.a. Investment under this scheme qualifies for the benefit of

15 year Public Provident Fund Account

From 1.4.2013, interest rates are as follows:8.70% per annum (compounded yearly).

Minimum INR. 500/Maximum INR. 1,00,000/- in a financial year. Deposits can be made in lump-sum or in 12 installments.

Section 80C of the Income Tax Act, 1961 from 1.4.2007. An individual can open account with INR 5/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,00,000/ Joint account cannot be opened. Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. The subscriber can open another account in the name of minors but subject to maximum

investment limit by adding balance in all accounts. Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on. Maturity value can be retained without extension and without further deposits also. Premature closure is not allowed before 15 years. Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely taxfree. Withdrawal is permissible every year from 7th financial year from the year of opening account.. Loan facility available from 3rd financial year. No attachment under court decree order.

Kisan Vikas Patra National Savings Certificates (NSC)

Discontinued from 01.12.2011 From 1.4.2013, Minimum INR. interest rates 100/- No maximum A single are as follows:- limit available in holder type denominations of certificate can INR. 100/-, 500/-, be purchased 8.5% 1000/-, 5000/- & by, an adult for compounded INR. 10,000/-. himself or on six monthly but behalf of a payable at minor or by a maturity. INR. minor. 100/- grows to Deposits INR 151.62 qualify for tax after 5 years. rebate under Sec. 80C of IT 8.80% Act. compounded The interest six monthly but accruing payable at annually but maturity. INR deemed to be 100/- grows to reinvested INR 236.60 under Section after 10 years. 80C of IT Act.
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Savings Account

Any individual can open an account. Cheque facility available. Group Account, Institutional Account, other Accounts like Security Deposit account & Official Capacity account are not permissible Rate of interest 4% per annum

Recurring Deposit Account

Any individual (a single adult or two adults jointly) can open an account. Advance Deposits earn rebate. Four defaults are allowed. Rate of interest 8.30% Maturity value of a 5 Years RD account opened on or after 1.4.2013 with monthly deposit of INR.10/- shall be INR.744.53. Defaults can be paid within two months. Part withdrawal facility available. Premature closure allowed after three years. Pay Roll Savings Scheme is also available for employees of various Establishments. Type of Account Minimum Deposit INR. 10/- and in multiples of INR. 5/Individual Account Interest Calculator thereafter No limit. Maximum Deposit

Time Deposit Account

Any individual (a single adult or two adults jointly) can open an account. Group Accounts, Institutional Accounts and Misc. account not permissible. Trust, Regimental Fund or Welfare Fund not permissible to invest. 1 Year, 2 Year, 3 Year and 5 Year Time Deposit can be opened. In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable. In case of premature closure of 2 year, 3 year or 5 year account on or after 01.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate specified for a period of deposit of 1 year, 2 year or 3 years as mentioned in

the concerned table given under Rule 7 of Post office Time Deposit Rules. Rate of interest - 8.20%, 8.20%, 8.30%, 8.40% compounded quarterly for 1,2,3 & 5 years TD account respectively. The investment in the case of 5 years TD qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. Type of Account Minimum Deposit INR.200/- and in multiples of INR. 1,2,3 & 5 Year TD 200/- thereafter No limit. Maximum Deposit

Monthly Income Scheme (MIS) Account

Safe & sure way to get a regular monthly income. Specially suited for retired employees/ Senior Citizens or any one with high sum for investment. Rate of interest 8.40%. Maturity Period - Five Years. No Bonus on Maturity w.e.f. 01.12.2011. Auto credit facility to SB Account. Type of Account Single Joint Minimum limit INR 1500/INR 1500/Maximum limit INR 4.5 lakhs INR 9 lakhs

Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account. Interest Calculator Monthly Income Scheme Rules

Public Provident Fund Account

Ideal investment option for both salaried as well as self employed classes. Non-Resident Indians (NRIs) are not eligible. Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act. The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point seven per cent (8.70%) per annum. Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011. Withdrawal permitted from 6th financial year. Free from court attachment. An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons. Type of Account Public Provident Fund(Individual INR. 500/- in a financial year INR. 1,00,000/- in a financial year Minimum limit Maximum limit

account on his behalf or on behalf of minor of whom he is the guardian)

National Savings Certificates (NSC)

NSC VIII Issue

Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses. No maximum limit for investment. No Tax deduction at source. Certificates can be kept as collateral security to get loan from banks. Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act. Trust and HUF cannot invest. Rate of interest 8.50%. Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 151.62 after 5 years.

