SB Order No. 11/2026 – Revised SOP for Interest Adjustment via HIARM Menu in Finacle CBS

 FS‑10/8/2022‑FS‑DOP 

Government of India 

Ministry of Communications 

Department of Posts (Financial Services Division)

Dak Bhawan, New Delhi – 110001 Dated: 29.09.2026

To: 

All Head of Circles

Subject: Revised Procedure for Interest Adjustment through HIARM Menu in Finacle CBS

Kindly refer to SB Order No. 09/2022 dated 02.06.2022, SB Order No. 03/2024 dated 14.05.2024 and Rule 61 and Para 5 of Appendix XVI of the POSB CBS Manual (Corrected up to 31.12.2021) regarding the operation of the HIARM (Interest Adjustment Register Maintenance) menu in Finacle CBS for carrying out interest adjustment in POSA, PPF, SSA, NSS‑87, NSS‑92, MIS or SCSS scheme.

The HIARM menu is used for processing interest adjustments in the above POSB schemes based on the sanction accorded by the competent authority. Under the existing procedure, the interest adjustment entries created by the SBCO Supervisor are not subjected to a second‑level verification in the system and they are auto verified in the system.

With a view to strengthening internal controls, enhancing accountability, and preventing unauthorized or erroneous interest adjustments, a second level validation has been introduced in the HIARM menu. The revised functionality also incorporates enhanced system validations, jurisdiction‑based access controls i.e., HO SOL and CPC SOL, and monitoring reports. Accordingly, a consolidated Standard Operating Procedure (SOP) for operation of the HIARM menu is enclosed herewith.

The procedure prescribed in the enclosed SOP shall henceforth be followed for processing interest adjustment cases through the HIARM menu. Accordingly, the procedure for the operation of the HIARM menu under Rule 61 and Para 5 of Appendix XVI of the POSB CBS Manual (Corrected up to 31.12.2021) stands modified. This SOP shall supersede all earlier instructions on the operation of the HIARM menu by SBCO to the extent covered by this SOP.

The Circles shall ensure that this SOP is circulated to all concerned offices for information, guidance and necessary action.

This issues with the approval of the Competent Authority. 

(Devender Kumar Sharma, Assistant Director SB‑II)

Download SB Order 11/2026 dated 29.09.2026 in PDF

SB Order No.10/2026 | HRMS Payments through POSB Interface – Revised Accounting Procedure w.e.f. 29.07.2026

 FS‑16/2/2024‑FS‑DOP 

Government of India 

Ministry of Communications 

Department of Posts (Financial Services Division) 

Dak Bhawan, New Delhi – 110001 

Dated: 03.09.2026

To 

All the Head of Circles/Regions

Subject: HRMS Payments through POSB Interface – Revised Accounting Procedure w.e.f. 29.07.2026.

Sir/Madam,

Kindly refer to SB Order No. 12/2025 dated 15.09.2025 regarding the accounting of POSB transactions.

In partial modification of Para 6, Sl. No. 19 of the aforesaid SB Order, the accounting procedure for HRMS (Salary/Pension/Claims) payments processed through the POSB interface has been revised with effect from 29.07.2026.

Accordingly, in the Daily Transaction Report (DTR) of the concerned Post Office:

• HRMS transactions shall be accounted as HRMS Payment under the relevant Budget Account Code on the payment side and RSAO HR to CBS Receipts on the receipt side.
• The corresponding POSB Credits and RSAO HR to CBS Payments shall be accounted centrally in the books of CPRC Chennai.
• POSB Credits in respect of HRMS (Salary/Pension/Claims) transactions shall no longer be accounted in the DTR of the Post Office where the respective Salary/Pension/Claim Office Account is maintained, as provided under Para 6, Sl. No. 19 of SB Order No. 12/2025.
• All Post Offices shall tally the DTR with relevant Finacle reports in accordance with SB Order No. 09/2026 dated 24.07.2026. Any discrepancy must be investigated and resolved promptly.
• Finacle Receipts and Payments SOL‑wise, date‑wise, and account code‑wise data extracted by CBS Reports Team is available in the SFTP folder: /CBSDM/incoming/Production/WebPage/DOP_REPORTS/SB_Order_No_09-2026 for download, to be used for tallying with the Monthly Cash Account by SBCO In‑Charge.
• Circulate these instructions to all concerned offices for information, guidance, and necessary action.
• This issues with the approval of the Competent Authority.

