Linking your MIS to Post Office Saving Accounts or Bank Accounts
The Post Office has been one of India’s most trusted places for depositing money, especially preferred by the older generation. Post Offices offer a variety of schemes that provide not only stable returns but also offer excellent risk mitigation.
Let us read more in detail about PO MIS, one of its most popular schemes.
Starting 1st April 2022, Government credited interest from these schemes will only be deposited into the post office savings account or bank accounts (linked with the scheme).
The Ministry of Communications Department of Posts stated in its latest circular that this step has been taken to better control POSB operations, prevent fraud, money laundering, and also to promote digital transactions.
The circular explicitly states the benefit of linking savings accounts to MIS, and other PO schemes:
a) The interest credited may earn additional interest (in the PO Saving Account), provided it is not withdrawn from the MIS account itself
b) Depositors can withdraw their interest in a variety of methods, including electronically, without having to visit a post office
c) No longer will investors have to fill out numerous withdrawal forms for each MIS/SCSS/TD account
d) Through the PO Savings Account, depositors can request automatic credit of interest amounts from their MIS/SCSS/TD accounts to their RD accounts too.
How to link your PO savings account to MIS?
In case you hold a PO saving account, you will need to submit the SB-83 Form (Standing Instruction application) to facilitate automatic transfer. This shall ensure you have linked your PO savings account to MIS. However, the account holder will need to submit his MIS account and PO savings account passbooks to the post office for verification and authenticity.
How to link a bank account to MIS?
If you hold a bank account, then you will need to submit an ESC-1 Form (ECS Mandate Form) along with a canceled cheque or copy of the first page of the bank account passbook (which you wish to link). Also, you will need to submit MIS passbooks for endorsement.
What happens if you fail to link your MIS to a savings/bank account?
If you fail to link your MIS to savings/bank accounts by 31st March 2022, the interest earned will be credited to a sundry account. There may be a separate set of forms and processes to claim the unclaimed interest once the amount goes into a sundry account. Additionally, from 1st April 2022, the outstanding balance in sundry accounts will be paid only through credit in the PO savings account or by means of a cheque. No cash payment of interest will be allowed from sundry accounts.
India Post Payments Bank (IPPB) has been notified to facilitate the entire process and avoid any possible roadblocks.
Read more about Post Office Savings Scheme
Conclusion
If you hold any PO schemes like MIS, TD, etc., you need to link them immediately to your PO savings account or bank account. Failure to do so can result in interest being credited to a sundry account, which makes retrieval even more arduous. You can link your MIS to a PO savings account or bank accounts through the above-mentioned forms. It is recommended that you complete all the formalities before 31st March 2022 to avoid any complications later.