NSC IX Issue No maximum limit for investment. INR. 100/- grows to INR 234.35 after 10 years. Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/. A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Rate of interest 8.80%. Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 236.60 after 10 years. Buy National Savings Certificates (NSCs) every month for Five years Re-invest on maturity and relax - On retirement it will fetch you monthly pension as the NSC matures.

Senior Citizen Savings Scheme (SCSS) Account

A new avenue of investment and return for Senior Citizen. The account may be opened by an individual, 1. 2. Who has attained age of 60 years or above on the date of opening of the account. Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.

3. No age limit for the retired personnel of Defence services provided they fulfill other specified conditions. The account may be opened in individual capacity or jointly with spouse. Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account. The individual may open one or more account in the multiple of INR.1000/-, subject to a maximum limit of INR.15 lakh. No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years. Premature closure of account is permitted 1. After one year but before 2 years on deduction of 1 % of the deposit. 2. After 2 years but before date of maturity on deduction of 1% of the deposit. Premature closure allowed after three years. In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest. Interest @ 9.20% per annum from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office. Interest rounded off to the nearest multiple of rupee one. Post Maturity Interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity. Nomination facility is available in the Scheme. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS) are the best for Senior Citizens who desire monthly/quarterly interest. Invest in MIS / SCSS and transfer interest into RD account through SB account through written request and earn a combined interest of 10.5 % (approx.). This is the safest investment option for the Senior Citizens.

PoPostal Life Insurance (PLI) was introduced on 1st February 1884 with the express approval of the Secretary of
State (for India) to Her Majesty, the Queen Empress of India. It was essentially a scheme of State Insurance mooted by the then Director General of Post Offices, Mr. F.R. Hogg in 1881 as a welfare scheme for the benefit of Postal

employees and later extended to the employees of Telegraph department in 1888. In 1894, PLI extended insurance cover to female employees of P & T Department at a time when no other insurance company covered female lives. It is the oldest Life insurer in this country. In the beginning, the upper limit of life insurance was only Rs 4000/- which has now increased to Rs 10 lacs (Rupees Ten Lacs) for all schemes combined - Endowment Assurance and Whole Life Assurance. Over the years, PLI has grown substantially from a few hundred policies in 1884 to 42,83,302 policies as on 31.03.2010. It now covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies etc. PLI also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts. PLI is an exempted insurer under Section 118 (c) of the Insurance Act of 1938. It is also exempted under Section 44 (d) of LIC Act, 1956.

PLI offers 7 (Seven) types of plans: 1. 2. 3. 4. 5. 6. 7. Whole Life Assurance (SURAKSHA) Convertible Whole Life Assurance (SUVIDHA) Endowment Assurance (SANTOSH) Anticipated Endowment Assurance (SUMANGAL) Joint Life Assurance (YUGAL SURAKSHA) Scheme for Physically handicapped persons Children Policy

WHOLE LIFE ASSURANCE: This is a scheme where the assured amount with accrued bonus is payable to the assignee, nominee or the legal heir after death of the insurant. Minimum Age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. The policy can be converted into an Endowment Assurance Policy after completion of one year and before 57 years of age of the insurant. Loan facility is available after completion of four years and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan. ENDOWMENT ASSURANCE: Under this scheme, the proponent is given an assurance to the extent of the Sum Assured and accrued bonus till he/she attains the pre-determined age of maturity. In case of unexpected death of the insurant, the assignee, nominee or the legal heir is paid the full Sum Assured together with the accrued bonus. The minimum age at entry is 19 years and the maximum Age at entry is 55 years. The minimum Sum Assured is Rs 20,000 and the maximum Sum Assured is Rs 10 lacs. Loan facility is available and policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