03/09/2026 (Devender Kumar Sharma)

Assistant Director (SB‑II)

Copy to:

1. Sr. PPS to Secretary (Posts)
2. Sr. PPS to Director General Postal Services
3. PPS/PS to Members (Financial Services, O, P, HRD, Tech, Service Quality & Marketing, Infrastructure), AS & FA
4. Addl. Director General, APS, New Delhi
5. Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate
6. CGM, CEPT
7. Sr. DDG (Vigilance) & CVO / Sr. DDG (PAF)
8. Director, RAKNPA / Directors of all PTCs
9. Director, CPRC Chennai
10. Director General P & T (Audit), Civil Lines, New Delhi
11. Secretary, Postal Services Board / All DDGs
12. All GMs (Finance) / Directors Postal Accounts / DDAP
13. Joint Director & HOD, National Savings Institute, New Delhi
14. Under Secretary, MOF (DEA), NS‑II Section, North Block, New Delhi
15. All recognized Federations / Unions / Associations
16. Guard File/e‑File

03/09/2026 (Devender Kumar Sharma) 

Assistant Director (SB‑II)

Clarification regarding the premature closure of 5-year Time Deposit (TD) accounts after completion of four years – Applicability of 2% deduction in respect of accounts opened between 12.12.2019 and 09.11.2023

Premature Closure of 5-Year Time Deposit Accounts: Department of Posts Clarifies Applicability of 2% Interest Deduction for Accounts Opened Before 09.11.2023

No. FS-10/27/2024-FS-DOP

भारत सरकार / Government of India

संचार मंत्रालय / Ministry of Communications

डाक विभाग / Department of Posts

(वित्तीय सेवा प्रभाग) / (Financial Services Division)

डाक भवन, संसद मार्ग, नई दिल्ली / Dak Bhawan, Sansad Marg, New Delhi

Dated: 24.07.2026

To

The Chief Postmaster General

Andhra Pradesh Circle,

Vijayawada-520013.

Subject: Clarification regarding the premature closure of 5-year Time Deposit (TD) accounts after completion of four years – Applicability of 2% deduction in respect of accounts opened between 12.12.2019 and 09.11.2023.

Sir/Madam,

Kindly refer to Andhra Pradesh Circle letter no. APCO/FS/Misc-II/24-25 dated 20.11.2024 on the subject cited above.

The matter was taken up with the Department of Economic Affairs (DEA), Ministry of Finance (MoF) for clarification and vide OM No. 1/17/2024-NS dated 16.07.2026 (copy enclosed), the DEA, MoF has clarified that the amendments notified vide G.S.R. 830(E) dated 07.11.2023 circulated vide SB Order 22/2023, which came into force on 09.11.2023, shall be applicable only to Time Deposit accounts opened on or after 09.11.2023.

Accordingly, Time Deposit accounts opened prior to 09.11.2023 shall continue to be governed by the provisions of the National Savings Time Deposit Scheme, 2019, as applicable before the said amendment.

Therefore, in respect of 5-year Time Deposit accounts opened between 12.12.2019 and 09.11.2023 and prematurely closed after the completion of four years, the interest payable shall be calculated at the rate admissible for the corresponding 3-year Time Deposit less two percentage points, in terms of Rule 8(c) of the National Savings Time Deposit Scheme, 2019, as applicable prior to the amendment.

This issues with the approval of the Competent Authority.

Yours faithfully

(Prasenjit Chatarji)

Assistant Director (SB-I)

Copy to:

All Head of Circles for information and necessary action in similar cases.

Clarification on Premature Closure Interest Rules for 5-Year Time Deposit Accounts Opened Before 09 November 2023

Premature Closure of 5-Year Time Deposit (TD) Accounts

Reference: Ministry of Finance, Department of Economic Affairs (Budget Division) Office Memorandum dated 16 July 2026

Subject

Clarification regarding the applicability of 2% interest deduction for premature closure of 5-year Time Deposit (TD) accounts after completion of four years.

Key Clarification

• The amendments notified through G.S.R. 830(E) dated 07.11.2023, effective from 09.11.2023, apply only to TD accounts opened on or after 09.11.2023.
• TD accounts opened before 09.11.2023 will continue to be governed by the provisions of the National Savings Time Deposit Scheme, 2019 as they existed prior to the amendment.

Interest Calculation for Premature Closure

For 5-year TD accounts opened before 09.11.2023 and closed prematurely after completion of four years:

• Interest shall be calculated at the rate applicable to the corresponding 3-year Time Deposit.
• A deduction of 2 percentage points shall be applied from that rate.
• This is in accordance with Rule 8(c) of the National Savings Time Deposit Scheme, 2019 (pre-amendment provisions).

Operational Impact

• The 2% deduction remains applicable for eligible 5-year TD accounts opened prior to 09.11.2023 and closed after four years.
• Accounts opened on or after 09.11.2023 will be governed by the amended rules notified through G.S.R. 830(E).

