Post Office news: Know who can open zero-balance savings account

This news is very important for you if you have a savings bank account in the post office. The government has changed a few rules with regards to the savings account in the post office. The government has changed its rules to allow some people to open zero balance savings accounts in the post office. At present, it is important to keep a minimum balance in the post office savings account. 

However, as per a report in the Economic Times, people can open a zero-balance savings accounts in the post office.

People invest as safe alternatives in post office savings schemes. The entire money invested in it is guaranteed to be 100 per cent safe.

Its deposits are guaranteed by sovereign guarantees, i.e., if the post office fails to return the money of the account holders, the government guarantees investors' money.

What does the new rule say: 

The Finance Ministry has issued a notification on April 9, 2021 regarding the savings bank account of the post office. It explains who can open a zero balance saving account in the post office.

As per a notification by the Ministry of Finance issued on April 9, 2021, a basic savings account (or zero balance account) with the post office can be opened by an individual (a) who is a registered adult member of any government welfare scheme and (b) by the guardian of a minor whose name is registered for any government benefit. The basic saving account opened by these people will be a zero balance account. But can't be opened in more than one place. Money from government welfare schemes and any other scheme can also be credited to this account.

The basic savings account opened by the above-mentioned people will be a zero balance account, however, the number of accounts that can be opened cannot be more than one. Government welfare deposits and any other deposits are allowed under the basic savings account with the post office. Thus, if you are availing of any government benefit such as pension, scholarship, LPG subsidy, etc. and do not want to maintain a minimum balance in your savings account, then you can open such a zero-balance account with the post office.

Post office saving account

A savings account is opened in the post office for Rs 500. You can open the same savings account in a post office. At present, the annual interest rate on post office savings account is 4 per cent.

It can be opened in a single or joint, in the name of a minor child above 10 years of age, for a mentally challenged person.

Cheque/ATM facility, nomination facility, transfer of account from one post office to another, intra operable netbanking/mobile banking facility, online fund transfer facility between post office savings accounts are available on post office savings accounts. Deposits or withdrawals are required at least once within 3 financial years to keep the account active

Zero-balance account 

The government is believed to be allowing zero balance accounts to be opened with post offices that were earlier opened with banks. At present, banks also allow for the opening of a joint balance account.

The Reserve Bank of India (RBI) has asked banks to implement Jan Dhan yojana/scheme. Basic Savings Bank is allowed to open zero balance account under deposit account (BSBDA).