CONVERTIBLE WHOLE LIFE ASSURANCE: The features of this scheme are more or less same as Endowment assurance. Policy can be converted into Endowment Assurance after five years. Age on the date of conversion must not exceed 55 years. If option for conversion is not exercised within 6 years, the policy will be treated as Whole Life Assurance. Loan facility is available. The policy can also be surrendered after completion of three years. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan. The policy is not eligible for bonus if surrendered or assigned for loan before completion of 5 years. Proportionate bonus on the reduced sum assured is accrued if the policy is surrendered or assigned for loan.

ANTICIPATED ENDOWMENT ASSURANCE: It is a Money Back Policy with maximum Sum Assured of Rs 5 lacs. Best suited to those who need periodical returns. Survival benefit is paid to the insurant periodically. Two types of policies are available - 15 years term and 20 years term. For the 15 years term policy, the benefits are paid after 6 years (20%), 9 years (20%), 12 years (20%) and 15 years (40% and the accrued bonus). For the 20 years term policy, the benefits are paid after 8 years (20%), 12 years (20%), 16 years (20%) and 20 years (40% and the accrued bonus). Such payments will not be taken into consideration in the event of unexpected death of the insurant and the full sum assured with accrued bonus is payable to the assignee or legal heir.

JOINT LIFE ASSURRANCE: It is a joint-life Endowment Assurance in which one of the spouses should be eligible for PLI policies. Life insurance coverage is provided to both the spouses to the extent of sum assured with accrued bonus with only one premium. All other features are same as an Endowment policy. All the above schemes have compulsory medical examination. For the non-medical policy of any category (except AEA and Joint Life Assurance for which Medical Examination is compulsory), the maximum Sum Assured is Rs 1 lac.

LIMITS OF SUM ASSURED IN POSTAL LIFE INSURANCE: Any person who is eligible to the benefit of Post Office Life Insurance Fund under Rule 6, may effect an insurance-Whole Life Assurance, Endowment Assurance, Convertible Whole Assurance, Anticipated Endowment Assurance and Yugal Suraksha Policy or all of them on his life for a sum not less than Rs. 20,000 in each class but not more than an aggregate of Rs. Twenty Lac (Rs. 20,00,000/-) in respect of one class/all classes of insurance policy (s) taken together. The value of policy shall be taken in multiples of Rs. 10,000/- after minimum limit of Rs.20,000/- i.e. Rs. 20,000/-, Rs.30,000/-,Rs. 50,000/- and so on.

SCHEME FOR PHYSICALLY HANDICAPPED PERSONS: The maximum limit of Insurance for Physically Handicapped persons in PLI is the same as others and he/she can take any one of the plans. Medical examination is compulsory under this scheme in order to determine the exact nature and extent of their handicap and its bearing on the life being insured. Depending upon the nature and extent of handicap, normal or a slightly higher premium is charged.

CHILDREN POLICY The Department has introduced Children Policy under PLI/RPLI, with effect form 20th Jan 2006. The salient features of this scheme are as under:-

The Scheme is envisaged to provide Insurance cover to the children of PLI/RPLI policy holders. Maximum two children in family will be eligible to take children policy. Children between the age of 5 and 20 years are eligible and maximum sum assured is Rs 1 lakh or equivalent to the sum assured of the main policy holder which ever is less. The main policy holder should not have attained the age of 45 years. No premium is required to be paid on the children policy on the death of the main policy holder and full sum assured with the accrued bonus shall be paid to the child after the completion of the term of the children policy. On the death of the child/children, full sum assured with the accrued bonus shall be payable to the main policy holder.