Conclusion

The Ministry of Finance has clarified that the pre-amendment provisions, including the 2% deduction, continue to apply to 5-year TD accounts opened before 09.11.2023, even when they are prematurely closed after four years. This clarification has been issued with the approval of the Competent Authority.

DOP Order No. FS-10/27/2024-FS-DOP dated 24/07/2026

SB Order 09/2026 Standard Operating Procedure (SOP) for Accounting & Verification of POSB accounting at Post Office after implementation of APT 2.0

 

SB Order No. 09/2026 – SOP for Accounting & Verification of POSB Transactions in APT 2.0

Issued by: Department of Posts, Financial Services Division

Date: 24.07.2026

Purpose: To prescribe a Standard Operating Procedure (SOP) for accounting, reconciliation, and verification of POSB CBS transactions after implementation of APT 2.0.

---

1. Objective

The SOP aims to ensure that all POSB transactions performed in Finacle and DREAM App are correctly accounted for in APT 2.0 through API integration and verified daily at various levels to maintain accuracy and transparency in accounts.

---

2. Important Day-End Instructions

Before Day-End

• Complete all CBS transactions in Finacle/DREAM App.
• Execute CSMDAY in HOs/SOs.
• Execute Close Account in DREAM App for BOs.
• No transaction should be performed after successful completion of CSMDAY/Close Account.
• CBS data is extracted from Finacle for accounting in APT only after these activities.

---

3. Responsibilities of Branch Post Offices (BOs)

Daily Activities

• Perform Day Begin in DREAM App.
• Conduct CBS transactions only between Day Begin and Day End.
• Check and clear all pending CBS transactions before Close Account.
• Generate and verify Daily Transaction Report.
• Ensure all transactions are reflected in BO Daily Account (BODA).

Handling Mismatches

If transactions are not reflected in BODA:

• Account separately under:
  • CBS Receipt Mismatch
  • CBS Payment Mismatch
• Receipt and payment mismatches must never be netted off.
• Record mismatch details manually in BODA.
• Inform the Account Office for reconciliation.

Responsibility

• BPM is responsible for correctness and daily incorporation of CBS data in BODA.

---

4. Responsibilities of HOs/SOs – Own Office Transactions

Key Instructions

• All CBS transactions must be performed only in Finacle.
• Direct accounting in APT should be avoided.
• Ensure API data is fetched before APT Day End.
• Verify that all CBS receipts and payments are reflected in Daily Transaction Report (DTR).

Mismatch Handling

• Missing transactions due to technical issues must be accounted under:
  • CBS Receipt Mismatch
  • CBS Payment Mismatch
• Netting of mismatches is prohibited.

Responsibility

• Postmaster/SPM is responsible for correctness of CBS accounting and reporting mismatches to Account Office.

---

5. Verification of Subordinate Office Transactions

Account Office Responsibilities

• Generate Finacle CBS reports for subordinate offices.
• Verify BODA/SODA with Finacle reports.
• Reconcile discrepancies through Sub Accounts Module.

When Mismatch Exists

• Correct account codes using Finacle reports.
• Reclassify mismatch receipts/payments under proper account heads.

When Transactions Are Missing but No Mismatch Is Reported

• Raise Error Book entry.
• Call for explanation from SPM/BPM.
• No accounting correction should be made for that day.
• Repeated cases must be reported to Divisional Head.

---

6. Responsibilities of SBCO at Head Office

Daily Verification

• Generate consolidated Finacle GL reports.
• Download HO Cash Book.
• Verify account-code-wise matching between:
  • Finacle CBS Reports
  • HO Cash Book
• Identify and investigate discrepancies.

Discrepancy Management

• Maintain a CBS Daily Discrepancy Reconciliation Register.
• Monitor settlement of discrepancies.
• Verify rectification through Transfer Entries and Adjustment Entries.
• Consider discrepancy settled only after verification.

Monthly Reporting

• Submit Monthly Reconciliation Report to PAO.
• Due date: On or before 4th of succeeding month.
• Report must be jointly signed by:
  • SBCO In-charge
  • Postmaster
• Copy to Divisional Office.

---

7. Responsibilities of Postmaster

The Postmaster must ensure:

• All POSB transactions are completed before CSMDAY.
• CBS mismatch entries are adjusted.
• Error Book entries are attended promptly.
• SBCO receives HO Cash Book.
• Daily comparison of Cash Book and Finacle reports.
• Daily account-code-wise reconciliation.
• Discrepancies are settled on the next working day.
• Monthly reports are submitted on time.

