1

TYPES OF SAVINGS SCHEMES

Saving Account (SB)
Recurring Deposit (RD)
Time Deposits ( 1/2/3/5 TD)
Monthly Income Scheme ( MIS)
Public Provident Fund ( PPF)
Senior citizen savings scheme ( SCSS)
National Savings certificates ( NSC)
2
Small savings schemes
Savings Accounts:--
Deposits and withdrawals permitted
every day
Rate of interest :-3.5% up to 30-11-11
With effect from 01-12-2011 rate of
interest is 4% per annum.
Minimum Rs. 50/-
Maximum Single A/C:-
Joint A/C:- NO LIMIT
3
Recurring Deposit:---
Monthly deposit of fixed Amount for 5
years
Min. of Rs. 10 and multiples of Rs.5/-
Maturity Value for Dn Rs 10/- for
accounts opened on or after 01.12.2011
is Rs 738.62
8.4% interest w.e.f 01.04.12
Maximum limit :-No limit.
Pre Matured Closure is allowed after
completion of 3 years


4

Time Deposit:-----
1/2/3/5 yr accounts
Only one deposit in an account
Minimum amount of deposit Rs.200/-
or in multiples of Rs. 200/-
Maximum limit :-No limit.
Joint account is permissible
Pre Matured Closure is allowed.
Interest is compounded quarterly and
paid annually



5
TD rate of interest

Period of
Deposit
Rate of interest
(Quarterly
compounded)
w.e.f 01.12.2011
Rate of interest (Quarterly
compounded)

w.e.f 01.04.2012

1 Year 7.7 8.2
2 Years 7.8 8.3
3 Years 8.0 8.4
5 Years 8.3 8.5
6
MIS accounts
Period of the account -5 years
Rate of interest will be 8.2% per annum w.e.f
01.12.11, 8.5% w.e.f 01.04.12
Minimum Deposit amount is Rs.1500/-or
multiples of Rs. 1500/-
Maximum.:-Single A/C-4.5 lacs.
Joint A/C9.00 lacs.
No Bonus for MIS accounts.
Interest will be paid on the date of opening
Pre Matured Closure is allowed
7
PPF accounts opened with effect
from 01-12-2011
Minimum amount of deposit is Rs.500/- in a
financial year and in multiples of Rs.5/-
Maximum limit of subscription in a financial
year shall be Rs 100000
Rate of interest wef 01-12-2011 will be 8.6%
per annum , 8.8% w.e.f 01.04.12
Period of account :-15 Years from the end of the
year in which account is opened.
PPF accounts can be continued after maturity

8
(6) Senior Citizen Savings scheme :
Opened by an adult age of 60 years and
above.
Minimum Deposit is Rs.1000/- and in
multiples of Rs.1000/-
Maximum Deposit :-------Rs.15 Lacs.
Rate of Interest:----9% up to 31.03.12
Rate of interest 9.3% w.e.f 01.04.12
Interest will be payable quarterly basis.

9
Change of interest rates
Schemes Prior to 1.12.2011 w.e.f 1.12.2011 w.e.f 1.4.2012
SB 3.50 4.0 4.0
RD 7.50 8.0 8.4
MIS 8.00 8.2 8.5
SCSS 9.00 9.0 9.3
1 year TD 6.25 7.7 8.2
2 year TD 6.50 7.8 8.3
3 year TD 7.25 8.0 8.4
5 year TD 7.50 8.3 8.5
PPF 8.00 8.6 8.8
5-NSC 8.00 8.4 8.6
10- NSC - 8.7 8.9


10





Exercise 1.1 to 1.3
11
Savings schemes available at BOs
Saving Account (SB)
Below poverty line (BPL) account
Recurring Deposit (RD)
Time Deposits ( 1/2/3/5 TD)

12
Process flow
Opening of account
Subsequent deposits
Withdrawals
Closure
Transfer
Misc (issue of duplicate pass book)
13
Forms
SB-3 card ( Application)
SB-103 ( Pay in slip)
SB-7 ( withdrawal form)
SB-7(a) ( Closure form)
SB-10 (b) (Transfer application form)
SB-5 ( pass book)