Main policy holder shall be responsible for payments for the Children Policy. No loan shall be admissible on Children Policy. However, the policy shall have facility for making it paid up provided the premia are paid continuously for 5 years. No Medical examination of the Child is necessary. However, the child should be healthy on the day of proposal and the risk shall start from the date of acceptance of proposal. The policy shall attract bonus at the rate applicable to Endowment Policy. The POIF Rules amended from time to time shall be applicable to Children Policy.

PLI is the only insurer in the Indian Life Insurance market today, which gives the highest return (bonus) with the lowest premium charged for any product in the market. A PLI/RPLI policy holder also gets following facilities :

Change of nomination. The insurant can take loan by pledging his/her policy to Heads of the Circle/Region on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also available. Assignment of Policy to any Financial Institution for taking loan. Revival of his/her lapsed policy. Policy lapses after 6 unpaid premiums if it remained in force for less than 3 years and after 12 unpaid premiums if it remained in force for more than 3 years. Issue of Duplicate Policy Bond in case of the original Policy Bond is lost, burnt/torn/mutilation. Conversion from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.

Rural Postal Life Insurance (RPLI) came into being as a sequel to the recommendations of the Official Committee for Reforms in the Insurance Sector (Malhotra Committee). The Committee had observed in 1993 that only 22% of the insurable population in this country had been insured; life insurance funds accounted for only 10% of the gross household savings. The Committee had observed: The Committee understands that Rural Branch Postmasters who enjoy a position of trust in the community have the capacity to canvass life insurance business within their respective areas.. The Government accepted the recommendations of Malhotra Committee and allowed Postal Life Insurance to extend its coverage to the rural areas to transact life insurance business with effect from 24.3.1995, mainly because of the vast network of Post Offices in the rural areas and low cost of operations. The prime objective of the scheme is to provide insurance cover to the rural public in general and to benefit weaker sections and women workers of rural areas in particular and also to spread insurance awareness among the rural population. As on 31.03.2010, we have 99,25,103 RPLI policies. RPLI offers following types of plans: 1. 2. 3. 4. 5. 6. Whole Life Assurance ( GRAMA SURAKSHA) Convertible Whole Life Assurance (GRAMA SUVIDHA) Endowment Assurance ( GRAMA SANTOSH) Anticipated Endowment Assurance (GRAMA SUMANGAL) GRAM PRIYA Scheme for Physically handicapped persons

The salient features of the Whole Life, Endowment, Convertible Whole Life and Anticipated Endowment Schemes of RPLI are same as the corresponding schemes of PLI except that the minimum Sum Assured is Rs.10,000 and the maximum Sum Assured is Rs.3 lac. The maximum age limit of entry is 55 years in case of Whole Life and Endowment Assurance but 45 years in case of other plans. All the schemes have compulsory medical examination. For the non-medical policies, the maximum limit of Sum Assured is Rs.25,000/-, and maximum age is 35 years. In case of Non-standard age proof for Rural PLI policies, the maximum age limit is 45 years.

PLI is the only insurer in the Indian Life Insurance market today which gives the highest return (bonus) with the lowest premium charged for any product in the market. A PLI/RPLI policy holder may also get following facilities :-

Change of nomination. The insurant can take loan by pledging his/her policy to Heads of the Circle on behalf of President of India, provided the policy has completed 3 years in case of Endowment Assurance and 4 years in case of Whole Life Assurance. The facility of assignment is also available. Assignment of Policy to any Financial Institution for taking loan. Revival of his/her lapsed policy. Policy lapses after 6 unpaid premia if it remained in force for less than 3 years and after 12 unpaid premia if it remained in force for more than 3 years. Issue of Duplicate Policy Bond in case the original Policy Bond is lost, burnt or torn/mutilated. Conversion from Whole Life Assurance to Endowment Assurance and from Endowment Assurance to other Endowment Assurance as per rules.