---

8. Monitoring Responsibilities

Sub-Divisional Office

• Monitor compliance by BOs and SOs.

Divisional Office

• Monitor compliance by HOs and SBCOs.

Inspecting Authorities

• Verify the CBS Daily Discrepancy Reconciliation Register during inspections.
• Record observations in Inspection Reports.

---

9. Key Reports for Reconciliation

Same-Day Reports (Production Server)

• GL IT 2.0 Transaction Report – Consolidated
• GL IT 2.0 Transaction Report – Detailed
• GL IT 2.0 Report GL Wise – Consolidated

Previous-Day Reports (MIS Server)

• GL IT 2.0 Transaction Report – Consolidated
• GL IT 2.0 Transaction Report – Detailed
• GL IT 2.0 Report GL Wise – Consolidated

---

10. Important Takeaways

✅ No CBS transaction should remain pending before Day End.

✅ Receipt and Payment mismatches must be accounted separately.

✅ Daily reconciliation between Finacle and APT is mandatory.

✅ SBCO must maintain a permanent discrepancy register.

✅ Monthly reconciliation report must reach PAO by the 4th of every month.

✅ Divisional and Inspection authorities must continuously monitor compliance.

Download SB Order 09/2026 in PDF from CEPT

SB Order No. 09/2026 – SOP for Accounting, Verification and Reconciliation of POSB Transactions in APT 2.0 [PPT]

  

POSB Interest Rates & Maturity Values w.e.f 01.07.2026 to 30.09.2026

CBS CPC Guidance on Interest Table Code for Exceptional SSA Closure

 

SSA Closure: Use ZERO Code

CBS CPC has advised that, during HINTTM before an exceptional SSA closure, the Interest Table Code should be set to ‘ZERO’ and the Start Date should be the account opening date. The mention of ‘TZERO’ in the CBS manual may be a typographical error, or it could reflect a later change in menu options.

PPF Premature Closure

No changes in POSB Interest Rates

 

MPKBY Agency Rules: Appointment, Eligibility, Commission, and Operational Procedures

Mahila Pradhan Kshetriya Bachat Yojana MPKBY Rules · Issued 1st April, 1972 & amended

MPKBY · NSI

📑 Index navigate

• 1. Scheme & Objectives
• 1. Scope & Eligibility
• Application & Security
• Agreement & Certificate
• Issue of Cards
• Cash Handling Limit
• Commission
• Time Limit
• Authorities
• Termination & Loss
• Part II · Instructions
• Part III · Cards & Stock
• Part IV · Important Orders
• Part V · Post Office Procedure

1. The Scheme

The Scheme will be called the 'Mahila Pradhan Kshetriya Bachat Yojana'.

Objectives

• To educate housewives in family budgeting.
• To inculcate the habit of thrift among households and self-employed people.
• To canvass for and secure investments in P.O. 5-year Recurring Deposit Accounts from small savers.
• To raise resources for financing development and defence of the country.

Date of Introduction: The Mahila Pradhan Kshetriya Bachat Yojana has come into force with effect from the 1st April, 1972.

1. Scope of Agency & Eligibility

Scope: The Agency will be confined to canvassing for and receiving investments in the Post Office 5-Year Recurring Deposit Accounts.

Eligibility

• An individual woman (Mahila Agent) who is a resident of the locality, recommended by the District Small Savings Officer.
• No Central/State Government employee shall be appointed as Mahila Agent.
• Near relatives of employees of Department of Posts and National Savings Institute are not eligible for appointment or renewal.
• Near relatives of other Central/State Government officials (excluding Posts & NSI) may be appointed with clearance from the Head of Office.
• Near relative includes: husband/wife, legitimate child/step child, father/step father, mother/step mother, brother/step brother, sister/step sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law.

Important Decision: Discontinuance of appointment of juridical persons as MPKBY agents – fresh approvals for juridical persons shall not be considered.
[MOF (DEA) letter No. F.2/6/2005- NS.II Dated 12.9.2005]

Application & Security

Application: Individual Mahila agent will apply in form No. ASLAAS-1 (B). The Appointing Authority shall inform approval in form No. ASLAAS-2.

Security

• Security of ₹100 / ₹500 in the shape of a 6-Year NSC duly pledged to the President of India.
• Alternative: Fidelity Guarantee Policy of ₹1000 / ₹5000, or two personal sureties each guaranteeing ₹1000 / ₹5000.

Note: For handling cash up to ₹5,000 at a time, lower security (₹100) is required; for handling cash up to ₹10,000, higher security (₹500) is required.

Agreement & Certificate of Authority

Agreement: The Mahila agent shall execute an agreement in writing (Form ASLAAS-3).

