With a view to enabling the old/sick/incapacitated account holders, the postal department has allowed senior citizens, differently disabled persons, and persons with physical infirmity to authorize a person to operate their post office accounts such as the Senior Citizens Savings Scheme (SCSS), Post Office time deposits, savings account, etc. Up till now, the above facility was not available to the post office customers and the senior citizen and persons with physical infirmity would have to visit the post office branch to make withdrawals/close accounts, make premature withdrawals from the post office schemes. Now, these types of customers can appoint an authorized person to deal with the account on their behalf.
Through circular dated August 04, 2021, the Department of Posts advised that in case of extreme exigencies (i.e.Senior Citizens or illness of account holder or suffering from physical infirmity or is with differently-abled conditions) the withdrawal or loan or account closure or premature closure may be allowed through authorised person.
According to the department circular, the decision of allowing authorized persons to operate the account was taken by the department as they were receiving various representations from the depositors that due to old age or illness they are unable to attend post offices for withdrawal or loan or closure or premature closure of accounts.
“ Keeping in view of difficulties faced by the Senior Citizens or people suffering from illness, the issue was taken up with Ministry of Finance and keeping the provisions in Rule 11 of ‘Government Savings Promotion General Rules-2018’ in mind, competent authority has decided that in case of extreme exigencies (i.e.Senior Citizens or illness of account holder or suffering from physical infirmity or is with differently-abled conditions) the withdrawal or loan or account closure or premature closure may be allowed through authorised person, said the circular.
Procedure for appointment of the authorized person and operate the account without the physical presence of the account holder:
- The account holder will submit a duly filled authorization letter in form SB-12 to the post office branch for operation of account viz. withdrawal, loan, closure or premature closure of account etc. As per the circular, the authorized person should be literate and he cannot be an agent or an employee working in a post office branch.
- In case of jointly operated account, all the account holder(s) will be required to attest the signature of the authorized person. However, if the account is operated on the basis of the either or survivor account, then any account holder can attest the signature of authorized person.
- In case of withdrawal form SB-7 will be required, for closure of account form SB-7B will be used.
- Form SB-12 duly filed and signed by the account holder/s should be used for every transaction.
- Self-attested copy of ID and address proof of both the account holder and authorized person will be submitted along with the form. If there is more than one transaction, then only one set of KYC documents along with photo can be obtained.
- Transactions are approved by post office officials similar to the procedures adapted in a bank for payment. In case officials are not satisfied with the genuineness of the request of the account holder, then physical verification of the request of the account holder can be done for withdrawl from the account before effecting the payment.
- The payment will be made either via a cheque or credit into post office savings account or bank account of the account holder.. Cash payments will be allowed only in case of withdrawal from savings account.