Post Offices that are Core Banking Solution or CBS enabled will deduct the outstanding RD loan/interest amount from the mature RD account. The amount deducted will be adjusted through the office account at the time of RD maturity payment.
The postal department says that it is receiving applications from RD account holders for depositing the outstanding RD loan/interest amount on the matured account on the software platform. After the investigation of this entire matter, necessary amendments have been made by the Department of Posts. Let us also tell you what kind of changes have been made by the postal department in this matter.
Loan Amount to be Deducted at the Time of Maturity Payment
Post Offices that are Core Banking Solution or CBS enabled will deduct the outstanding RD loan/interest amount from the mature RD account. The amount deducted will be adjusted through the office account at the time of RD maturity payment. In other words, if the loan is not repaid till maturity, the loan and interest will be deducted from the maturity amount of the RD account.
Maturity can be done after 5 years and Extend
Post Office RD accounts maturing in 5 years or 60 monthly deposits from the date of opening. Accounts can be extended for a further period of 5 years by applying to the concerned post office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened. Post Office RD account can be maintained without deposit for 5 years from the date of maturity.
The interest to be paid on the loan is so much that the
loan can be taken after depositing 12 installments on RD accounts and keeping the account operational for 1 year. The depositor can avail loan facility up to 50% of the balance amount in the account. The loan can be repaid in a lump sum or in equated monthly installments. Interest on the loan will be applicable as 2 per cent + RD interest rate applicable on the RD account.