Certificate of Authority: The Mahila agent shall be given a Certificate of Authority (Form ASLAAS-4) attaching her to one post office only.

Clarification: Agents should preferably be attached only to Head/Sub Post Offices. Branch Post Offices may be used but schedules must be certified by the Sub/Head Postmaster.
[NSC Nagpur letter No. Dev 1/22/1/11/83- Temp. dated 12.12.1988]

Issue of Cards to Depositors

With effect from 1st April, 1977, Mahila agents will use serially numbered cards (Form ASLAAS-5) for acknowledging receipt of deposits. The card has three foils.

• First foil: Handed over to the depositor after filling columns (1),(2),(3).
• Third foil: Detached and kept by the agent after getting depositor's signature; sent once in ten days to the District Small Savings Officer.
• Second foil: Retained by the agent for her record.

For existing accounts: agent takes money and pass book, signs with date in column 3 of the first foil. For new accounts: agent receives money and application form, signs with date.

Note: District Small Savings Officer should keep a watch on money transactions every month to ensure the cash handling limit is not exceeded.

Cash Handling Limit (MPKBY Agents)

As per existing procedure, a Mahila Agent is authorized to handle cash not exceeding ₹5,000 or ₹10,000 at a time depending on security deposited.

• Raising of limit: With effect from 31.8.1987, the limit was raised from ₹5,000 to ₹10,000 at a time for agents who furnish cash security of ₹500 (or Fidelity Guarantee Policy of ₹5,000).
• Cheques: The limit applies to actual cash (currency), not to crossed cheques. There is no limit for cheque deposits.

Clarification: Agents are not debarred from depositing more than ₹10,000 in a day on more than one occasion. The limit is "at a time".
[N.S.C. Nagpur letter No. 17672/Agency/23-1/87 dated 12.10.1995]

Commission

With effect from 1st January, 2000, commission at the rate of 4% of deposits shall be paid to MPKBY agents on the total investment deposited by her.

Author's Note: The agent will also be entitled to commission on deposits made through her on accounts continued after maturity for a further period up to 5 years under rule 10 of PORD Rules, 1981. Commission is also payable for accounts opened in her name or in the names of her husband or children.

Payment at source: With effect from 1.5.2000, commission is paid by Postmasters at source at the time of depositing money. The agent prepares a schedule (ASLAAS-6) in quadruplicate and tenders net deposit by cash and gross by cheque.

Time Limit for Transactions

• Deposit of money: Must be deposited in the post office within 5 to 10 days from receipt from investor, and in any case by the last day of the month.
• Delivery of Pass Book: Must be delivered to the investor within 10 days from receipt from post office.
• Commission claim: Paid at source by Postmasters; schedule to be prepared in quadruplicate.

Numbering of Schedules (w.e.f. 1st June 2006): ASLAAS-6 schedules will be serially numbered as X/Y/L (X=month, Y=serial number, L=last schedule of the month).

Authorities under the Scheme

• Appointing Authority: Director, Small Savings of State Government; District Collectors/Deputy Commissioners.
• Issuing Authority: Same as Appointing Authority.
• Deposit Receiving Authority: The post office indicated in the Certificate of Authority.
• Checking Authority: District Small Savings Officer.
• Supervisory Authority: Director, Small Savings and District Small Savings Officer.
• Paying Authority: Director, Small Savings and District Small Savings Officer.

Note: From 21.11.2002, MPKBY agents will be appointed by State Governments. Regional Director/Deputy Regional Director, NSI will neither appoint nor renew after this date.

Loss of Certificate & Termination

Loss of Certificate of Authority: The Mahila agent shall immediately inform the post office, District Small Savings Officer, local Police and Appointing Authority. The loss must be notified in at least one local newspaper at the agent's cost. The agent shall execute an indemnity bond.

Termination of Agency: On termination, the Mahila agent shall forthwith deliver to the Checking or Appointing Authority all monies and papers including Certificate(s) of Authority, cards/counterfoils, documents and securities.

Part II · Instructions to Authorities

A. Appointing Authority

• No Central/State Government employee shall be appointed.
• Near relatives of Postal and NSI officials are not to be appointed.
• Agency documents (Applications, Agreements, Cards, Security) must be kept in safe custody.
• Applications should be serially numbered and date-wise; one file for each District Small Savings Officer's jurisdiction.
• Agreement should be kept separately in the same numerical sequence as the application.
• Cross reference between application and agreement should be given.
• Foils of Certificate of Authority must be promptly intimated to the post office and District Small Savings Officer.

