FAQ’s on Small Saving Schemes

• Whether Kisan Vikas Patra can be purchased by a Non Resident Indians? No, The Non Resident Indians are not eligible to purchase Kisan Vikas Patra as there is no such provision in the rules.
• Whether Kisan Vikas Patra can be purchased by Karta on behalf of Hindu Undivided Family? No, The Kisan Vikas Patra can not be purchased by the Karta on behalf of the Hindu Undivided Family as there is no provision in the rules.
• Whether, The teacher’s provident fund are eligible to invest in Kisan Vikas Patra? No, The teacher’s provident funds are not eligible to be invested in Kisan Vikas Patra.
• Whether, a duplicate Kisan Vikas Patra can be issued? Yes, If a certificate is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office of issue.
• Whether, Annual interest of Post Office Time Deposit Account automatically credited in the savings account? Yes, In case of 2/3/5 year Time Deposit Accounts, the depositor on request to the post office can get annual interest due on his time deposit account credited in his Post Office Savings Account in the same post office.
• Whether, Post maturity interest is payable on Post Office Time Deposit Account? Yes. where repayment of a deposit has become due but has not been made, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions :-
  (i). The interest shall be simple and shall be calculated at the rate applicable from time to time, to savings accounts of the type of single or joint account.
  (ii). For the purpose of payment of interest any part of the period which is less than one month shall be ignored.
  (iii). The interest shall be paid to the depositor in a lump sum at the time of repayment of amount due.
  • Whether, Monthly Income Scheme (MIS) account can be opened by Non Resident Indians or Karta of the Hindu Undivided Family?The Monthly Income Scheme account can not be opened by the Non Resident Indians and Karta of Hindu Undivided Family as there is no provision for opening of such accounts in M.I.S. Rules.
  • Whether the National Savings Certificates can be purchased by the Karta of the Hindu Undivided Family by adding the words “HUF” after his name? No, Joint type certificate can be issued only to two adults under the rules. As such the Karta of Hindu Undivided Family can purchase certificates in his own name by adding the name of one of his co-partners without adding “HUF” after his name.
  • Whether, irregular Monthly Income Scheme (MIS) accounts can be converted from single account to joint account or vice versa? No, MIS accounts opened irregularly by exceeding the prescribed limits from single to joint or vice versa in order to compound the irregularity is not admissible.
  • Whether, Public Provident Fund account can be opened by a Non Resident Indians? Yes, there is no objection to Non Residents opening PPF account out of moneys held in the applicants non resident account in Indian Banks.
  • Whether a Public Provident Fund account can transferred from Head Post Office to Bank or vice versa? Yes, A Public Provident Fund account can be transferred from one Head Post Office to another Head Post Office and one Head Post Office to a Bank or vice versa.
  • If a subscriber of a Public Provident Fund account holder dies and there is no nomination who will get the deposited amount? If it is upto one lakh rupees, the accounts office will pay it to the legal heirs of the deceased on receipt of application in prescribed form, supported with necessary documents without production of succession certificate. If the balance is more than one lakh rupees, the production of succession certificate will be necessary..