14
Documents
SB- Journal
RD Journal
TD - Journal
Specimen Signature Book
15
What is Money Laundering?....
People want to legitimize the ill gotten money
through money laundering which is gained
through criminal means such as Illegal arms sales,
Smuggling, Prostitution rings, Embezzlement,
Insider trading, Bribery, Computer frauds, Fake
Currency Notes circulation, Drugs trafficking etc.
The money so generated is tainted and is in the
nature of dirty money.
Processing of conversion of such proceeds of crime,
the dirty money to make it appear Legitimate
Money is Money Laundering

Actions which can be taken against persons
involved in Money Laundering?
Attachment of property. The attached
properties may be confiscated and disposed
off.
Persons found guilty are punishable with
imprisonment for a term which shall not be
less than three years but may extend up to
seven years and shall also liable to a fine up
to Rs.5 lakhs.

What is PMLA and its Objective?
Prevention of Money Laundering Act 2002.
It has come into effect from 1
st
July 2005
amended on 1.6.2009
It extends to whole India including Jammu &
Kashmir.
To prevent money- laundering and to provide
for confiscation of property derived from, or
involved in, money laundering.


Know Your Customer
Purpose
To prevent money laundering and combating of
financing in terrorism under PML Act-2002 and CFT
Deposits are classified under three categories
(1) Monthly average balance below Rs.50000/-
It includes
(A) (i) All types of accounts opened in their name
(ii)Accounts opened in the name of minor(s) as guardian
(B) (i) All types of certificates in their name
(ii) Certificates purchased in the name of minor(s) as guardian
19
Know Your Customer
(2) Monthly average balance between
Rs.50,000/- and Rs.10 lakhs
(A) (i) All types of accounts opened in their name
(ii)Accounts opened in the name of minor(s) as guardian
(B) (i) All types of certificates in their name
(ii) Certificates purchased in the name of minor(s) as
guardian

20
Know Your Customer
(3) Monthly average balance above Rs10
lakhs
(A) (i) All types of accounts opened in their name
(ii)Accounts opened in the name of minor(s) as guardian
(B) (i) All types of certificates in their name
(ii) Certificates purchased in the name of minor(s) as
guardian

21
Documents for opening of A/c
Category Documents required for opening A/C
Recent
Photograph
Identity
Proof
Address
Proof
Source of
Fund
Physical
Verification
of address
Category-1 Required Copy of
PAN card,
Electoral
photo ID,
Ration Card,
Passport,
Driving
License, ID
from Central
/ State Govt.
or PSU
Copy of the
any of the
documents
i.e. Electoral
Photo ID,
Bank / PO
Passbook,
Current
Electricity
Bill, Current
Telephone
Bill or letter
from any
recognized
authority
Not
Required
Not
Required
22



PPT 5.1.1
Category Documents required for opening A/C
Recent
Photograph
Identity Proof Address
Proof
Source of
Fund
Physical
Verification
of address
Category-2 Required Copy of PAN
card and copy
of any one of
the documents
like Electoral
photo ID,
Ration Card,
Passport,
Driving
License, ID
from Central /
State Govt. or
PSU

Copy of the
any of the
documents
i.e. Electoral
Photo ID,
Bank / PO
Passbook,
Current
Electricity
Bill, Current
Telephone
Bill

Not
Required
Not
Required
Documents for opening of A/c



PPT 5.1.1
Category Documents required for opening A/C
Recent
Photograph
Identity Proof Address
Proof
Source of
Fund
Physical
Verification
of address
Category-3 Required Copy of PAN
card and copy
of any one of
the documents
like Electoral
photo ID,
Ration Card,
Passport,
Driving
License, ID
from Central /
State Govt. or
PSU

Copy of the
any of the
documents
i.e. Electoral
Photo ID,
Bank / PO
Passbook,
Current
Electricity
Bill, Current
Telephone
Bill
Copy of
document
proving
source from
which funds
received
Address
should be
verified from
State Govt/
Gram
Panchayat /
Postman of
that area
before
opening A/c.
Also
followed in
case of
Transfer of
A/c from
other office
Documents for opening of A/c
Opening Of Savings Bank
Account
If minor of 10 years age , he can open
independently
Minimum deposit Rs. 50/- ordinary account &
Rs.500/- for cheque account
Maximum deposit No Limit
Rate of interest 3.5 % up to 30-11-11
WEF 01-12-2011 Rate of interest 4% per annum
25
Single account by an adult and by a Minor
who is aged 10 years and above.
Joint account by two or three adults
In case of Joint A/c all the depositor to sign
In case of Minor a/c date of birth and maturity
should be mentioned in application form.

