Clarification on SSA Account is Opened in Contravention of Rules : i.e, Account opened by grandparents or more than one accounts for a girl child, etc


During introductory time many grandparents opened an SSA account for their grandchildren's irregularly.


It is well defined in POSB Act that Guardian means father or mother or any other person appointed by the court of law.


Opening of account in the name of minor with grandparents as guardian is the irregularity committed by the official, due to innocence or what so ever may be.


Now they want to change guardian into their natural guarding i.e., Parents. There is no provision in SSA Rules to change the name of guardian except in the case of the guardian (SB Order No 03/2016)


Some parents had opened more than one SSA account to their girl child is also irregular


These are all highly irregular & contravention of our POSB rules. Hence is to be closed without any interest.


**If the customer requests, the proposal for regularisation of the account can be taken up with the MoF by Circle Head.



Change the Name of Guardian for SSA Account - Clarification on SB Order No 03/2016

26.     Accounts Opened in Contravention of Rules


(1).      If an account is opened in contravention of Government Savings Promotion General Rules 2018 & National Savings Schemes 2019, no further transaction should be allowed, and the account should be closed immediately. No interest shall be payable on such accounts. If any interest has been credited / paid in the account, it should be adjusted at the time of closure of the account by inserting interest table TZERO from the date of opening through HINTTM menu. A written notice in the following form should be sent by Registered Post, to the depositor indicating the irregular opening with a request to close the account within 30 days of issue of notice and take the withdrawal payment personally or through an agent. If the depositor does not comply with the request within 30 days, the account may be closed, and the amount may be remitted by crossed cheque after deducting the interest if any already paid.



 Dear Sir/Madam,


      It is noticed that your account No. …….......… has been opened in contravention of Government Savings Promotion Rules 2018 / National Savings Schemes 2019.  As no interest is admissible on the deposits in such account vide rule 9(2) of GSPR 2018, I request you to close the account immediately. You may present your passbook at …… office together with an application for withdrawal and receive payment of the amount at your credit either personally or through an agent. If, however, you failed to close the account within 30 days of issue of this notice, the amount will be remitted to you by cheque after deduction of amount of interest if paid any and the postage charges from the amount at credit.


Yours faithfully,



 (2).      An error entry regarding opening of accounts in contravention of rules must be made by the Postmaster and a copy of the error shall be attached with the Account Closure Form. A report shall also be sent to the Divisional Head.

Note: When the fact of opening the account in contravention of Rules comes to the notice, supervisor has to take steps to make total freeze of the account immediately using the menu HAFSM so that no further transactions can be done in such accounts.


 (3).      In case of account opened in branch office in contravention of rules, the application for withdrawal and the passbook will be received in the account office which should take action to authorize payment and return the warrant of payment and the passbook to the branch office. In case, there is a difference between the balance in the passbook and balance in Finacle CBS Application, the passbook and the application for withdrawal should be sent to the head office and further action taken in accordance with the instructions received from the head office.


POSB CBS Manual Corrected upto 31.12.2021, Page 63 ( Rule No 26)


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