Post Office Saving Schemes Rules: The new rules provide powers to certain post office authorities to sanction the claim amount even without the production of succession certificate or probate of Will.
Post Office Saving Schemes: Making a nomination in all financial instruments helps a lot. It ensures the rightful claimant gets the money or death proceeds as intended by the investor. In the absence of any nomination, the legal heirs often have to go through a lengthy process of claiming the money. Recently, there has been a change in the rules concerning the post office small saving schemes. The new rule pertains to the process of sanctioning of death claims of the various PO schemes where no nomination is registered and there is no legal evidence available. The Department of Posts under the Ministry of Communications & IT has issued two Orders on two different dates for the post officials to follow in such cases where nominations are not provided in the post office investments such as PPF, NSC, KVP, SCSS etc.
Till now, in the case where there is no nomination registered in any of the post office schemes the legal heirs of the investor had to furnish the succession certificate to claim the money. In the absence of furnishing such evidence, the money remained unclaimed with the post office. The new rules provide powers to certain post office authorities to sanction the claim amount even without the production of succession certificate or probate of will or letter of administration of the deceased estate by the claimants. Importantly, the sanctioning limit has been set for various authorities who would have the power to sanction the amount to the claimants. This process can be initiated only after six months of the death of the investor.
On 20 May 2019, the Order brought about certain amendments to the POSB(CBS) Manual, POSB Manual Volume I and POSB Manual Volume II regarding change in powers of various authorities to sanction deceased claim cases and their time-line in respect of Post Office Savings Schemes, including Certificates, where no nomination is registered and there is no legal evidence available or produced. The changes were to be implemented with immediate effect. Subsequently, another Order was issued on 29 August wherein it was clarified that the sanctioning limit by the respective authorities will also be applicable for PPF and SCSS.
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The Order states – “The authorities mentioned below are competent to sanction claims without production of legal evidence up to the limit noted against each, after expiry of 6 months from the date of death of the depositor, if no succession certificate or probate of will or letter of administration of the deceased estate is produced during the period or up to the date of sanction.”
In the case where claims are not yet submitted or claims are already submitted but not yet sanctioned, these revised provisions will apply.