The Department of Posts said that it has been receiving several representations from RD or recurring deposit account holders regarding the need to deposit the outstanding RD loan/interest amount on mature RD accounts in the software platform. After examining the matter, the postal department has made necessary amendments.
Accordingly, the Post Offices which are Core Banking Solution or CBS enabled will deduct the outstanding RD loan/interest amount from the matured RD account. The amount deducted will be adjusted through the office account at the time of RD maturity payment. In other words, interest on outstanding RD loans/mature RD accounts will not be charged from the account holders at the time of payment of maturity value.
If the loan is not repaid till maturity, the loan and interest will be deducted from the maturity value of the RD account.
Post Office RD Accounts Maturing in 5 years or 60 monthly deposits from the date of opening). The accounts can be extended for a further period of 5 years by applying to the concerned post office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened.
Post Office RD account can be maintained without deposit for 5 years from the date of maturity.
Loan can be taken on RD accounts after depositing 12 installments and keeping the account in operation for 1 year. The depositor can avail loan facility up to 50% of the balance in the account. The loan can be repaid in a lump sum or in equated monthly installments. Interest on loan will be applicable as 2% + RD interest rate applicable on RD account.
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