Post Office Savings Bank General Rules, 1981 have been amended by notification dated 13-03-2014. The Gazette of India dated 28-03-2014 was released by the Finance Ministry on 30 ^th December, 2014.  The amendments seek to provide new facilities that will be now available to the post office branches working on Core Banking Solution (CBS) Platform.

CBS is networking of branches, which enables customers to operate their accounts, and avail banking services from any post office on CBS network, regardless of where they maintain their account. The customer is no more the customer of a particular post office. Thus, CBS is a step towards enhancing customer convenience through “Anywhere and Anytime Banking”. CBS / Postal Banking solution is part of the overall solution planned for India Post, 2012 project.

As per Notification, The facilities to be provided by CBS branches of Post Office are as under:

1. Deposits in Post Office Savings Bank can be made in electronic mode (RTGS, NEFT etc.)
2.  Issue of Automated Teller Machine (ATM) or Debit Card to savings account holder on payment of prescribed fee.
3. Withdrawal of money by account holder using any electronic mode.
4. Issue of statement of account in lieu of passbook at the option of the customer on payment of prescribed fees.

It has been further provided that in case of withdrawals or deposits are made through cheques or in electronic mode, the passbook shall be presented to Post Office for updation.

Further, Post Office Savings Bank shall not be responsible to a depositor for any fraudulent withdrawal by a person obtaining possession of the passbook or ATM or Debit card or a cheque book of the depositor or by using any electronic mode of withdrawal

Besides, there are many other amendments as under:

Amendment to Post Office Recurring Deposit Rules, 1981
If there are more than four defaults, the account shall be treated as discontinued and revival of the account shall be permitted only within a period of two months from the month of fifth default and in case a depositor fails to deposit next monthly deposit within the time prescribed, a default fee at the rate of five paise for every five rupee per defaulted deposits shall also be paid along with regular monthly deposit.

An account, in which all defaulted deposits are deposited with prescribed default fee and prescribed time shall not be treated as discontinued

if there are not more than seven defaults in the monthly deposits, the depositor may, at his option, extend the maturity period of the account by as many months as the number of defaults and deposit the defaulted deposits during the extended period

If there are more than seven defaults in the monthly deposits, the account shall be treated as discontinued ·and the revival of the account shall be permitted only within a period of two months from the month of eighth default, subject to payment of  default fee and defaulted deposits

Amendment to Post Office Time Deposit Rules, 1981
Where a deposit in an account standing at the post office working on Core Banking platform become due for repayment, the account shall be automatically renewed from the date of maturity for the same period for which it was opened initially and the deposit shall be eligible for rate of interest applicable on the date of renewal."

Where a deposit in 1-year, 2-year, 3-year or 5-year account is withdrawn prematurely before the expiry of l year from date of deposit, interest at the rate applicable to post office savings account from time to time shall be payable to the depositor

Amendment to Senior Citizens Savings Scheme Rules, 2004
Deposits in cash can be made up to rupees one lakh (previously, less than rupees 1 lakh)

Interest shall be payable from the date of deposit to 31st March/30th, June/30th, September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.

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