B. Issuing and Paying Authorities

• Depositor's Cards shall be issued up to a limit decided by the Issuing Authority.
• Proper account of cards shall be maintained in Stock Register and personal ledger of each agent.
• On termination, all cards, counterfoils, Certificate of Authority and connected papers must be recovered promptly.
• District Small Savings Officer must keep a check on cash transactions to ensure the limit is not exceeded.

C. Supervisory Authorities (Deputy R.D./D.S.S.O.)

• Inspect Depositor's Cards once in a quarter and put signature with date.
• Any discrepancies or suspected misappropriations must be promptly looked into.
• If misappropriation is prima facie established, report to Director, Small Savings, Appointing Authority and Local Police.

Part III · Printing, Stocking & Supply of Depositor's Cards

Issuing Authority: Director, Small Savings at headquarters; District Small Savings Officer.

• Cards will be serially numbered; account of every card received and issued must be maintained.
• Appointing Authority shall open a register (Annexure-10).
• Director, Small Savings shall open a ledger (Annexure-11) showing distribution to DSSOs.
• Each DSSO shall maintain a ledger (Annexure-12) showing distribution to Mahila agents.

Procedure by Issuing Authority: At issue, DSSO impresses card and counterfoil with office stamp, gives running serial number. Initial supply based on demand. Counterfoils to be returned immediately after opening new accounts.

Note: On the basis of counterfoils, the DSSO shall issue a letter to the depositor (Annexure-13) in each case of new account.

Part IV · Important Orders

1. Changes in procedure

• Besides individual women, only women's organizations shall be appointed as agents. Other institutions/organizations not eligible.
• Sugar Cane Unions and similar institutions shall not be appointed or reappointed.
• Unauthorized persons (male relatives, etc.) shall not transact business on behalf of Mahila agents. Only accredited messengers may deposit money.
• Restrictions on appointment of near relatives of NSO and Postal officials apply to MPKBY with immediate effect.
• Near relative of non-gazetted Postal official in same division not eligible; near relative of gazetted Postal official not eligible anywhere in India.

1.3 & 1.4 Appointment & Renewal restrictions

Near relatives of employees of Department of Posts and NSI are not eligible for appointment or renewal under MPKBY. The ban does not apply to near relatives of Department of Telecommunications (since bifurcation).

1.5 Nomination facility

Nomination facility extended to MPKBY agents. Schedule 'A' shall be attached to the Agreement. In the event of death, commission shall be payable to nominee(s).

1.6 Removal of area restriction

Restriction on area of operation removed for all places. Agents may canvass anywhere in the State without limitation.

1.7 Deduction for expenses

Agents with gross commission not exceeding ₹60,000 are eligible for ad-hoc deduction of 50% of gross receipt (CBDT Circular).

1.9 Renewal of Agency

Agency valid for three years; application for renewal must be submitted 45 days in advance.

9A & 10

MPKBY agents cannot act as agent or messenger for withdrawal of money. Near relatives of EDBPM are not eligible for appointment as MPKBY agents.

11. Change of MPKBY Agent

Depositor may seek change of agent in case of death, termination, change of residence, or if the account was opened directly. Approval from Regional Director required.

12. Stopping of appointment/renewal by Regional Directors

With effect from 15.11.2002, Regional Directors, NSO shall not appoint or renew MPKBY agents. Existing agents to approach concerned Appointing Authorities.

Part V · Procedure in Post Offices

Certificate of Authority: Maintained by Postmaster in a serially numbered guard file. Identity of agent verified by specimen signature on Certificate of Authority and schedule.

Deposit of money: Money collected must be deposited within 5 to 10 days from receipt, and by the last day of the month in any case. Deposits accompanied by schedule (ASLAAS-6) in quadruplicate.

Numbering of Schedules: For financial year 2006-07, schedules serially numbered as X/Y/L. From 2007-08 onwards, numbered from 1st April.

Deposit through messenger: Accredited messengers of Mahila agents are permitted to deposit money in post offices.

Issue of pass books for new accounts: Pass books prepared by post office (other than ED sub office) and delivered to the Mahila agent. ED sub office issues Preliminary Receipt (SB-26).

Payment of commission: Commission paid at source by post offices w.e.f. 1.5.2000 at the rate of 4%.

Termination of agency: On termination, Appointing Authority sends intimation to post office; remark made in Certificate of Authority under Postmaster's dated signature.

