POST OFFICE (MONTHLY INCOME ACCOUNT) RULES, 1987

R.1 Short title and commencement.--

(1) These rules may be called the Post Office (Monthly Income Account) Rules, 1987.
(2) They shall come into force on the 15th day of August, 1987.

R.2 Definitions.--

       In these rules, unless the context otherwise requires,--
       (a) "account" means a savings account opened by a depositor in accordance with the provisions of these rules;
       (b) "Act" means the Government Savings Banks Act, 1873 (5 of 1873);
       13[(c) 'Deposit' means the money deposited by a depositor in an account under these rules;
       (ca) 'Depositor' means an individual who,-
       (i) on his own behalf; or
       (ii) on behalf of a minor or a person of unsound mind of whom he is the guardian,
       deposits money in an account under these rules.]
       (d) "post office" means any post office in India doin

R.3 Application of the Post Office Savings Bank General Rules, 1981, and the Post Office Savings Account Rules, 1987.--

The provisions of the Post Office Savings Bank General Rules, 1981, and the Post Office Savings Account Rules, 1987, as the case may be, apply in relation to matters for which no provision has been made in these rules.

R.4 1 [Opening of accounts.--

       A depositor may operate more than one account under these rules subject to the condition that deposits in all accounts taken together shall not exceed rupees 16[four lakh fifty thousand] in case of single account and rupees 16[nine lakhs] in case of joint account.]
       2["Note : For the purpose of maximum balance, the depositor's share in the balance of a joint account shall be taken as one-half or one-third of such balance according to the account is held by two adults or three adults."]
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       1. Substituted by the Post Office (Monthly Income Account) (Amendment) Rules, 2000, w.e.f 1-2-2000 .
       2. Inserted by Post Office (Monthly Income Account) (Fourth Amdt.) Rules, 2000, w.e.f. 5-9-2000.

R.5 Deposits and withdrawals.--

       3[(1) There shall be only one deposit in the account in the multiple of 17[one thousand five hundred] not exceeding rupees 17[four lakh fifty thousand] in case of single account and rupees 17[nine lakhs] in case of joint account.]
       (2) Except as provided in rule 10, no withdrawal shall be permitted under these rules before the expiry of a period of six years from the dale of opening of an account.
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       3. Substituted by the Post Office (Monthly Income Account) (Third Amendment) Rules, 2000, w.e.f. 18-7-2000.
       17. Substituted by the Post Office (Monthly Income Accounts) (Amendment) Rules, 2007 vide Notification No. G.S.R.521(E) dated 01.08.2007 for the words
       "one thou

R.6 Mode of deposit.--

       (1) The deposit under these rules may be made :
       (a) in cash, or
       (b) by cheque or demand draft drawn in favour of depositor or the postmaster of the Post Office and endorsed in favour of the postmaster.
       (2) Where deposit is made by cheque or demand draft, the date of deposit under these rules shall be the date of encashment of the cheque or the demand draft.

R.7 Nomination.--

(1) The depositor may at the time of opening the account under these rules, nominate a person or persons who, in the event of death of the depositor, shall become entitled to payment of amount due on the account.
(2) If such nomination is not made at the time of opening account, it may be made by the depositor at any time after the opening of the account, but before its closure by means of an application, accompanied by the pass book to the postmaster of the Post Office.

R.8 Interest of deposit.--

       4[(1) The deposit made under these rules shall bear interest at the rate of--
       (a) 12 per cent per annum in respect of deposits made on or after the 15th day of August, 1987 but before the 24th day of April, 1992;
       (b) 14 per cent per annum in respect of deposits made on or after the 24th day of April, 1992 but before the 2nd day of September, 1993;
       (c) 13 per cent per annum in respect of deposits made on or after the 2nd day of September, 1993 but before the 1st day of January, 1999;
       (d) 12 percent per annum in respect of deposits made on or after the 1st day of January, 1999 but before the 15th day of January, 2000;
       (e) 11 per cent per annum in respect of deposits made on or after the 15th day of January,

R.9 Closure of account.--

       (1) The deposit made at the time of opening of account shall be paid by the Post Office at which the account stands to the depositor on or after the expiry of six years from the date of the opening along with bonus equal to 10 percent of the amount deposited, on production of the pass book accompanied by a written application.
       14[Provided that no bonus shall be paid on the deposits made in the accounts opened on or after the 13th day of February, 2006.]
       18[Provided further that a bonus equal to five per cent of the amount deposited, on production of the passbook accompanied by a written application (withdrawal form) shall be paid on the deposits made in new accounts opened on or after the 8th day of December, 2007.]
       20[Provided also that in respect of deposits made, at the time of opening of

R.9(A) 12[9A- Post-maturity interest.--

       Where repayment of a deposit, inclusive of bonus, under rule 9 has become due but has not been made, interest shall be allowed on the amount due 19[***] from the date of maturity to the date of repayment of the deposit subject to the following conditions, namely:-
       (a) The interest shall be simple and shall be calculated at the rate applicable from time to time to savings accounts of the type of single or joint account,
       (b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.
       (c) The interest shall be paid to the depositor in lumpsum at the time of repayment of amount due.]
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       12. Inserted byGSR819(E) dt16.10.

R.10 15[10. Premature closure of account.--

       Notwithstanding anything contained in sub-rule (2) of rule 5, on an application made by the depositor in this regard, he may be permitted to withdraw the deposit and close the account any time after the expiry of a period of one year from the date of opening of such account, subject to the condition that :
       (i) if the account is closed on or before expiry of three years of opening of such account, an amount equal to two per cent of the deposit shall be deducted and remainder paid to him, and
       (ii) if the account is closed after expiry of three years from the date of opening of such account, an amount equal to one per cent, of the deposit shall be deducted and remainder paid to the depositor.]
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       15. Sub

R.11 Pass book.--

       (1) On opening an account, the depositor shall be given a pass book bearing the date of opening of account, the number of his account, his name and address and the amount deposited and also the monthly interest payable along with the date on which the deposit will be due for final payment.
       (2) The pass book shall be presented to the Post Office at the time of collecting interest every month and also at the time of closing the account.
       (3) The depositor availing facility of credit of interest in his savings account under sub-rule (3) of rule 8 shall present the pass book to the Post Office at least once in six months for completion of entries.

R.12 Power to relax.--

Where the Central Government is satisfied that the operation of any of the provisions of these rules causes undue hardship to the depositor, it may, by order, for reasons to be recorded in writing, relax the requirements of that provision in a manner not inconsistent with the provisions of the Act.