26

Opening Of Savings Bank
Account
Customer to present
filled Up Form I (SB-3 card )
Pay In Slip (SB 103)
2 specimen signature slip
Cash
Introducer details is compulsory in SB-3
Customer should furnish the details of witness in
case of nomination
27
Opening Of Savings Bank
Account
The following documents are to be submitted
compulsorily -
3 copies of recent photograph
Identity Proof
Address Proof

28
Opening Of Savings Bank
Account (continued)
For ID Proof any one of the following accepted
Electoral Photo Identity Card
Ration Card
Passport
Identity card from Central/State Govt or PSU
POSB Identity card
Post Office Identity Card
29
Opening Of Savings Bank
Account (continued)
For Address Proof the following be accepted
Electoral Photo Identity Card
Bank or PO Passbook
Current Electricity Bill
Current Telephone Bill
Letter from any recognized authority
30
31
32
33
34
35
Role of BPM Opening Of
Savings Bank Account
Scrutiny of form 1 (SB-3) & pay in
slip(SB-103).
Collect cash & Check w.r.t SB 103
Check eligibility for opening of account
See that all information furnished by the
depositor in SB-3 is correct.

36
Role of BPM Opening Of
Savings Bank Account
Prepare following documents
Specimen Signature Book (S S Book)
Issue SB 26 receipt
Make deposit entry in BO SB journal showing
account as new account in remark column along
with SB 26 receipt number.

37
SB-26 Receipt Book
It is issued to a depositor who opens
SB/RD/TD accounts at BO
50 receipts in triplicate in each book
1
st
copy given to depositor
2
nd
copy sent to Account office along with new
account documents
3
rd
receipt will be office copy
38
SB-26 Receipt Book
On receipt of new a/c pass book from AO, it
should be given to depositor by collecting back
SB-26 receipt
It should be pasted along with office copy of SB-
26
Acquittance for receipt of PB by depositor
obtained on reverse of SB-26
Account number should be noted in SS book, SB
journal
Date of delivery of PB is to be noted on SB
journal

39
40
41
42
43
44
Opening of BPL account
Normal procedure for opening of Savings Bank
account should be followed
In addition to the ID and Address proof prescribed in the
KYC norms, a self attested (attested by a Gazetted
Officer/Sarpanch/Postmaster in case of illiterate
individuals) copy of any document issued by the
State/District Authority identifying the individual as
member of the BPL household should be taken and
attached with SB-3.
45
Opening of BPL account
Documentary proof of BPL household should
be attached with SB-3 and a remark in red ink
as BPL should be recorded in SS Book.
Remark BPL should be recorded in the SB-
26, BOSB Journal .
46



Exercise 1.4 & 1.5
47
Subsequent Deposit
Depositor has to fill up the pay in slip (SB-103)
properly.
Depositor should hand over the cash, SB-103 &
passbook to BPM.
Pass Book & counterfoil of SB-103 should be
handed over to the depositor after completion of the
transaction.
48
Minimum amount of deposit Rs. 5/-

Mode of deposits Cash, DD, Cheque, Refund
Vouchers, Dividend warrant, Interest warrant,
Maturity Instrument, Crossed IPO.

A/c becomes silent if no transaction made
during last three financial years
49
Role of BPM
(Subsequent Deposit)
Examine passbook and pay in slip (SB-103).
Check the cash tendered with SB-103.
Make entry in following record
Passbook
BO SB journal
Return passbook & counter foil to depositor
50
SAVINGS BANK --- Subsequent
Deposits By Cheque
Date of deposit is the date of clearance of
cheque
If mode of deposit is cheque, then
The Cheque should be drawn in favor of depositor
or postmaster
For out station cheques clearing charges
collected at following rate
up to Rs. 1000 - Rs. 30/-
above Rs. 1000 and Part - Rs. 3/-
No clearing charges for local cheques





