SB ORDER NO. 06/2011 - Treating the MSY Accounts at par with Savings Accounts

SB ORDER NO. 6/2011 F.No.116-04/2008-SB Government of India Ministry of Communications & IT Department of Posts Dak Bhawan, Sansad Marg,...

SB ORDER NO. 6/2011

F.No.116-04/2008-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg, New Delhi-110001, Dated: 27.04.2011

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Treating the MSY accounts at par with savings accounts and charging of service charge of Rs.20/- per year.

Sir / Madam,

The undersigned is directed to say that MSY was introduced in 1993 and was discontinued from 10.8.2001. While issuing notification for discontinuation of the scheme, Department of Women and Child Welfare mentioned in the notification that no incentive or interest on MSY accounts will be admissible from 1.8.2001 and existing MSY account holders will have the option to convert their MSY accounts into savings account with post offices. It was observed that this option was not exercised by many MSY account holders as a result of which lakhs of accounts are still stands in the books of post offices.

1. Some circles suggested that balance in most of such accounts is less than Rs.50/- and these accounts may be treated at par with silent accounts and can be closed by charging service charge of Rs.20/- per year.
2. P&T Audit has started writing draft audit paras on this issue mentioning that the Department for illegally retaining these accounts which were to be converted into savings account as per notification dated 1.7.2001. This contention of the audit is incorrect as there was no such instruction in the notification and the onus was on the account holder to convert these accounts into savings account by fulfilling minimum balance condition.
3. The whole issue has been reconsidered by this office and keeping in view the large number of accounts lying in the post office records in manual format and the coming project on introduction of CBS, the competent authority has now decided to close all these accounts by way of charging service charge of Rs.20/- per year or if the balance in account is below Rs.20/-, the whole balance in the account.
1. It is therefore requested that following procedure has been defined to implement the above decision:- Each post office will prepare list of all MSY accounts standing in its office (including standing at EDBOs in account) by noting account number and balance amount. Postmaster of the post office will prepare one account closure form of the total amount shown in the list and
2. attach one copy of the list with the Closure form as supporting voucher. The total amount will be shown withdrawan from MSY head and credited under UCR (service charge on MSY accounts). Office copy of the list will be retained by the postmaster for 6 years. All other records relating to these accounts shall be transferred to HPO. In HPO, the amount of withdrawal will be deducted from the amount lying in the MSY head and amount credited in UCR will be classified under the relevant head of Service charge on silent accounts (1201200-(01)-03. The record received in the HPO will be preserved for 2 years in the SBCO.
4. All HPOs will intimate the total number of accounts closed and amount charged under UCR to their Divisional Offices/DAP who will intimate the same to the Circle Office. Circle Office will reconcile the figure with DAP after consolidating the reports received from various divisions/region and send a report to this office for the circle as a whole. It may be ensured before sending the report to this office that the amount being intimated, has been charged in the proper head by DAP.
5. This may kindly bring to the notice of all post offices and administrative office for strict compliance.
6. This issues with the approval of Secretary Posts. Yours faithfully,

(Kawal Jit Singh) Assistant Director (SB)

Copy to:-

I. DDG(FS)/DDG(VIG)/JS&FA/DDG(PAF)/DDG(RB)

II. Director (FS)/Director (CBS), Dak Bhawan.

III. Director of Audit (P&T), Delhi.

IV.

All Directors/Dy. Directors of Accounts, Postal

V.

Director, Postal Staff College, Ghaziabad.

VI. All Directors, Postal Training Centres.

VII. Director CEPT, PTC Mysore for uploading the SB Order in Department’s Web Site.

VIII. A.D (Tech), SDC Chennai O/o CPMG T.N.Circle, Chennai.

IX.

AD /Inspection/PF/Vigilance

X.

All Accounts Officers ICO(SB)

XI. All recognized unions.

XII. PS to Member (T)