PPF, NSC Accounts Not Functional After Maturity? Here Is What You Can Do!

PPF NSC updates

Public Provident Fund (PPF), National Savings Certificate (NSC), other small saving schemes’ accountholders having its account freezed under code ‘INOP,’ it would mean the account has matured without any extension. As per the latest office order issued by the Department of Post under the Ministry of Communication, freezing of small saving schemes accounts get matured but not closed after three years of maturity. The order has been issued to make the CBS system robust, incremental changes are implemented to ensure that the risk of misappropriation involved in CBS operations is minimized.

A “Standard Operating Procedure for Handling of Accounts/Certificates Marked Freeze under Reason Code “INOP: – Inoperative More Than 3 Years” was also made public by the office order and must be adhered to in this case.

According to the office order, any account holder whose account or certificate is discovered to be frozen with the freeze code “INOP: – Inoperative more than 3 years” should be requested to provide the following documentation if they visit any post office with a certificate or passbook for closure:

a) Passbook/Certificate;

b) KYC Documents (Mobile number, PAN card and Aadhaar or address proof as per rule 6 of Government Savings Promotion General Rules-2018);

c) Account Closure Form (SB-7A): – Account holder should also be requested to submit account closure form, passbook and details of PO Savings Account number or Bank account details along with a cancel cheque/copy of passbook for credit of maturity value into his/her savings account. Depositor(s) signature shall be obtained on acquittance portion of account closure form, so account holder(s) need not to visit post office again and maturity value get credited in his/her PO Savings Account or Bank Account.

Similar documentation must be requested from the account holder for accounts with Head Post Office status, and the method outlined below must be followed;

1] The designated PA and APM (SB) must confirm the account information of documents received with Finacle after receiving a case for unfreezing and closure at the Head Post Office. Following confirmation of the case’s validity, the account or certificate in question must be unfrozen under the supervision of two HO Supervisors.

2] After closure of account by counter PA, APM (SB) shall verify closure of account.

3] In Head Post Office, a separate register will be maintained for’ REGISTER FOR CLOSURE of account identified as “INOP Inoperative for more than 3 years.

4] After entering closure details in the above register, APM (SB) shall put up a register to Head Postmaster for seen.

5] Thereafter, Passbook, Account closure form, KYC document and cancel cheque/copy of the passbook shall be forwarded to SBCO concerned along with other vouchers.

6] SBCO PA and supervisor while checking vouchers of closed accounts which were identified as INOP-Inoperative for more than 3 years, will check account details with Account Closure Form and copies of KYC documents of Account holder are attached with the voucher. If any shortcoming is noticed, objection should be recorded as per laid down procedure.

7] All Visiting/Inspecting Officers, while visiting/inspecting Head Post Offices, should invariable check the prescribed register “REGISTER FOR CTOSURE OF account identified as “INOP – Inoperative for more than 3 years” and see that procedure prescribed above is followed scrupulously.

8] CEPT shall share fortnightly report with circle CPC (CBS)on details of accounts un-freezed from 0″INOP-lnoperative for more than 3 years” reason code.

9] Circle shall get the report verified within a week with reference to the “REGISTER FOR CLOSURE OF account identified as “INOP-Inoperative for more than 3 years” maintained at the Head Post Office and take appropriate measures in case any discrepancy noticed.


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