Money Remittance Services

Remittances are a growing and an important area for India Post. India Post offers various remittance services to meet the demands of various sections of the society. The remittance services of India Post are available for both domestic and international locations. Money Order Electronic Money Order Instant Money Order MO Videsh International Money Transfer Service Electronic Clearance Services (ECS) Money gram International Money Transfer are the remittance services offered by India Post. India Post has introduced web-enabled remittances to offer faster services. Money Order: This is a domestic money transfer facility through post office. Money send through money order is paid at the door-step of the payee and this service is available in all post offices . Maximum amount which can be remitted through a single money order is Rs.5000/-. Remitter can pay the amount in cash or cheque at the booking office and the charges for the service is 5% of the value of money to be transmitted. Remitter gets acknowledgement signed by the payee.there is a provision for sending short communication also along with the money order.

Electronic Money Order (eMO): Introduced on 10.10.2008. eMO system aims to simplify the transmission process of money orders by ensuring quick and secure electronic transmission. Time taken for Transmission is very less & amount is paid within a day of booking . the amount of money order is paid in cash at the door step of the payee. Facility for remitting money from one to one, one to many and many to one is available under this service. eMO can be booked at authorized POs, but paid through all deli very POs in the country. commission for eMO is same as applicable to money order. The eMOs can be tracked through Indiapost website. Instant Money Order (iMO): India Post provides instant Money Order service, which is Instant, Safe, Reliable & Convenient. Amount from Rs.1000/- to Rs.50000/- can be remitted through designated iMO Post Offices. It is an instant web based money transfer service. Remitter has to fill-up prescribed form & should produce valid photo identity. Money Order Commission varies based on the amount of remittance. There are 33 standard messages for selection by the remitter. Payee has to visit the post office, fill up the prescribed form and produce the identity proof to receive the money. Amount recieved can also be credited to the savings bank account of the payee. MO Videsh: This is an international remittance service offered by Indiapost to most foreign destinations. Outward remittance is payable to beneficiaries by crediting the payment to the bank account of beneficieries in the destination countries. Each outward remittance shall not exceed 5000 USD & maximum 12 outward remittances are allowed in a year. This facility is available in all computerized post offices. The commission for MO Videsh vary with the amount to be transferred. International Money Transfer Service: Indiapost is also offering inward international money transfer through collaboration with western union money transfer and Money gram. The service is safe, fast & reliable. It is a quick and easy way of transferring personal remittance from abroad to beneficiaries in India. Money can be received from 195 countries through identified post offices. Recipients can receive money in minutes after the remitter remits money. A maximum of 2500 USD can be recieved at a time. 12 transactions can be received by a single beneficiary in a calendar year. Amount upto Rs.50000/- in cash and more than that in cheque or credited to savings accounts in PO. Recipient to provide sufficient information to establish his identity and proof of residence. The facility for receipt of WUMT is available in 7212 Post Offices and money gram facility is available in 500 post offices. Electronic Clearance Service (ECS): ECS scheme provides alternative method for bulk payment, payment of interest/salary/pension/dividend. The scheme was introduced on 9th August 2003. ECS is offered by India Post in c/w payment of monthly interest in Monthly Income Scheme. Under ECS, depositors of MIS accounts get their interest automatically transferred and credited into their accounts on due dates at designated Bank of their choice. Currently the service is available in the Department of Posts 15 RBI locations and 21 SBI locations.

Mutual Funds
Distribution of Mutual Funds and Securities: The Post Office has traditionally been a distributor of financial services, from money orders to banking services. The Post Office Savings Bank is the largest retail bank in the country, operating from over 1,50,000 branches. With an objective to leverage the strength of the postal network and skills Department of Posts had started retailing mutual funds and bonds. On 22nd January 2001, India Post in partnership with IDBI-Principal, launched a scheme for distribution of mutual funds through post offices. A pilot project was started from the four cities of Delhi, Mumbai, Kolkata and Patna. Thereafter from 15th June 2001 onwards, the scheme was extended to cover post offices in all major capital and other cities all across the country. At present select schemes of Principal, SBI, UTI, Franklin Templeton and Reliance Mutual Fund are retailed through designated post offices in the country. Easy steps for investing through the Post Office: 1. At each designated post office one counter (AMFI qualified personnel) has been earmarked (usually on a nonexclusive basis) to receive the Mutual Fund applications;

2. An investor can approach the designated post office counters or the concerned postmaster for application forms and literature on the types of fund schemes available through the post office; 3. Thereafter he can hand the application forms duly filled along with requisite amount in the form of a demand draft/cheque to the counter staff. No cash will be accepted; 4. The counters accept the application forms as per the cut off time prescribed by the AMCs for accepting the applications for their schemes in the particular post office.