Exercise 1.6 (On subsequent deposit)
52
Role of BPM -SB WITHDRAWAL
Examine passbook & SB-7 form
Verify balance with reference to SB journal
Verify/compare the signature on SB-7 with SS
book
Sign below the signature of depositor in SB-7
Make entry in following records
Passbook
BO SB journal noting the Date of Last Transaction
(DLT) and Date of Next Transaction (DNT) in the
previous transaction
53
SB WITHDRAWAL ROLE OF
BPM

Make entry in SB-7 in warrant portion if
amount is 5000/ or less than Rs. 5000
Effect the payment & return passbook
If amount is more than 5000. Issue SB-28 receipt
Forward PB, SB-7 to the A.O. duly entered in
BODA
On receipt of passed warrant of payment from
A.O. effect withdrawal by obtaining acquittance
of depositor. Collect the SB-28 receipt
54
55



Exercise 1.7 Exercise on Withdrawal
56
Receipt For Depositors
Passbook.(SB-28)

Whenever the passbook is taken by Post Office for
any purpose and not returned to the depositor
immediately, SB-28 is issued.
Prepared by BPM


57
BPM should note the following details
Purpose of collecting the pass book,
A/C Number, Name of depositor, Balance,
Probable date of receipt of PB from AO on the back of
depositors copy of SB-28,
When passbook is returned to depositor, acquittance
to be taken in depositors copy of SB-28 & it is to be
pasted with the office copy.

58
59



Exercise 1.8 SB-28
60
Role of BPM - Closure of the
Account
BPM should collect application in SB-7A
with pass book
He should check application with pass book
and SB Journal
Compare signature with Specimen
Signature book
Impress date stamp on application side
Issue receipt in SB-28
61
Closure of the Account
Forward passbook and application to account
office
Passbook and passed warrant of payment are
received from AO


62
Closure of the account
When depositor calls at PO-
-enter withdrawal for full amount in pass book and
BO SB journal
-note BAT as NIL
Note remarks account closed in red ink in
following records
below last entry in pass book and remarks column
of BO SB journal
first and all unused pages of pass book
Specimen Signature book
63
Closure of the account
Pay amount to depositor after getting
Acquittance in SB-7A
Get back SB-28 and file with office copy
Deliver closed passbook to depositor
(Acquittance for closed passbook in SB-7A)
Impress BO date stamp on the SB-7A near
AO/HO date stamp
64
65
Lapsed warrant of payment
Warrant of payment remaining unpaid after
the expiry of 7 days in the Branch office from
the date of receipt from AO is treated as
lapsed warrant of payment
It should be returned to AO
If 7
th
day fall on Sunday or holiday, it should be
paid on the following working day. If it is not
paid on that day also, then it should be
returned to AO
66
Preparation of SB Journal
Entry of opening of account/transaction made
in existing account should be made in the BO
SB Journal.
The column of account number should be left
blank in case of new a/cs.
The new account number is to be noted only
after the same is allotted by the AO.
PR number should be noted in the Remarks
column in RED INK for new a/c.
67
Preparation of SB Journal
Note the BAT
Note DLT
Initial the appropriate column
The DNT should be entered when transaction
happens in the account subsequently
68
69



Exercise 1.9
70
SB Account Transfer
A/C can be transferred from one PO to
another without any cost/fee.
Depositor must fill up the SB-10(b) form &
furnish all details properly.
Depositor must handover SB-10(b) form &
passbook to BPM.
BPM should forward application to AO for
further action


71
Transfer Of SB Account Procedure
Depositor to submit application with
passbook
Form SB-10(b) not obligatory
Signature of depositor to tally-otherwise to
be identified
72
Transfer Of SB Account Some
conditions
Transfer o SB account is not permissible after
death of depositor
Silent accounts can not be transferred before
revival
For transfer of Joint Account-all depositors to
sign on application
73



Exercise 1.10
74
Issue of duplicate pass book
Issued by departmental SOs & HOs
Application in the prescribed form
Fee Rs.10 (postage stamp)
Depositor to furnish details
BPM to satisfy about identity of depositor

75
Issue of duplicate pass book - Role
of BPM

BPM may receive application
Sign the application for identity of depositor in
relevant column
Forward application to AO entered in BODA
Deliver duplicate PB on receipt from AO
76



Exercise 1.11
77
78