📘 Published on www.potoolsblog.in

✦ Mahila Pradhan Kshetriya Bachat Yojana · Official rules ✦

National Savings Institute, Ministry of Finance (DEA), Govt. of India

Standardised Agency System Rules – Governing Framework for Small Savings Agents

Standardised Agency System Rules Issued vide Ministry of Finance (DEA) O.M. No. F1(53)/NS/57 dated 31.12.1959 & amended

SAS · NSI

📑 Index navigate

• 1.1 Introduction
• 1.2 Scope
• 1.3 Eligibility
• 1.4–1.5 Application & Appointing Authority
• 1.6 Security
• 1.7 Agreement
• 1.12 Renewal
• 1.19 Field of operation
• 1.20 Supply of receipt books
• 1.21 Commission
• 1.24 Termination
• 1.28 Transfer of agents
• Part II · Important Orders

1.1 Introduction

Prior to 1.10.1960 various agency systems were introduced from time to time with an object of creating small savings workers on commission basis to approach various sections of the population in India to invest their savings in Government Securities. On 1.10.1960 various Agency Systems were rationalized by introducing one common agency system both for urban and rural areas. The new agency system is called as "Standardised Agency System".

1.2 Scope of the Agency

The agency at present is confined to canvass for the sale of Kisan Vikas Patras, National Savings Certificates (VIII-Issue), deposits in Time Deposits Accounts, Monthly Income Savings Accounts and Senior Citizens Savings Scheme Accounts. It may be extended to such other small savings securities as may be notified by the Government of India from time to time as being saleable through Authorized Agents.

1.3 Eligibility

a) Adult individuals and EDBPMs will be eligible for appointment as authorized agents. An individual selected for appointment should be a person of substance having wide contacts and sufficiently educated to transact the agency business. Non-gazetted employees of the Central and State Governments are eligible for appointment as Internal Agents only on the recommendation of the head of the office concerned.

Important Decision: Discontinuance of appointment of juridical persons as SAS/MPKBY/PPF Agents — fresh approvals for agencies to juridical persons may henceforth not be considered.

b) Persons not eligible: The agency shall not be granted to:

• Employees of the National Savings Institute
• Employees of the Department of Posts
• Central and State Government employees except when appointed as Internal Agents
• Extra Departmental Employees of the Department of Posts other than EDBPMs
• Near relatives of the employees of Departments of Posts and the National Savings Institutes (as defined)

c) Near relatives of officials working in other Departments of the Central or State Government are eligible, provided the Controlling Authority has no objection.

1.4 & 1.5 Application & Appointing Authority

An individual desirous of being appointed as authorized agent will make an application in Form AAS-1. The Appointing Authority will be officers authorized by the State Government (Collector/Deputy Commissioner, Tehsildar, BDO or other gazetted officers).

From 21.11.2002, SAS agents will be appointed by the respective State Governments. They will also renew the agency of existing agents. The Regional Director/Deputy Regional Director, NSI will neither appoint nor renew after this date.

1.6 Security

Security / Guarantee	Value of receipt books
Cash security ₹5,000 or Bank Guarantee / Fidelity Guarantee Policy	₹1,00,000 + two blank crossed cheque books
Cash security ₹2,000 or Fidelity Guarantee Policy with two sureties of ₹2,000 each or one bank surety ₹4,000	₹50,000 + two blank crossed cheque books
Cash security ₹100 or Fidelity Guarantee Policy or two sureties ₹1,000 each / bank surety ₹2,000	₹20,000 + two blank crossed cheque books
Cash security ₹100	₹5,000
No security (Internal agents / exempted officials)	₹5,000 + one blank crossed cheque book

Notes: Fidelity Guarantee Policy and Agency to be renewed every three years. If personal surety is given, a certificate of surety alive must be submitted every year.

1.7 Agreement

Two types of agreement: for individuals furnishing personal sureties (Form ASS-3) and for all classes of agents who furnish security or for whom no security is prescribed (Form AAS-4). The agreement shall be initially for a period of three years and may be renewed for further periods not exceeding three years at a time.

1.12 Renewal

The agency is valid for three years and can be renewed on completion of this period. The agent should apply for renewal in Form AAS(1A) 45 days prior to expiry. No commission shall be paid on business transacted after expiry if the agency is not renewed. Fresh Certificate of Authority need not be issued; old certificate may be endorsed.

1.19 Field of operation

The Agent is allowed to canvass investment throughout the State in which he is appointed. He can be attached to one or all post offices under the same head post office for effecting transactions, but for receiving receipt books he can be attached to any one sub office or head office.

Internal agents: scope limited to staff of that office and family members. May canvass staff of neighbouring offices under conditions.

1.20 Supply of receipt books

Receipt books supplied by the post office to which agent is attached. Each receipt is machine numbered with counterfoil. Denominations: not above ₹1,000; ₹5,000; ₹10,000. Crossed cheque receipt books without denomination. Total value of receipt books shall not exceed the value specified in Certificate of Authority.