Electronic International Money Order Service

International Money remittance between people of India and the UAE will become easier after India Post and Emirates Post, UAE signed an agreement to launch Electronic International Money Orders through the postal network, using secure International Financial System (IFS) of the UPU (Universal Postal Union) from February, 2008. An agreement facilitating the system was signed in Dubai on 2nd January, 2008 by Director General of India Post IMG Khan and Chief Executive Officer of Emirates Post Ibrahim Karam Ali Bin Karam. In the initial phase the service will be offered from UAE to India through all Head Post Offices in Delhi, Mumbai, Chennai, Kolkata and Kerala covering around 97 Head Post Offices and over 2400 Sub Post Offices. Residents in UAE, especially migrant workers can now transfer money speedily on very economical rates to any location under these Post Offices through India Post and these locations will be extended throughout the country soon covering the largest Postal network in the world. Through this system, the long-felt need of Indian expatriates for a cost-effective electronic Money Order facility will be fulfilled. As India Posts network encompasses the length and breadth of the country, it is in a position to provide a service that is unmatched by private operators. Customers sending money to India through Emirates Post Offices will have two options. They can either have the money delivered to the addressees residence, or ask the addressee to collect the money from any authorized Post Office in India. The latter option is likely to be offered in phase-II. In India, the electronic Money Orders payable at Post Office counters will be delivered the same day at main Post Offices. In the case of Money Orders payable at addresses destination, delivery will be within two days through the IFS network. Outside the IFS network, delivery will take place within five days. If the money is sent from India to the UAE, the amount can be collected the same day at Emirates Post Offices. The agreement stipulates that a single Money Order issued by Emirates Post for payment in India shall not exceed 2,500 US Dollars or its equivalent. It also states that only 12 Money Orders addressed to one beneficiary will be allowed in a calendar year. Amounts upto INR 20,000 will be paid at payees address through Postman in cash. Amounts more than INR 20,000 and upto INR 50,000 will be paid in cash across the Post Office counter, and those exceeding INR 50,000 will be payable by cheque.

Forex Services
High growth Indian economy coupled with globalisation has resulted in thousands of Indians going abroad for travel, studies and business. Simultaneously, there is a huge inflow of foreign tourists visiting India on vocation and

business. This has resulted in the need for a reliable and quality service provider for purchase and sale of Foreign Exchange. Each one of them requires reliable, affordable and convenient Forex services. At many places, there is no Bank or other facilities to avail foreign exchange. India Post, with a network of more than 155,000 post offices, is best poised to offer Forex services in an efficient and economical manner. Now India Post, in association with HDFC Bank, provides Forex services through select Post Offices across India. HDFC Bank is one of the leading providers of Forex services and through this association, India Post brings to the customers a range of Forex services in a professional and efficient manner. Goals and objectives: To make Forex services available across India as a reliable and affordable product for the custo mers at a competitive price, through the vast distribution network of India Post. To provide convenience to the customers by making Forex services available at a large number of locations covering urban as well as rural areas, where banks and exchange companies do not offer foreign exchange service or do not have the presence. Products & Services: Given below is the range of Forex services Following offered from Post office counters. Forex services are subject to regulations of Reserve Bank of India. Service Foreign currency notes (FCN) Travellers Cheques (TC) Store Value card (SVC) Arrangement for Demand Drafts (DD) Arrangement for Telegraphic/ wire transfers (TT/ WT) 1. Foreign Currency Notes Scope Buying and selling Buying and selling Selling Selling Selling