Loss of receipt book: report to Post Office, Appointing Authority and Regional Director, NSI immediately; also notify loss in at least one local newspaper.

Important Orders on receipt books: Maximum limit of cash receipt books issued to SAS agents is ₹50,000 at a time. The agent can obtain receipt books again on the same day after depositing cash — the idea is that he should not retain cash more than ₹50,000 with him at a time.

1.21 Commission

The agent shall be entitled to commission at rates notified by Government from time to time. Rates admissible as fixed from 1.1.2000 / 2.8.2004 for SCSS (on current schemes) are furnished below:

Name of securities	Rate of commission
1/2/3/5-year Time Deposits	1%
Monthly Income Account Scheme	1%
Kisan Vikas Patras	1%
6-Year National Savings Certificates (VIII-issue)	1%
Senior Citizens Savings Scheme	0.5%

1.22 Investment on which commission is not payable: Provident/Superannuation/Gratuity funds, co-operative society funds, court funds, funds in control of Government Officers, investments made by Institutions/Trusts/Companies, etc., and holdings invested in excess of prescribed limit.

1.24 Termination of Agency

When an agency is terminated or an agent dies, the Appointing Authority sends intimation by registered post to the post office. The agent shall deposit un-deposited investment money and return partially used/unused receipt books. Used receipt books (agent's copies) need not be obtained.

24A. Misappropriation: Appointing Authority to take suo moto prompt action, ascertain extent, realize losses from agent/sureties.

24B. SAS/MPKBY/PPF agents cannot act as agent or messenger for withdrawal of money.

1.28 Transfer of agents from one place to another

Type of transfer	Procedure
Transfer to a place outside the state	Fresh agreement with Appointing Authority of new State
Transfer from one Tehsil to another (same HPO, different AA)	Continue without change; register new address with AA and DSO
Transfer outside HPO jurisdiction but within same AA	Transfer name from rolls of previous HPO to new HPO on advice from AA
Transfer involving change of both AA and HPO (same State)	AA sends advice to new HPO/AA; agreement remains with original authority; entry made in register

Note: In cases (i) and (iv), the old HPO/Sub Office should call for unused receipts and receipt books and intimate particulars to the new office.

Part II · Important Orders

1.1 Appointment of State Government employee / near relatives of P&T as agents

No official of Central/State/UT Government shall be appointed as agent under SAS except as Internal Agent. Near relatives of officials working in Department of Posts and National Savings Organisation are barred from appointment. A new declaration in Form AAS-1 to be included: "I am not employed under the Central or State/Union Territory Government" and declaration regarding near relatives.

1.2 Appointment of Extra Departmental Employees of Department of Posts

Extra-Departmental employees of Department of Posts (other than EDBPMs) are not eligible. Where such employees have been appointed, their agency must be terminated immediately. EDBPMs are an exempted category.

1.3 & 1.4 Near relatives of employees of Dept. of Posts & NSI

Hereafter near relatives of employees of Department of Posts and NSI are not eligible for appointment or renewal under SAS, MPKBY and PPF Agency Scheme. Existing agents who are near relatives may be reviewed and agency terminated. The ban does not apply to near relatives of employees of Department of Telecommunications (since bifurcation).

1.5 Deduction for expenses on commission

For agents where gross commission does not exceed ₹60,000 during the year, an ad-hoc deduction of 50% of gross receipt is allowed (CBDT Circular). If commission exceeds ₹60,000, actual expenditure may be allowed by Assessing Officer.

1.6 Facility of Nomination (Form AAS-4)

Agents are allowed to nominate person(s) to receive commission due in the event of death. Schedule 'B' added to the Agreement. The nomination form shall be in triplicate; one copy sent to concerned Head/Sub Post Office.

1.8 Appointment of near relatives of EDBPM as SAS agents

There is no bar in appointing relatives of EDBPM as agents under SAS. For MPKBY, since it is specifically for women, relatives cannot be appointed.

1.9 Stopping of appointment/renewal by Regional Directors, NSI

Ministry of Finance directed to stop appointment and renewal of agency under SAS and MPKBY by Regional Directors with immediate effect (w.e.f. 15.11.2002). Existing agents to approach concerned Appointing Authorities. PPF agency system continues with NSO till further orders.

1.11 Payment of commission to heirs of deceased agents

Commission admissible to deceased agent may be paid to heir(s) after establishing claim. Nomination facility available as per Schedule B.

1.12 Report to Income Tax Authorities

Head Postmasters to send list of authorised agents drawing commission of ₹5,000 and above during the financial year to the concerned Income Tax Commissioners.

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✦ Standardised Agency System Rules · Official document ✦